IASB Chief Urges U.S. to Adopt International Accounting Rules

U.S. regulators should adopt international accounting rules, known as IFRS, to improve transparency, the chairman of the International Accounting Standards Board said today.

Adopting the standards would give U.S. companies “the same financial reporting language for both internal management reporting and external financial reporting on a worldwide consolidated basis,” Hans Hoogervorst, IASB chairman, said in a speech in Boston.

Hoogervorst this week criticized U.S. accounting rules that differ from standards set by the IASB during a hearing in the European Parliament. Banks don’t need to show all their derivatives exposure on their balance sheet under U.S. rules, known as Generally Accepted Accounting Principles or GAAP, he said.