Since 2002’s Norwalk Agreement, convergence between the standards set by the Financial Accounting Standards Board (U.S. GAAP) and the standards set by the International Accounting Standards Board (IFRS) has been a hot topic of conversation.
The purpose of this convergence is to develop a set of “high-quality” international standards to ease comparison and analysis among companies operating in different countries. The FASB and IASB collaborate on joint projects to achieve this goal. The completion of these joint projects will allow the two sets of standards to gradually merge together to ultimately be the same or at least very similar. The goal, eventually, is to allow the FASB to adopt IFRS with little transition.
It might seem like this project has been has been going on forever with no end in sight. However, both groups have been working diligently to complete various projects, one topic at a time. On the horizon for 2013 are the following projects and their status:
1. Investment Companies – Final Document Q1 2013
2. Consolidation: Policy & Procedures – Final Document Q2 2013
3. Revenue Recognition – Final Document Q2 2013
4. Leases – Exposure Draft Q2 2013
5. Insurance Contracts – Exposure Draft Q2 2013
6. Classification and Measurement – Comment Deadline Q2 2013
7. Impairment – Comment Deadline Q2 2013
8. Hedging – Currently no timeline
As the FASB issues new Accounting Standards Updates, it is working to eliminate the differences between U.S. GAAP and IFRS.
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