FASB Research case
1 In Norwalk, Connecticut, on September 18, 2002, FASB and IASB came together to discus accounting standards and the certain need to put together a single working set of standards. The main goal was to achieve current compatibility and later become one working system. FASB and IASB are trying to complete their goal while staying consistent, and putting diligence into their high priority issues. These issues are as follows: undertake a short-term project to become as compatible as possible, remove other differences that are a challenge to comparability, continue projects that they are both working on, and encourage other accounting interpretations to match up with their dealings.
The short-term project was the initial step in getting the two standards of GAAP and International Financial Reporting Standards (IFRS) to be unified. To keep things going quicker, the first focus of the Norwalk agreement was on a short term focus, removing as many differences in standards as possible in a short time period. After the short-term plans, anything starting in 2005 would have a focus on extensive projects. The plan is to work together to eliminate future differences. The third priority in the Norwalk Agreement is to continue working on projects together, keeping consistent and matching standards. Once the two boards have gotten together there will not be any more discrepancies. The last priority of the two boards is to expand the harmonization of subsidiaries.
The Norwalk Agreement is an important part of the steadily globalizing nation. FASB and IASB are working together and one day become one simple set of standards. The main priorities of short term and long term convergence are being consistent while working together and encouraging subsidiaries to pick up the same goals. These priorities are setting the foundation for a new set of standards to come to the United States.
2 The Short-Term Convergence Project is one of the most important parts of...