IASB AND FASB COMMIT TO A GLOBAL APPROACH TO ENHANCE MARKET CONFIDENCE

The IASB and the FASB have announced further details on their joint approach to dealing with
reporting issues arising from the global financial crisis. The boards reiterated the importance of working cooperatively and in an internationally coordinated manner to consider accounting issues emerging from the global crisis. The boards also emphasized the role of high quality financial reporting in helping enhance confidence in the financial markets by responding in a timely manner that improves transparency and provides greater global consistency in financial reporting.

• Rapid appointment of a high-level advisory group: The boards agreed that the advisory group shall be comprised of senior leaders with broad international experience with financial markets.
• Public round tables in Asia, Europe, and North America: In the coming weeks, while the advisory group is being established, the IASB and the FASB will organise three round tables—one each in asia, Europe, and North America.
• Common long-term solutions to reporting of financial  instruments for Reducing Complexity in Reporting Financial Instruments: In addition to considering the potential for short-term responses to the credit crisis, both boards emphasized their commitment to developing common solutions aimed at providing greater transparency and reduced complexity in the accounting of financial instruments. The boards will use their joint discussion paper, the responses received to the discussion paper, and the deliberations of the high-level advisory group as starting points for this longer term objective. The boards will reconsider the composition of the existing IASB Financial Instruments Working Group to ensure that working group provides appropriate and balanced advice to both boards.