ABA fear of twin-track Accounting Standards

The speed at which new international accounting rules are drawn up could lead to future problems, the American Bankers Association (ABA) has warned.

In a white paper, the ABA has explained that while the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are working on tackling the same issues, they are doing so in different ways and at different speeds.

Currently, the IASB plans to finalise a significant section of its new financial instruments standard in 2009.

If this happens before the FASB completes work on its rule, the US could have to adopt the IASB’s standard, meaning American companies would not have “appropriate due process for providing input” on the matter, the white paper warned.

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