Standards: Convergence (#50)
/In this podcast episode, we discuss the ongoing convergence project between the FASB and IASB. Key points made are:
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The FASB and IASB have been working on convergence, which is the elimination of material differences between GAAP and IFRS.
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Either party could adopt the position of the other party.
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In some cases, the FASB and IASB may jointly undertake projects to improve both of their positions.
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A recent example of convergence is the capitalization of interest during construction projects.
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There is a tendency for the outcome to lean more in the direction of IASB positions.
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It is not likely that the FASB will go away; it will find a reason to continue to exist.
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The current situation is comparable to what the AICPA went through, when standard setting was shifted to the FASB.