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The U.S. Convergence Toward Iasb

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The U.S. Convergence toward IASB This paper will touch on some key points, relationships, differences, and issues concerning the FASB and IASB that exist in the convergence from FASB to IASB in the U.S. They both were created to improve regulations of accounting standards, and uphold the integrity of the financial statements related to the accounting process. In the world we live in accounting standards are essential for the world economy to run smoothly. We have seen over the past decade what can happen when the standards aren’t’ used properly, or used at all. The Eron scandal, the collapse of markets in some countries like Greece, and the 2008 recession in the U.S. just to name a few examples of why they are so important. There are boards worldwide to oversee that accounting standards are being properly implemented, this paper will be concerning the two most used, the FASB, and the IASB. These boards use different accounting concepts and standards for financial reporting that guides many agencies and company’s in their day to day operations. Some examples found in the public who must rely on these standards are issuers, auditors, and any users of financial information. The International Accounting Standards Committee was from in the 70’s as the first international standards board created. Later when accounting practices were under much criticism; especially in the U.S., IASC became a self-governing international standard setter known as the International Accounting Standards Board (IASB). Since then there has been a worldwide acceptance to use the IASB with more than 100 countries; including the European Union, adopting them as their standard setters, who require a permit to use the International financial reporting standards (IFRSs) issued by the IASB. The crash of 1929 in the U.S. created a huge concern among public and investor confidence in the