Standards: Convergence (#50)

In this podcast episode, we discuss the ongoing convergence project between the FASB and IASB. Key points made are:

  • The FASB and IASB have been working on convergence, which is the elimination of material differences between GAAP and IFRS.

  • Either party could adopt the position of the other party.

  • In some cases, the FASB and IASB may jointly undertake projects to improve both of their positions.

  • A recent example of convergence is the capitalization of interest during construction projects.

  • There is a tendency for the outcome to lean more in the direction of IASB positions.

  • It is not likely that the FASB will go away; it will find a reason to continue to exist.

  • The current situation is comparable to what the AICPA went through, when standard setting was shifted to the FASB.

Related Courses

GAAP Guidebook
IFRS Guidebook