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FASB and IASB current convergence

Explain the relationship between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB).

References to be used:
1. http://www.journalofaccountancy.com/news/20125579.htm

2. http://www.accountingtoday.com/news/FASB-Revises-Proposed-Changes-Financial-Instruments-Accounting-Standards-65700-1.html

Solution Preview

Step 1
The Financial Accounting Standards Board is a not for profit organization whose main purpose is to develop the generally accepted accounting principles in the USA. This organization works for the interest of the American people and has been designated by the SEC as the body responsible for setting accounting standards. The International Accounting Standards Board is the accounting standard setting body of the IFRS Foundation. It is responsible for developing the International Financial Reporting Standards and promoting the use of these standards.

Step 2
The relationship between the Financial Accounting Standards Board and the International Accounting Standards Board is that both are ...

Solution Summary

This solution explains how US GAAP and IFRS are different and how these differences should be reduced. The sources used are also included in the solution.

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