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IASB And FASB Convergence Project

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IASB And FASB Convergence Project
IASB and FASB Convergence Project
To compete in a global economy with the emergence of multinational corporations financial reporting requires operators to understand the accounting practices used by the company, the language of the country in which the company exists, and the currency utilized by the corporation to prepare its financial statements and in turn to attract investors and creditors to invest in or lend money to companies. To harmonize accounting standards among countries, The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently working on a joint venture known as the convergence project pronounce in 2002 (Schroeder, Clark, & Cathey, 2011).
The International Accounting Standards Committee was formed in 1973 as the first international standards settlers and becoming an independent international standards settler in 2001. Since 1973 the Financial Accounting Standards Board (FASB) has been designated for the establishments of financial accounting that regulates the preparation of financial reports by non-governmental entities. Those standards are identified as authoritative by the Securities and Exchange Commission (SEC) …show more content…
GAAP and IFRSs by undertaking projects that both boards would address contemporaneously with the encouragement of the respective bodies to coordinate the activities and also its progress. The goal of the project was to attain compatibility by identifying common high-quality results. In 2008 the guidelines to lead to the use of International Financial Reporting Standards by US issuers beginning in 2014 include milestones such as the improvement of accounting standards, funding of the International Accounting Standards Committee Foundation, improved ability to use interactive data for IFRS reporting, improved education and training in the United States (Schroeder, Clark, & Cathey,
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