US condorsement 'only viable option'
Thursday 19 January 2012 - by Andrew.Hickley@gfsnews.com
In a report released on Wednesday, Fitch argues that the country is likely to bring in the standards in a compromised endorsement approach labelled 'condorsement'.
The latter option is the only workable choice for the SEC, it argues, with wholesale adoption "out of contention" and convergence highly unlikely, given a diminishing US influence on the standards.
"This leaves the endorsement approach as the only viable option," Fitch says.
"This compromised approach not only preserves some measure of control of the accounting standards that will be incorporated into US GAAP, but it should also preserve FASB's active participation in global standard setting.
"Fitch still expects the US to move forward with a plan to incorporate IFRS into US GAAP, albeit in a prolonged, cautious and incremental way," it adds.
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