FASB has announced it needs more time to discuss concerns of some companies, auditors and investors about a proposed overhaul of how banks should record loan losses and how the rules would be applied.
IASB Chair Hans Hoogervorst responded that he was worried that changes to the loan-loss compromise could prompt the entire agreement to come undone. That would put the two boards back at square one after three years of trying to formulate the new rules, which are intended to address problems in booking loan losses that were highlighted during the financial crisis.
An unraveling of the agreement would be "deeply embarrassing," Hoogervorst said during a teleconference meeting of the two boards. "I would really find that unacceptable."
FASB and IASB previously reached a compromise agreement on the overhaul — a key part of their effort to eliminate some of the most important differences between U.S. and international rules.
Read more in the Wall Street Journal