On Monday, the FASB and IASB issued a memorandum of understanding in which they laid out a detailed work plan to narrow differences between their standards - with a goal of substantially completing this process in eleven specified areas by 2008 (and take a hard look at ten other areas).
For those following this important development closely, you know that the SEC's willingness to downsize its requirement that non-US issuers fully reconcile their financials when registering securities in the US is conditioned on this convergence effort. Reconciliation is unpopular in the European Union - but convergence hasn't been widely popular either as there are concerns that it could lead to the creation of overly theoretical accounting standards. Learn more in our "Globalization of Accounting Standards" Practice Area.
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