Question

The IASB and FASB are pursuing a single, converged conceptual framework. The United States has a good start with SFAC No. 8. What additional changes should FASB make to further improve its conceptual framework?

Answer 1

the International Accounting Standards Board (IASB) and its predecessor, the International Accounting Standards Committee (IASC),
have been working to develop a set of high-quality, understandable, and enforceable International Financial Reporting Standards (IFRS)
to serve equity investors, lenders, creditors, and others in globalized capital markets. When the IASB took over from the IASC in 2001,
few countries had adopted International Accounting Standards (as IFRS were then called) even for cross-border public sales of securities, let alone for domestic public companies.
That all changed—and quite dramatically—with two events. First, in 2000, the International Organization of Securities Commissions (IOSCO)
endorsed IFRS for cross-border securities offerings in the world’s capital markets. Then, in 2002, the European Union made the bold decision to require
IFRS for all companies listed on a regulated European stock exchange starting in 2005. Those events started a snowball rolling,
to the point where today roughly 100 countries require IFRS or a national word-for-word equivalent for all or most listed companies.