By Michael Cohn / Accounting Today
Published December 05 2017
Accounting standard-setters are tweaking the rules for the standards taking effect in the next few years, according to officials.
Financial Accounting Standards Board chairman Russell Golden explained how FASB is using what he called the “Kaizen” approach to standard-setting, a Japanese word for “change for the better.”
“It describes a process of continuous, incremental improvements as opposed to sweeping changes,” he said Tuesday during a speech at the AICPA’s Conference on Current SEC and PCAOB Developments in Washington, D.C. He noted that FASB has been focusing on successful implementation of major new standards for revenue recognition, credit losses, leases and hedging.
“Stakeholders have also expressed concerns about how the credit losses standard will be audited and what its impact may be on capital reserve requirements,” he said. “For that reason, we continue to meet with regulators—including banking regulators—to discuss issues that surface. We share questions we receive—as well as the answers to those questions—with these agencies to ensure interpretations are consistent with the Board’s intent. And the FASB staff provides training to agency examiners on credit losses on a periodic basis. The FASB remains committed to continuing to work with the SEC, PCAOB, and banking regulators to ensure a smooth and timely adoption.”
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