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.