Working towards Convergence between US GAAP and IFRS

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The International Accounting Standards Board (IASB) and the Financial Standards Accounting Board (FASB) in the United States are working towards convergence between US GAAP and the IFRS, which are the two major accounting standards in the world. Most of the other nations in the world with their own accounting standards are also working towards convergence. The process has been ongoing for several years, and the organizations involved issue updates periodically in order to ensure that both the accounting profession and the general public are aware of the state of the convergence process. One such update was issued in June 2010 (, 2010). This statement covered a number of different topics. The organizations had set a target date of June 2011 to have resolved the major convergence issues that were identified in the 2006 Memorandum of Understanding. The June 2010 announcement retains this target date for most of the projects, but has set a new target date of June 2012 for some of the projects, in recognition of the challenges inherent in the convergence process. The announcement also mentioned that there would be a new prioritization process that the bodies expect will improve the convergence process. Also, a change to the process of consultation was made. The consultation process seeks stakeholder input that helps the bodies to set effective dates and transition methods, so that corporate accounting departments are in better position to implement convergence items
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