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State Board Report

February 2014

The Financial Accounting Foundation will make a non-recurring contribution of up to $3,000,000 this year from its reserve fund to the International Financial Reporting Standards Foundation, in order to help complete some of the accounting standards convergence projects of the International Accounting Standards Board and the Financial Accounting Standards Board. These projects cover accounting for revenue recognition, leasing, financial instruments (both classification and measurement and impairment) and insurance.

The FAF trustees had contributed $500,000 to the IFRS foundation in 2011 and have provided technical staff’s time over the years. The FAF trustees decided to make the contribution after discussion with the Securities and Exchange Commission. FAF Chairman Jeffrey J. Diermeier commented: “Completing these joint projects clearly is in the best interests of FASB stakeholders, including all of those around the world who invest in U.S. capital markets.”

In response to the SEC’s Final Staff Report Work Plan on IFRS, issued in 2012, the IFRS Foundation trustees stated: “We note that, while 20-25 percent of the total seats in the Foundation’s different bodies are currently held by the U.S., the U.S. contributions amount to less than 10 percent of the total country contributions to the Foundation’s budget. Ultimately the lack of public funding in the U.S. can only be resolved by the U.S. authorities themselves, directly or indirectly.”

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