The Process Towards Global Accounting Standards

1. Abstract Financial reporting has experienced one of the biggest revolutions in history with the introduction of International Financial Reporting Standards (IFRS) in over 100 countries across the world. With the U.S. as on of the resist big exceptions sticking to their own national GAAP, the IFRS are bound to be the lingua franca of the international accounting world. However, starting with the co-signed Norwalk capital of New Hampshire in 2002, major efforts between the Financial Accounting Standards work over along (FASB) and the International Accounting Standards Board (IASB) have cleared the steering towards a convergence between both standards. This paper leave throw a light on the process towards a global accounting standard by reviewing its most valuable steps, determine remaining obstacles, and lastly gives a critical expectancy about long-term assets and drawbacks. 2. Introduction Ten years ago, harmonization of worldwide accounting standards was considered an unachievable, yet worthwhile goal. Today, everyone speaks about convergence and its only a matter of time till the Securities and change over Commission (SEC) will allow, or even require, to report simply in IFRS on U.S. stock exchanges - a last rampart towards the victory of IFRS. What has happened?

In 2002, the FASB and the IASB joined forces, pledging to work towards a private set of high-quality global accounting standards by signing the Norwalk harmony in their historical joint meeting, promising to make their breathing financial reporting standards fully compatible as soon as practicable . In 2005, the SEC published a roadmap, containing a timetable to remove the reconciliation of foreign standards to U.S. GAAP on U.S. stock exchanges . In 2007, following a landmark suggestion to eliminate the requirement for non-U.S. companies that use IFRS to reconcile to U.S. GAAP brocaded an important question: If foreign private issuers have the survival to use IFRS, why shouldnt U.S. companies have the same... If you want to get a full essay, order it on our website: Orderessay

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