As the globalization of business continues, it becomes more and more important for financial accounting standards to be uniform across countries. The FASB and the International Accounting Standards Board are working jointly on convergence to develop a common set of standards that would be accepted worldwide. These standards, called the International Financial Report Standards, ultimately will be applicable to for-profit businesses in more than 150 countries, including the United States (the impact of international standards on not-for-profit organizations is uncertain at this time).

Needless to say, a large number of details must be worked out, and the differences between current US and international standards must be resolved before these new standards would be able to be put into effect.

• What do you think about the consolidation of Financial Accounting Standards?
• Should financial accounting standards applicable to for-profit businesses apply worldwide, instead of country by country?
• Should not-for-profit organizations be subject to international standards?

Answer rating: 100% (QA)

The consolidation of Financial Accounting Standards as seen in the convergence efforts between the FASB and the International Accounting Standards Board has both advantages and challenges 1 Advantages ... View the full answer