FASB Proposals Latest in International Accounting Conformity Effort

December 15, 2003 (PLANSPONSOR.com) - As part of its continuing move to stay on the same regulatory page as its international counterparts, the US accounting rulemaker Monday issued four proposed standards to help conform US rules to those covering accountants internationally.

The Financial Accounting Standards Board (FASB)’s latest offerings are part of its effort started last year with the International Accounting Standards Board (IASB) to make sure FASB rules and existing IASB regulations correspond(See  FASB, IASB Study Convergence Items ), a ccording to a news release .

The FASB Exposure Drafts propose:

  • voluntary changes in accounting policies that would be required to apply retrospectively rather than by cumulative effect adjustment, as currently mandated
  • three changes to the calculation of earnings per share
  • asset exchanges that would require a gain or loss to be recognized on the exchange of similar productive assets based on the fair value of the exchange unless the exchange lacks commercial substance
  • unusual (“abnormal”) amounts of idle capacity and spoilage costs would be excluded from the cost of inventory and expensed as incurred.

FASB said in the news release that it and the IASB are still working on several projects on major accounting topics and are developing a coordinated agenda for continuing their joint project. An additional proposed standard on the classification of liabilities is expected in the near future, FASB said.

FASB will take public comment on the proposals until April 13, 2004, FASB said. For more information, go to  www.fasb.org.