While the Federal Trade Commission was announcing the latest delay in Red Flag Rules enforcement, the chairman of the Financial Accounting Standards Board in the United States and the chairman of the International Accounting Standards Board in Europe were writing a lettter to the G20 nations to announce that they are pushing back the timetable for convergence of U.S. Generally Acceptable Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Compliance Week reports Robert Herz of the FSAB and David Tweedie of the ISAB, announced last week they are extending the timetable until the end of next year rather than trying to finish the major rule changes by mid-2011. Tammy Whitehouse writes:
The chairs said they will publish no more than four major proposals, or exposure drafts, each quarter, to give preparers and users of financial statements more time to study and react to each one.
There has been no indication yet regarding how the board will prioritize the rules to determine the order in which the proposals wll be published, but in the letter, Herz and Tweedie said the changes should not affect the Securities and Exchange Commission's plan to consider whether to adopt IFRS in the United States. Once the convergence process is complete, the boards will solicit feedback on how to transition to the new rules.