International Accounting Standards Board And Financial Accounting

1307 WordsOct 7, 20146 Pages
It all began on October 2002 where the International Accounting Standards Board and Financial Accounting Board signed a memorandum of understanding that has come to be known as the “Norwalk Agreement”. Here the two boards met and decided to make their standards fully compatible and put it into practice and once they conquer their goal, they have to make sure it is maintained. But before I divulge into details regarding the future and presently achieved goals of the convergence, I would like to throw some light on the history and background of the two boards involved. International Accounting Standards were formed between 1973 and 2001 by the board of the International Accounting Standards Committee (IASC). On 1 April 2001, the new International Accounting Standards Board (IASB) succeeded the IASC and over the duties for setting International Accounting Standards. The IASB is located in London and is an independent body for setting accounting standards. It comprises of 15 members from different countries, including the United States. Many accounting and private bodies include central banks and industrial financial companies, and other international and professional organizations around the world work towards its funding. When it held its first meeting it decided to retain the previously outlined International Accounting Standards and develop new standards which would be known as International Financial Reporting Standards (IFRS). The International Financial Reporting
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