International Convergence of Accounting Standards-Perspectives from the FASB on Challenges and Opportunities

Herz, Robert H., Petrone, Kimberley R. | January 1, 2005

Convergence of international accounting standards is not a new initiative at the Financial Accounting Standards Board (FASB or Board); in fact, the FASB has pursued international “convergence” for almost half of its more than thirty year existence.’ The FASB’s international activities initially fell under the heading of harmonization, or internationalization, of accounting standards. Today those activities are referred to as convergence.Whatever the term, the Board has long held the view that a single set of high-quality international accounting standards is desirable because its use will improve international comparability of financial information; reduce costs to financial statement users, preparers, auditors, and others; and, ultimately, help promote the efficiency of the world’s capital markets. To that end, the FASB has and continues to invest considerable time and resources in convergence efforts.