Convergence of International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Practices (GAAP) was one of the major themes in a presentation by the Financial Accounting Standards Board (FASB) Chairman Robert H.Herz at last week's American Institute of Certified Public Accountant (AICPA) Conference on Current SEC Developments. Another major theme was undue political pressure on controversial topics such as accounting for stock options.

Below is an excerpt from Mr Herz's comments:

"While getting the [IASB and FASB] to agree on a common answer to particular issues can be quite challenging, that is not, in my view, the greatest hurdle facing international convergence. Rather, the biggest challenge and potential obstacle thus far has seemed to come from particular constituent groups who have lobbied heavily against particular proposals from either the FASB or the IASB that would move our standards closer together. We have seen this here with the campaign in Congress and elsewhere by hi-tech lobby against expensing stock options and in Europe with certain financial institutions who have lobbied the European Commission and national governments against the introduction in Europe of international standards on the accounting for financial instruments that are in many respects similar to those in US GAAP."