Convergence project between iasb and fasb

As the trustees of the IFRS Foundation said recently in the report of their Strategy Review: As the body tasked with achieving a single set of improved and globally accepted high quality accounting standards, the IFRS Foundation must remain committed to the long-term goal of the global adoption of IFRSs as developed by the IASB, in their entirety and without modification.

The IFRS is more dynamic and is continuously being revised in response to an ever-changing financial environment. There is some opposition to the convergence from all stakeholders involved, including accounting professionals CPAs, auditors, etc. The report described the challenges of adopting IFRS, rather than making recommendations on whether international accounting standards should be used for domestic companies.

That all changed—and quite dramatically—with two events. After a decade of debate, the standard-setting bodies published divergent lease reporting standards — ASU and IFRS 16 — in Convergence Pros and Cons Arguments for the convergence are: a renewed clarity c transparency d comparability between different countries on accounting and financial reporting This will result in an increase of capital flow and international investments, which will further reduce interest rates and lead to economic growth for a specific nation and the firms with which the country conducts business.

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