FASB

FASB Exposure Draft on Hedge Accounting Sets U.S. on Diverging Path

In its public letter submitted last week to the Financial Accounting Standards Board (FASB) commenting on proposed accounting rules, Reval, a global derivative risk management and hedge accounting solutions provider to over 400 public companies, outlined what it believes to be the most significant areas of divergence from International Financial Reporting Standards (IFRS).

In February, the Securities and Exchange Commission laid out its position regarding global accounting standards, making it clear that the Commission continues to believe that a single set of high-quality globally accepted accounting standards would benefit U.S. investors.

The Monitoring Board welcomes the commitment of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to implement enhancements to provide greater transparency to the standard setting process and to increase their efforts to reach conclusions in these major projects.

At their joint meeting last week, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) reaffirmed their commitment to improve International Financial Reporting Standards (IFRS) and U.S. generally accepted accounting principles (U.S. GAAP) and to bring about their convergence. The Boards also agreed to intensify their efforts to complete the major joint projects described in their 2006 Memorandum of Understanding (MoU), as updated in 2008.