Financial Accounting Foundation puts money towards getting convergence projects done

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Financial Accounting Foundation puts money towards getting convergence projects done

158732730

The work to align US and international accounting standards on revenue recognition could be the first project to benefit from a Financial Accounting Foundation (FAF) announcement that it will contribute up to $3 million to the International Financial Reporting Standards Foundation to support the completion of international convergence projects.

The FAF, which oversees the work of the US’s Financial Accounting Standards Board (FASB), will give up to three payments of $1 million during 2014 to the International Accounting Standards Board (IASB), the IFRSF’s standard-setting body, as it continues to work on four joint accounting standards projects - revenue recognition, leasing, financial instruments (both classification & measurement and impairment) and insurance - with the FASB, which develops US Generally Accepted Accounting Principles (GAAP).

A statement from the FAF said its trustees made one previous contribution of $500,000 to the IFRSF in 2011, adding that technical staff from the FASB have also dedicated much of their time to convergence projects since 2002, the year in which that organisation and the IASB formally agreed to work together on bringing US GAAP and International Financial Reporting Standards and closer together.

Last November the FASB and the IASB separately authorised the preparation of a final draft of a converged revenue recognition accounting standard. This is due to come out before the end of March.

The aims of a new revenue recognition standard are to:

  • · Remove inconsistencies and weaknesses in existing revenue requirements.

  • · Provide a more robust framework for addressing revenue issues.

  • · Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets.

  • · Provide more useful information to users of financial statements through improved disclosure requirements.

  • · Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer.

more across site & shared bottom lb ros

More from across our site

The levies extended beyond the president’s ‘legitimate reach’, the Supreme Court ruled
While Brazil’s consumption tax overhaul led to a short-term spike in tax advisory demand, we are now in a period of ‘normalisation’ marked by decreased recruitment
The expanded firm will comprise roughly 8,500 employees, including 550 partners; in other news, Paul Hastings and Macfarlanes made senior tax hires
Meanwhile, one expert highlights the importance of separating Venezuela’s tax authority from direct political control after ‘lost decades and isolation’
With PMK 108, Indonesia has upgraded its tax transparency regime for the digital era, focusing on data quality, governance, and cross border exchange rather than expanding regulatory reach
In a popular LinkedIn post, Jeremie Beitel encouraged firms to invest in junior talent even if it doesn’t lead to their loyalty, though recruiters offered ITR a mixed assessment
Advisers who do not register for the new regime in time could be prevented from interacting with HMRC, the tax authority said
Valid pillar two objectives are still intact after the side-by-side agreement, but whether the framework is now settled is ‘a $64,000 question’, Morrison Foerster’s tax chair told ITR
Ian Halligan previously led Baker Tilly’s international tax services in the US
Exclusive ITR data emphasises that DEI does not affect in-house buying decisions – and it’s nothing to do with the US president
Gift this article