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Financial Crisis Advisory Group on Global Accounting Standards

February 2, 2010

The Financial Crisis Advisory Group recently issued a letter to the G-20 Group of Nations expressing its support for “a single set of high quality, globally converged financial reporting standards that provide consistent, unbiased, transparent and relevant information across geographical boundaries”. The letter summed up the Financial Crisis Advisory Group’s review of the progress of the International Accounting Standards Board IASB) and the US Financial Accounting Standards Board (FASB) in addressing the recommendations contained in their July 28, 2009 report.

In their July 2009 report the Financial Crisis Advisory Group set forth four main principles and a series of recommendations to improve the functioning and effectiveness of global standard-setting. The primary areas addressed in its July 2009 report include:

  • Effective financial reporting
  • Limitations of financial reporting
  • Convergence of accounting standards
  • Standard-setters’ independence and accountability

Harvey Goldschmid, Co-Chairman of the group commented on the report by saying “I urge policymakers around the world to study the report and to take note of its conclusions, especially the importance of broadly accepted accounting standards that are the result of a thorough due process. The report highlights the importance but also the limits of financial reporting. Accounting was not a root cause of the financial crisis, but it has an important role to play in its resolution.”

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2 Comments leave one →
  1. March 19, 2010 1:07 pm

    Great Article. Thank you.

  2. December 20, 2010 6:55 am

    There is no doubt that a more standardized and international approach to accounting and reporting will benefit companies and stakeholders across the board, something which should have been called for a long time ago.

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