Once again, we're writing about convergence. But this time it's not about whether IFRS should replace GAAP or whether the IASB should replace FASB. Rather, we're writing an open letter to Mary Schapiro and the other SEC commissioners, as well as Chief Accountant Jim Kroeker, about the passel of standards on the front burner at the two boards.
In 2002, FASB and the IASB agreed in the "Norwalk Accord" to produce convergent standards. It was a shrewd effort to produce a single set of standards without raising the political and institutional issues associated with merging the two boards into one entity.
The accord was followed a few years later with a "Memorandum of Understanding," now called the "MoU," that identified specific major projects that the boards would aim to finish by specified deadlines. At the time, those deadlines must have seemed a long way off.
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