FASB and IASB Cooperate to Catalyze Convergence

The Financial Accounting Standards Board and the International Accounting Standards Board announced a set of projects to speed up the 2006 understanding on convergence between US GAAP and International Financial Reporting Standards. The first set of issues are consolidations, fair value measurement and revenue recognition. Another set of issues such as defining the equity side of the accounting equation (liabilities vs. net worth accounts), earnings per share, joint ventures and income tax timing issues are also in the works.

Apologies to sophomore and junior accounting majors, the potential exists for a truly gruesome CPA exam section on financial reporting in the near future if applicants have to know both international and US GAAP. Add the coming XBRL tide and only a serious recession will be putting accounting majors into employment trouble any time in the near future.