NEW YORK, July 8 /PRNewswire/ -- PricewaterhouseCoopers, responding to the Financial Accounting Standards Board's (FASB) and the International Accounting Standards Board's (IASB) ambitious agenda to complete about a dozen new accounting standards (about half of which are major projects) by the end of 2011, said the current timeline is not sufficient to produce standards that meet the boards' high thresholds for quality.
Mike Gallagher, PwC's U.S. National Office Leader, said, "it is of utmost importance that adequate time be given to complete an effective, thorough analysis of the accounting, business and operational impacts of the proposals." Gallagher added, "given the boards' missions of issuing high quality standards, we believe the proposed timeline will need to be further extended to allow for appropriate due process."
In a Point of View article released today http://www.pwc.com/us/en/point-of-view/slowing-down-the-pace-of-standard-setting.jhtml, PwC said it fully supports an aggressive timeline and the goal of attaining a single set of high quality global standards. Yet, the firm also expressed significant concern that the current pace of standard setting does not provide enough time for companies to fully analyze the proposals and respond comprehensively. In the article, the firm's leadership called upon standard setters to "reevaluate the current timeline and set more reasonable expectations."
Explaining the firm's concern about the ambitious timelines, Gallagher pointed out that "even the largest of companies won't have the resource bandwidth to properly evaluate and respond to so many complex standards in such a limited period of time."
The projects underway by the FASB and IASB to improve both U.S. generally accepted accounting principles and international financial reporting standards are part of a wider goal to converge U.S. and international standards in key areas.
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