FASB and IASB Convergence: Implications for Investment Funds
In February 2006, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) released a memorandum of understanding renewing their commitment to the convergence of U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) and identifying current convergence projects.
Since then, there have been other significant changes that may move the U.S. closer to the use of IFRS. In August 2007, the Securities and Exchange Commission issued a concept release requesting public comment on allowing domestic issuers, including registered investment companies, to file financial statements prepared under IFRS. About one month ago, the SEC proposed a road map that could require U.S. issuers to use IFRS beginning in 2014. Under the plan, the agency said it would decide in 2011 "whether adoption of IFRS is in the public interest and would benefit investors."
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