Norwalk Agreement Essay Example | Topics and Well Written Essays - 250 words

Norwalk Agreement - Essay Example The FASB sets the accounting standards in the US, while the IASB performs a parallel function on an international level. Subsequently, the FASB and the IASB met on several occasions to reaffirm their commitment to the earlier agreement. This they did so in April and October of 2005 and on February 27, 2006 reconvened for the purpose of drafting a blueprint of convergence between the FASB’s GAAP (Generally Accepted Accounting Principles) and the IASB’s IFRS (International Financial Reporting Standards), to be implemented between 2006 and 2008 (Gibson 65). Short-term topics were laid out on the table subject to examination by both or individually by either of the parties as well as major topics. In July 2007, performance reporting was tackled where a proposal to change the layout of the face of financial statements was made. Recent events, such SEC’s announcement of acceptance of IFRS in lieu of GAAP and an agreement signed by Bush allowing use of IFRS instead of G AAP, show a likelihood of adoption of a substantially modified IFRS and the elimination of the US GAAP (Gibson 65; Fletcher 1-4). References: (2002) The Norwalk Agreement. Fletcher, Leslie. Update on the Norwalk Agreement: Progress Towards IFRS?GAAP Harmonization. 29 October 2009.