Mario Christodoulou, Accountancy Age, Wednesday 26 May 2010 at 09:40:00

"There are ways to do it" Tweedie claims.

The head of International Accounting Standards Board (IASB) believes an impasse on the fair value accounting rule can be reconciled, the Journal of Accountancy reports.

Sir David Tweedie, chairman of the IASB, blamed mismatched timing for the differing views of the IASB and its US counterpart, the Financial Accounting Standards Board (FASB).

The IASB split its financial instruments project into three phases, while FASB has opted to release its reforms in a single project.

The IASB's model uses a mixed measurement approach to value assets, while FASB will be proposing to measure assets at full fair value.

Sir David said there could be a means to reconcile FASB's and the IASB?s numbers.

?Say we both stick to our same positions [on classification and measurement], maybe we need to put out something that would say ?if you want to get the same other comprehensive income as FASB, you have to add this on, which would be the fair value?? he said. ?FASB would do the opposite. If you want to get the FRS number, you deduct this. There are ways to do it.?

Further reading:

IASB Chairman Outlines Approach for Reconciling Financial Instrument Standards

IASB-FASB take baby steps towards fair value