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For many years, individual countries created their own

rules and regulations for company financial accounting

and reporting. As the world became more global, problems

began to arise. A company could make a profit for the year

if the rules in its own country were applied, but this could

turn into a loss if another country’s rules were used.

To prevent this confusing and misleading state of

affairs, standards were issued by the International Accounting

Standards Board (IASB). Since 2002, the standard

setter in the United States, the Financial Accounting

Standards Board (FASB), has been actively engaged with

the IASB in attempting to converge U.S. regulations with

international accounting standards. This book describes:

• The process for setting accounting regulations in the

United States

• Attempts to establish international standards and

the barriers confronted

• U.S. involvement in international activities through a

process known as convergence

• Differences that have halted convergence and the

U.S. strategy

• Frauds and questionable activities and describes the

FASB’s efforts to ensure that financial statements do

not mislead their users