NEWS RELEASE 10/19/10
FASB Discussion Paper Seeks Input on Effective Dates and Transition MethodsNorwalk, CT, October 19, 2010—The Financial Accounting Standards Board (FASB) issued a Discussion Paper today to solicit input from stakeholders about the time and effort that will be involved in adapting to several anticipated new accounting and reporting standards and when those standards should be effective. The FASB requests comments on this Discussion Paper by January 31, 2011.
“Our joint workplan supporting the Memorandum of Understanding with the IASB identifies targeted completion dates for various projects, but does not address when the standards would be effective,” notes Acting FASB Chairman Leslie F. Seidman. “We issued this Discussion Paper to gather the information we need to create a realistic, cost-effective plan for transitioning to the new standards.”
The Discussion Paper asks for stakeholder input on a number of issues such as the amount of time and effort that will be involved in learning about and transitioning to the new requirements, whether the standards should be adopted at the same time or sequentially over a number of years, and whether different effective dates would be appropriate for different classes of entities. The Board will use the information obtained to develop an implementation plan for the new standards that helps stakeholders manage both the pace and cost of change.
The Discussion Paper is available at www.fasb.org.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.