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

Public country-by-country reporting is exposing multinational tax data to investors, journalists and competitors, creating fresh risks for businesses
Pillar two compliance is creating unprecedented data demands for multinational tax departments, making closer collaboration with FP&A teams essential for accurate reporting and audit readiness
Among the arrivals is Andrew Howell, who leaves scandal-hit PwC Australia after representing PepsiCo in a high-profile TP dispute
ITR's podcast examines whether the big four have overarching cultural issues and assesses the competitive threat of technology-backed transfer pricing firms
The UK advisory firm has seen its global revenues expand by £27.2m following its listing and acquisition of Baker Tilly South-East Europe
Tax-trained John Sams, previously the firm’s CFO and COO, was appointed after a rigorous process, KPMG said
From Mauritius substance rules to Kenyan SEP tax and South African anti-avoidance measures, businesses must navigate growing scrutiny of cross-border IP structures in Africa
ITR spoke to multinationals, advisers and software providers about a June 30 deadline defined by faulty portals, high compliance costs and hard lessons
After years of onerous pillar two prep, businesses will be galled in seeing tax revenues outweighed by compliance costs
Tax advisers should revisit India secondment arrangements after the EY US ruling strengthened the Centrica precedent and raised fresh withholding concerns
Gift this article