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Golden highlighted the major changes in financial reporting that are coming up related to revenue recognition, leasing, financial instruments and other areas.
The FASB is about to complete the last of the so-called convergence projects with the IASB, ending a 10-plus-year period of intense, bilateral standard-setting.
Achieving and preserving more comparable and converged global accounting standards will remain a critically important goal, but the methods the FASB uses to accomplish that objective will change.
Absent a decision in the United States about the incorporation of IFRS into US GAAP, the FASB must decide how to continue to pursue the goal of convergence – while ensuring that the FASB addresses the pressing concerns of those who invest in US capital markets.
For the remainder of this year and next year, the FASB’s top priority will be to complete its major convergence projects. The FASB hopes to release a final standard on revenue recognition in the coming months. The FASB plans to issue final standards on its two financial instruments projects – classification and measurement; and impairment – in early 2014. A final standard on leasing should be completed in 2014 and one on insurance thereafter.
But issuing final standards is just the beginning – not the end – of the process. Once the standard is issued, the FASB plans to spend a considerable amount of time and energy addressed implementation and education issues.
Once the final convergence projects are complete, the FASB plana to continue its work with the IASB through the new Accounting Standards Advisory Forum (ASAF).
While FASB's bilateral relationship with the IASB will end, FASB believes its participation in the ASAF will provide the FASB with an important opportunity to continue to represent US interests in the IASB’s ongoing standard-setting process.
The FASB also believes it represents a valuable opportunity to work together with other national standard-setters around the world to develop high quality standards, both at the global and national level.
And finally, the FASB believes its membership in the ASAF will help continue the process of improving and converging US GAAP – and IFRS.
Golden said that he hoped that when his term as chairman ends, he will leave the organisation and the US Financial Reporting system in a place that is more transparent for investors, less complex for preparers, and more relevant to private companies. He also hopes that US GAAP and IFRS will be closer in many key areas than they are today.