convergence

(noun)

The act of moving toward union or uniformity.

Examples of convergence in the following topics:

  • Differences Between GAAP and IFRS and Implications of Potential Convergence

    • The convergence of accounting standards refers to the goal of establishing a single set of accounting standards that will be used internationally, and in particular the effort to reduce the differences between the US Generally Accepted Accounting Principles (US GAAP), and the International Financial Reporting Standards (IFRS).
    • Convergence in some form has been taking place for several decades, and efforts today include projects that aim to reduce the differences between accounting standards.
    • The goal of and various proposed steps to achieve convergence of accounting standards has been criticized by various individuals and organizations.
    • For example, in 2006 senior partners at PricewaterhouseCoopers (PwC) called for convergence to be "shelved indefinitely" in a draft paper, calling for the IASB to focus instead on improving its own set of standards.
    • Convergence is also taking place in other countries, with "all major economies" planning to either adopt the IFRS or converge towards it, "in the near future. " For example, Canada required all listed entities to use the IFRS from January 1, 2012, and Japan permitted the use of IFRS for certain multinational companies from 2010, and is expected to make a decision on mandatory adoption in "around 2012. "

  • Disadvantages of LIFO

    • This move has created a mandate to converge IFRS and U.S.

  • Standard-Setting Groups: SEC, AICPA, and FASB

    • Promote international convergence of accounting standards concurrent with improving the quality of financial reporting.

  • Introduction to GAAP

    • As of 2010, the convergence project was underway with the FASB meeting routinely with the IASB.

  • Introduction to IFRS

    • The IASB and FASB frameworks are in the process of being updated and converged.