What do you know about the FASB and IASB convergence projects?
The short-term convergence is an active agenda project conducted jointly by FASB and IASB — expected to result in one or more standards that will achieve convergence in certain areas. The project is limited to the differences between US GAAP and IFRS, where a high-quality solution seems achievable.
What is the current status of convergence between the FASB and IASB?
Currently, the FASB and IASB are conducting joint projects to address Revenue Recognition and Business Combinations. The short-term convergence project.
What is the new FASB revenue recognition rule?
The new model’s core principle for revenue recognition is to “depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” This principle was established by both the Financial Accounting …
What role does IASB play in efforts to converge accounting standards?
The International Accounting Standards Board (IASB), responsible for International Financial Reporting Standards (IFRS), and the Financial Accounting Standards Board (FASB), responsible for US Generally Accepted Accounting Principles (US GAAP), today jointly issued a converged Standard on the recognition of revenue …
What have IASB and FASB convergence efforts achieved?
In this opinion piece, former International Accounting Standards Board (IASB) member Paul Pacter describes the accomplishments of the convergence project undertaken in 2002 by the IASB and FASB. He says many standards have converged, and IFRS have been improved as a result of the process.
Is the revenue recognition project part of the IASB?
Revenue Recognition Project Update. The short-term convergence project. The short-term convergence project is an active agenda project that is being conducted jointly with the IASB, and it is expected to result in one or more standards that will achieve convergence in certain areas.
When did FASB release converged standard on revenue recognition?
The two standard-setting boards announced the release of the converged standard on the recognition of revenue from contracts with customers on Wednesday morning – the culmination of a project the FASB first initiated on its own in 2002.
Why are there different standards for FASB and IASB?
And some convergence projects either were discontinued or resulted in different IASB and FASB standards because, in the end, the two boards just could not agree. Some convergence projects continue to this day, including such major projects as revenue recognition, leases, and financial instruments.
