In July 2007, the Financial Accounting Standards Board (FASB) issued a statement clarifying its commitment “to the convergence of high-quality accounting standards worldwide, as demonstrated by its partnership with the [International Financial Accounting Standards Board (IASB)] to improve financial statement presentation.”
The move to unify U.S. and international accounting standards—spurred by an increasingly global economy and by Enron and other accounting scandals—has been hailed by many observers. But some experts, including faculty at Emory University’s Goizueta Business School, say the move toward worldwide accounting standards won’t necessarily be a panacea for accounting shenanigans and may even carry threats of its own.
In July 2006, as part of a goal of integrating U.S. and European Accounting Standards, the FASB proposed the Conceptual Framework for Financial Reporting. The FASB expects the result to be a single document that is accepted by both the FASB and the IASB; one that will replace the FASB’s series of Conceptual Statements and the IASB’s own Framework for the Preparation and Presentation of Financial Statements, which describes the basic concepts by which financial statements are prepared.
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