Submitted by: Submitted by princessc
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Pages: 2
Category: Business and Industry
Date Submitted: 05/18/2011 03:25 PM
Introduction
Relationship between IASB and FASB
The basic objective of issuance of International Accounting Standard
Board is to set single set of accounting standards that are adopted
internationally to bring consistency , transparency , stability , and
comparability in international accounting . Whenever the issue of
uniformity in International accounting is raised , the issue of
convergence of local standards of a country with IFRSs / IASs takes the
central stage . The year 2011 is important date in this respect . It is
hoped and aimed that by 2011 IFRSs will get converged with accounting
standards of member countries of IASB . But the issue of convergence of
US GAAP with IFRS though has gained a vigorous momentum , but is often
interrupted by issues of conflicting views supremacy or one- upmanship .
In this write up it has been tried to bring out the relationships
between the two boards , IASB and FASB , with regard to matters connected
with US GAAP with IFRS .
a ) History of relationship between IASB and FASB
Norwalk summit
The relationship between IASB and FASB took a big leap in September 2002
when an agreement between FASB and IASB was reached at Norwalk with an
objective to develop compatible high standards for domestic reporting as
well as for matters concerning cross b reporting of events and
transactions finding their way in the financial statements . In to
further the efforts of convergence a `joint short term convergence
project ' was under taken by both the boards of FASB and IASB .
A press release , issued over reaching September 2002 agreement , states
that ``The joint short term convergence project will require both Boards
to use their best efforts to propose changes to US and international
accounting standards that reflect common solutions to certain
specifically identified differences (FASB and IASB News Release ,
October 29 , 2002 .
The intent of both boards was very clear but the road...