By the end of the month, the IASB will have received the
comment letters on its proposals for clarifying IFRS 15.
Although they arise out of the work of the Joint Transition
Resource Group (TRG), the amendments put forward by the
IASB differ from those proposed by the FASB in its own
consultation documents. So the desire of the two boards to
develop twin standards has not managed to overcome the
difference of philosophy between IFRS and US GAAP.
During this ‘pre-interpretation’ phase, the FASB has made
clear its appetite for a ‘rule-based’ approach. Leopards
don’t change their spots.
This experience should certainly serve as a warning to the
IASB, which will have to emphasise its independence of the
FASB in its future interpretations of IFRS 15. Otherwise, it
will open up the risk that IFRS 15 implementation guidance
as a whole will be dictated by the American regulators,
which seems to prefer strict rules applicable to everyone,
rather than an approach in which financial statements
preparers apply a principle while exercising judgment.
Enjoy your reading!