FASB CONVERGENCE WITH IASB

Financial Accounting Standards Board (FASB) functions to improve financial reporting for the benefit of investors and other users of financial information in U.S. capital markets. It sets highest-quality standards, which collectively are known as Generally Accepted Accounting Principles (GAAP). These standards  provide users of financial statements with information that is clear, useful, and relevant to investor’s needs, while considering whether the expected benefits of that information justify the costs of providing and using it. The FASB believes that the high-quality standards it develops will continue to influence the shape and future direction of international standards, as they have for more than 40 years. As it undertakes standard-setting projects, the FASB needs to carefully evaluate whether U.S. financial reporting would be improved by implementing approaches consistent with particular IFRS standards. This also would enhance international comparability for the benefit of investors and other capital market participants. This evaluation happens on a standard by standard basis.