Updated IASB-FASB convergence agreement
27 Feb 2006
The US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have published a Memorandum of Understanding (MOU) that reaffirms the boards' shared objective of developing high quality, common accounting standards for use in the world's capital markets.
Both the FASB and the IASB note that removing the current reconciliation requirements will require continued progress on the boards' convergence programme. Accordingly, the MOU sets out milestones that the FASB and the IASB believe are achievable... The boards agreed that trying to eliminate differences between standards that are both in need of significant improvement is not the best use of resources. Instead, new common standards should be developed. Consistent with that principle, convergence work will continue to proceed on the following two tracks:
The goal by 2008 is to reach a conclusion about whether major differences in the following few focused areas should be eliminated through one or more short-term standard-setting projects and, if so, to complete or substantially complete work in those areas. Topics for short-term convergence include:
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- Press Release (PDF 44k).
- Full Text of Memorandum of Understanding (PDF 68k).