While many of the short-term and long-term convergence projects have been completed, currently, the boards have yet to finalize all of the technical pronouncements regarding Financial Instruments, Revenue recognition, and Leases.
The project scope includes differences in standards addressing recognition, measurement, presentation or disclosure. Any topic in which a specific accounting treatment would be permissible under one basis of accounting but would not be permissible under the other basis of accounting is included in the project scope.
Convergence would be achieved by the Boards adopting mutually accepted, high-quality standards where homogeneity and transparency are being applied internationally, leading to a firm global capital markets. The scope of the short-term convergence project is limited to those differences between U.
Factors that the Board considers in assessing topics for the agenda include a the possibility that resolution would increase convergence of standards worldwide, b the opportunities the topic presents for cooperation with other standard setters, and c whether appropriate and sufficient resources are available for a joint or other cooperative effort.
GAAP counterparts in areas such as scope, definitions, recognition and measurement requirements, and display and disclosure requirements. How to Write a Summary of an Article? Moreover, major achievements have been attained in convergence completion of short-term projects along the overwhelming support of the international community and stakeholders who wish to have ease of comparability cross-borders.
For example, some critics are concerned that convergence will increase the use of fair value accounting.
Before the s, convergence took the form of harmonization, the reduction of differences between the various accounting standards used internationally.
From inception, onvergence was initially slated to be completed byand then revised to June of ; however, setbacks currently place the timetable for the remaining convergence projects to mid Because of the nature of the differences, it is expected that a high-quality solution can usually be achieved by selecting between existing U.
In conclusion, global convergence has had major victories in attaining a globally accepted accounting standards, but it still has a few challenges ahead, specifically the SEC, who acknowledges IFRS is of high quality, but does not seem to think that the solution is the adoption of IFRS, but rather adopting some of its provisions.
What are their major problems? In my opinion, there are too many variables in play that are uncontrollable, as we are dealing with human beings who are raised differently, with different role models, ethics, and are part of various societies where cultures influence their way of being.
The Norwalk Agreement, first announced on September ofwas a paramount step towards a unified global accounting standard. The short-term convergence project is an active agenda project that is being conducted jointly with the IASB, and it is expected to result in one or more standards that will achieve convergence in certain areas.
S GAAP to have their own separate standards with numerous similarities. Some short-term projects and the corresponding actions taken are listed below.The scope of the overall IASB-FASB convergence project has emerged over time. The tables below reflect the current situation of the various projects.
Some of the projects listed are joint IASB-FASB projects that are not officially part of the Memorandum of Understanding (MoU) between the two boards, but they are projects that the boards.
July 29, - The Chairman talks about a new collaboration between FASB and IASB and outlines approach and progress in a number of projects related to convergence, leasing, revenue recognition, insurance and codification.
As we conclude the bilateral convergence program begun in by the FASB and the International Accounting Standards Board (IASB), the FASB has implemented a three-part strategy for seeking greater comparability in accounting standards internationally: As it undertakes standard-setting projects, the FASB carefully evaluates whether U.S.
IASB & FASB Convergence Project Revenue Recognition David ultimedescente.comtel Tuan Phan Geoffery D. Bartlett James L. Dodd Drake University ABSTRACT Accounting revenue recognition practices have a pervasive, profound impact on the financial.
The IASB and FASB signed a memorandum of understanding in which laid guidelines on their convergence projects and set short-term goals such as to issue converged standards on business combinations by The scope of the overall IASB-FASB convergence project has evolved over time.
The tables below reflect the current situation with the various projects. Some of the projects listed are joint IASB-FASB projects that are not officially part of the Memorandum of Understanding (MoU) between the two boards, but where the boards had nonetheless .Download