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FASB Moves Forward on Revisions, Convergence

Changes to insurance accounting and other FASB rules are under consideration.

Changes to accounting standards were recently reviewed by the Financial Accounting Foundation, which found that the

Changes to accounting standards were recently reviewed by the Financial Accounting Foundation, which found that the FASB interpretation No. 48, accounting for uncertainty in income taxes, would give investors and those who rely on financial statements "more consistent and useful information."

The chairman of the Financial Accounting Standards Board, Leslie F. Seidman, commented that the group was happy with the findings but that it currently had no plans to separately review the FIN 48.

"The Trustees believe that this process provides critically important feedback in the standard-setting process and we're pleased with the overall result," stated John Brennan, the FAF Board of Trustees chairman. He vowed that the board would take its lessons "from this first effort and use it to improve the process as we move forward with our next accounting standard reviews."

Another FASB issue received attention earlier this month. The Journal of Accountancy reported that the effort to converge FASB and International Accounting Standards Board rules on insurance contracts was becoming a bit of a struggle. The news source quoted Seidman, who noted that it had been difficult to reach "consistent conclusions" on measuring the liability of insurance contracts and separating the various investment factors.

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