Global accounting convergence plan seen on track

By Emily Chasan and Huw Jones

NEW YORK/LONDON (Reuters) - Global accounting rulemakers are still on track with a plan to accelerate convergence between international and U.S. accounting rules, a top international accounting standard-setter said on Monday.

In September, the London-based International Accounting Standards Board (IASB), and the U.S. Financial Accounting Standards Board (FASB) set a goal to complete 11 major joint projects by 2011 to improve and converge major areas of accounting, such as revenue recognition and pension accounting.

Despite focusing intensely on mark-to-market accounting issues over the last few months, the boards are still on track to meet that goal, Tom Jones, a board member of the IASB, said at the Reuters Global Financial Regulation Summit in London.

"I don't think this fair value issue has derailed it at all. We're quite prepared to delay other projects that aren't on the key list to make it," Jones said.

The London-based IASB sets accounting rules, known as International Financial Reporting Standards (IFRS), which are used in more than 100 countries.

Accounting rulemakers have been working for years to come up with common accounting standards, but last year decided to accelerate the process as the U.S. Securities and Exchange Commission proposed a road map that would require U.S. companies to use IFRS instead of U.S. Generally Accepted Accounting Principles (GAAP) by 2014.

That plan, however, is under an extended review by the SEC, as the administration changed shortly after its proposal.

But Jones said that companies and investors still expect a switch to one system of high-quality, global accounting standards.