As explained in the textbook and FASB article “Comparability in International Accounting Standards— A Brief History” located in the topic Resources, the convergence of accounting standards worldwide has been considered for at least 50 years. In 2002 an official convergence project was created to meld US GAAP and IFRS. While many changes have been made over the years, total convergence has not been possible.
Conduct appropriate research to answer the following questions about convergence, specifically in the US.
- Should the US continue to work for convergence of US GAAP and IFRS? Why or why not?
- What do you perceive to be the biggest stumbling block in convergence and why?
- Who needs to take the lead on convergence and why: FASB? SEC? Other?