This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB Chairman comments on convergence

  • FASB (old) Image

29 May 2007

The 2006 annual report of the US Financial Accounting Foundation (under which FASB operates) includes comments of FASB Chairman Robert H Herz on FASB-IASB convergence efforts.

Mr Herz's comments are set out below. Here is the link to Download the Full FAF Annual Report  from the FASB website (PDF 3,328k).

What is the status of the convergence initiative with the IASB?

The FASB and IASB are making continued progress in our joint effort to enhance consistency, comparability, and efficiency in global capital markets through our convergence initiative. In fact, virtually all of our major projects are now being conducted jointly, and the Boards are devoting a majority of our time and resources to this effort.

In February 2006, the Boards published a Memorandum of Understanding that reaffirmed the Boards' shared objective of developing a common set of high-quality standards for both domestic and crossborder use. We continue to believe that ensuring that high-quality standards that provide credible, comparable, conceptually sound, and usable information to the global capital markets should be at the core of the FASB and IASB missions.

We also continue to work closely with the IASB to develop a common conceptual framework. Presently, the FASB and IASB are each guided by their own individual frameworks. While similar, these differ from each other in various respects, are incomplete, and are not up-to-date. The Boards believe that a common conceptual framework will improve the foundation and concepts that underlie global financial reporting and serve as a more effective guide in developing global financial reporting standards. Accordingly, during 2006, the FASB and IASB jointly published for public comment a consultative document setting out our preliminary views on the first two chapters of an enhanced conceptual framework.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.