Question

What is the status of the convergence efforts? What is the role of the United States standard setters in this effort?

Answer 1

Status of the convergence efforts:-

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 agreed to work jointly on the project.

Full details of progress on each project can be found on the individual project page for that topic. In a number of cases, the projects have been discontinued as joint projects and the IASB is continuing the projects in its own right, or the topic will be considered for a longer-term IASB research project.

Roll of Convergence Efforts in United States Standred:-

Accounting standard-setting can be improved by focusing more on the underlying objective of the accounting that is being addressed. Similar transactions should receive similar accounting. While both the IASB and the FASB do identify key principles and objectives, further work is still needed to better clarify the principles underlying all existing standards. This will not be easy. The issues that await resolution are extremely complex. These include a number of issues that will be covered in our upcoming off-balance sheet study including pensions, leasing transactions, consolidation practices and more. I'm delighted that the IASB has these areas on its radar screen, but realize that there are no easy answers and this will be tough work.