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The idea of convergence first surfaced in the late 1950s in response to Globe War II economic integration showing that the concept of International Convergence of Accounting Standards is not new. At first, the convergence focused about the principles implemented in main funds markets around the globe. From the 1990s, the concept of harmonization was replaced by the notion of convergence plus the International Accounting Standards Committee was formed in 1973, which was the first international standards-setting body. The FASB along with the IASB have been working collectively toward convergence due to the fact 2002. The Economic Accounting Standards Board believes the ultimate goal of convergence is known as a solitary set of high-quality, international accounting standards that suppliers would use for monetary reporting. At this time, the collaborative efforts from the FASB and IASB is implemented to each develop U.S. GAAP and IFRS to eliminate the differences between the two. In November 2009, a joint statement showed the IASB along with the FASB reaffirmed a commitment to improving IFRS and US GAAP in achieving convergence. The strategy gave priority to the important Memorandum of Understanding projects for which they believe the need to have for improvement of IFRS and GAAP is most urgent. The projects include joint projects on economic instruments, income recognition, fair value measurement, as well as the consolidation of investment suppliers. After their meeting in April 2011, the boards are rendering this report to the progress of their joint convergence work. The IASB and FASB have taken the following actions considering that their report last November. They have finished the 5 projects, which reflected the completion of MoU projects, publication of standards that are converged or considerably converged on fair worth measurement, joint arrangements, and consolidated monetary statements. Most of the short-term projects have been completed such as share-based payments, non-monetary assets, inventory accounting, accounting adjustments, and fair value option. The FASB is developing proposals to align US GAAP with IFRS and that project is nevertheless in process. As far because the Revenue recognition goes, the principle in the IASB and FASB published a joint discussion paper that proposed only one income recognition model that was built to the concept that an entity will need to recognize income. The US GAAP has a broad range of requirements whilst the IASB has rather general needs, which leads to them to rely on US GAAP for particular guidance. On June 4, 2004, The FAF met with all the members in the International Accounting Standards Committee Foundation for your first time in New York City. The meeting began with all the FASB chairman, Bob Herz, around the convergence efforts with the two-standard-setting bodies. The chairman explained the goal of their convergence efforts and also the development made so far. FASB and IASB have a number of standard projects and have agreed to your program for future alignment of their technical agendas. The article in the FASB report explains how their respective methods for reaching their standard convergence goal and also the obstacles they face collectively in meeting that goal. Prepare to obtain VPN Security Specialist Examwith Examskey, world class rehearse exam software. Training material for IP Communications Support Specialist Examincludes as much as possible you need.
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