The Financial Accounting Standards Board (FASB) is a private, non-profit organization and its primary purpose is to create and develop generally accepted accounting principles (GAAP) within the United States. The body that designated the Financial Accounting Standards Board as the organization accountable for setting accounting standards for public companies in the United States. The overall purpose of accounting standards is to identify proper accounting practices for the preparation and presentation of financial statements. Accounting standards create a common understanding between the preparers and users of financial statements particularly on how items are accounted for or treated.
The International Accounting Standards Board (IASB) is the independent, accounting standard-setting body of the International Financial Reporting Standards (IFRS) foundation. It was founded on April 1, 2001 as the successor of the International Accounting Standards Committee (IASC). It is accountable for developing International Financial Reporting Standards (IFRS) and for promoting the use and application of these standards. The objective of the International Accounting Standards Board is to raise the quality and consistency of financial reporting and to have a platform of high quality and improved standards.
The article discusses about the plan of the International Accounting Standards Board and the Financial Accounting Standards Board of the United States to converge International Financial Reporting Standards with the generally accepted accounting principles of the United States. They have been talking and conducting meetings for the past decade to push through with the plan. Both of the bodies are under pressure to finish their plan on agreeing about a set of globally accepted accounting standards by mid-2013. But by looking at their progress over the past decade, it would seem to be rather impossible to meet the deadline by mid-2013.
The International Accounting...