FASB and IASB Convergence Projects
Countdown to Convergence
February 25, 2010 - This article provides a synopsis priority convergence projects in the FASB and IASB Memorandum of Understanding. Because the projects are active and subject to change, updates will be posted periodically to the online version of this article at journalofaccountancy.com. (Journal of Accountancy)
IFRS.com | 2008 Progress Report | FASB and IASB Project Updates
After their joint meeting in September 2002, the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued the Norwalk Agreement, in which they “each acknowledged their commitment to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting. At that meeting, the FASB and the IASB pledged to use their best efforts (a) to make their existing financial reporting standards fully compatible as soon as is practicable and (b) to co-ordinate their future work programs to ensure that once achieved, compatibility is maintained.”
In February 2006, the FASB and IASB issued a Memorandum of Understanding (MoU). The MoU set forth the relative priorities within the FASB-IASB joint work programs in the form of specific milestones to be reached by 2008.
In developing the MoU published in 2006, the Boards agreed on priorities and established milestones only to 2008, even though they knew that many of the major standards level projects would not be complete by that date. At their joint meeting in April 2008, the Boards again affirmed their commitment to developing common, high quality standards, and agreed on a pathway to completing the MoU projects, including projected completion dates.
The following is a description of the agreed-upon pathway for completing the MoU projects that discusses separately short-term convergence projects and major joint projects. Also described is the relationship between those MoU projects and the joint conceptual framework project, which is not formally part of the MoU work plan.
Completing the February 2006 Memorandum of Understanding:
A progress report and timetable for completion September 2008
The following links are to the IASB and FASB Project Pages that include project activities covered by the Memorandum of Understanding between the two Boards.
FASB Technical Plan and Project Updates