The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) set out to complete their ambitious goal of convergence before the year of 2015. The author provides an outline of these efforts, emphasizing the importance and ramifications of International Accounting Standards (IAS) as a means to globally improve quality and clarity of financial reporting across financial sectors. An extensive review of pertinent literature is given, visualizing the two-pronged approach of converging global accounting standards while continuing to improve the US Generally Accepted Accounting Principles (US GAAP).
As no significant agreement has been implemented since 2008, the main areas of interest to this date remain income tax, revenue recognition, leases, and financial instruments. The present work puts in perspective the roadmap by the Securities and Exchange Commission (SEC), whilst assigning pivotal roles in the harmonization process to Certified Public Accountants (CPAs) and Chief Financial Officers (CFOs). The author offers a conceptual framework and strategies for the successful completion of the convergence project, adding special emphasis on business mergers and taking a strong position on the active involvement of major players and stakeholders.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Introduction
- Literature Review for Worldwide Acceptance
- Revenue Recognition and Extraordinary Items
- Harmonization and Quality
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the ongoing convergence process between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), aiming to shed light on the challenges and opportunities associated with achieving global accounting standards. The author explores the progress made in aligning U.S. GAAP with IFRS, highlighting key areas of difference and proposing solutions to expedite the convergence process.
- The convergence process between the IASB and the FASB
- Challenges and opportunities of aligning U.S. GAAP with IFRS
- The role of stakeholders in influencing convergence
- The importance of quality in financial reporting
- The impact of convergence on accounting professionals
Zusammenfassung der Kapitel (Chapter Summaries)
- Abstract: This section provides a brief overview of the paper's main arguments, highlighting the need for convergence between the IASB and the FASB and identifying key areas of challenge, such as income tax and financial instruments.
- Introduction: The introduction outlines the goals of the convergence process, emphasizing the transition from U.S. GAAP to IFRS. It describes the phased approach taken by the boards and the importance of achieving mutual agreement on accounting standards.
- Literature Review for Worldwide Acceptance: This chapter explores the efforts of various entities towards the convergence project, highlighting the timeline of events and the commitment of the U.S. to worldwide accounting standards. The author cites evidence of this commitment through agreements signed between the U.S. and the European Union.
- Revenue Recognition and Extraordinary Items: This chapter examines the issue of revenue recognition, particularly in cases where customers have the right to return products. The author delves into the complexities of accounting for returns, citing the Financial Accounting Standards Board's (FASB) Statement No. 5, Accounting for Contingencies, as well as other relevant accounting standards.
Schlüsselwörter (Keywords)
This paper focuses on the convergence of accounting standards, particularly the harmonization of U.S. GAAP with IFRS. It explores key themes related to global accounting standards, stakeholder involvement, quality of financial reporting, and the impact of convergence on accounting professionals. Key terms include convergence, IASB, FASB, U.S. GAAP, IFRS, revenue recognition, financial instruments, and quality of financial reporting.
- Quote paper
- Gaberella Green (Author), 2012, Convergence with Accounting Standards, Munich, GRIN Verlag, https://www.grin.com/document/272864
