Institutional investors recently told the SEC that they like the idea of adopting IFRS—the unified, global system of accounting standards—but have doubts about London’s IASB in the role of arbiter, a role that US-based FASB has played for some time.
IASB, say critics, lacks the muscle needed to ensure the success of IFRS, a principles-based system that’s open to interpretation and way too loosey-goosey for some investors’ tastes.
Meanwhile the SEC has proposed a “condorsement” model for passing the reins from FASB to IASB. Read about how that may look—and more on the IFRS issue—in CFO.com.
Ken Overholt manages Advent’s content and thought leadership programs. He’s been thinking and writing about financial services topics and investment management trends for over 20 years.