The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have committed to work together to develop future standards jointly (FASB, 2011). Nonetheless, the key differences will have to be resolved and many believe the FASB will ultimately adopt international standards completely. This report seeks to discuss the US situation on the adoption of IFRS (International Financial Reporting Standards, as prescribed by IASB) and the possible effect of adoption on non-public businesses and the public?
In September, 2002, one of the most significant changes in the future direction of the United States’ accounting regulations occurred during a joint meeting of the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The meeting concluded with the Norwalk Agreement that articulated the commitment of both renowned boards to converge their standards into a single set of high quality global accounting standards (FASB and IASB, 2002). Since that meeting, the International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP) have been gravitating towards one another.
In the United States of America, the Financial Accounting Standards Board (FASB) currently has the jurisdiction to set accounting standards. The
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