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Convergence of the International Financial Reporting Standards

The Financial Accounting Standards Board has undertaken several key initiatives to pursue the goal of convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, the Board conducts several joint projects with the IASB, and works with the IASB on the short-term convergence project.

REQUIRED:
Discussed the efforts made toward convergence of the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP) on the revenue recognition area.

Solution Preview

According to the FASB, "The objective of the Revenue Recognition project is to develop coherent conceptual guidance for revenue recognition and a comprehensive Statement on revenue recognition based on these [efforts made toward convergence]:

1. Converging U.S. and international standards on revenue recognition

2. Eliminating inconsistencies in the existing conceptual guidance on revenue recognition

3. Providing conceptual guidance that would be useful in addressing future revenue ...

Solution Summary

250+ words, with a reference, discusses efforts that have been made to reach a unified IFRS.

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