The objective of this project is to eliminate a large number of differences between international financial reporting standards and US GAAP standards. The project, jointly led by FASB and IASB, was born out of an agreement reached by the two boards of directors in October 2002 (the “Norwalk” agreement). one. An agreement between the FASB and the SEC that allows foreign companies to use IFRS when submitting accounts to the SEC. Norwalk Agreement refers to a Memorandum of Understanding signed in September 2002 between the U.S. Standard Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).  The agreement is referred to as it was concluded at Norwalk. d. an agreement between the FASB and the IASB to harmonize and cooperate as quickly as possible with their existing standards to ensure their compatibility in the future. B. An agreement between the U.S. FASB and the U.K. Accounting Standards Board to converge their respective accounting standards as soon as possible.
What is the “Norwalk” agreement? a. An agreement… The Norwalk agreement refers to the agreement signed between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) in September 2002. Boards have decided to make their accounting standards compatible as quickly as possible and to maintain compatibility together in the future. This agreement is called the norwalk agreement, as the boards of directors had a joint meeting in Norwalk. c. An agreement between the President of the SEC and the European Commissioner for the Internal Market that allows EU companies to list securities in the United States without allowing a US vote on GAAP. Please note that the convergence project is coming to an end and that no new projects are on the agenda. As a result of these and other initiatives, FASB expects significant progress towards international convergence in the coming years. However, due to the magnitude of the differences and the complexity of some of the problems, the FASB believes that many differences between U.S. and international standards will remain well beyond 2005. (Until 2005, all STATE-owned enterprises listed in the EU will be required by the European Union to establish their consolidated financial statements in accordance with IASB standards.) Paul Beswick, the chief accountant of the U.S.
SEC, provided information on the SEC`s status regarding the introduction of IFRS in the United States. Detailed information on the progress of each project can be found on the project page. In a number of cases, projects have been abandoned as joint projects, and the IASB is pursuing projects independently, or the subject is being considered for a longer-term IASB research project. The IASB and FASB briefly discussed the date of joint Draft Memorandum of Understanding (MOU) to prepare for the planned issuance of an updated technical plan. Three projects were discussed in depth: financial instruments, non-continued activities and the framework. The IASB held a training meeting at which FASB staff provided information on the FASB project on investment real estate. The agreement contains a number of initiatives, including the removal of minor differences between U.S. and international standards, the decision to harmonize the future work programs of the two boards of directors, and a commitment to cooperate on joint projects.