Off-balance sheet standards to be harmonised...

International accounting standards which deal with off-balance sheet activity are to be harmonised in response to the financial crisis, it has been revealed. Read original article.

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) announced the move following their latest meeting into the impact of the global recession.

Furthermore, the two boards are also set to work on analysing loan loss accounting within the financial instruments project.

Sir David Tweedie, chairman of the ISAB, explained that the fact that harmonising international accounting standards is such a complicated business is also what makes it necessary.

He said: "That is why in important areas such as financial instruments a common standard that significantly improves financial reporting and leads to a less complex approach is required. The path to achieving convergence will undoubtedly be challenging but the remit we have from policymakers is clear."

Earlier this month, the FASB issued two new proposals to improve guidance on fair value measurements and impairments.

The IASB has since asked for views on these submissions to see if it should adopt them as well.