d. an agreement between the FASB and the IASB with regard to the speediest possible harmonization and cooperation with their existing standards in order to ensure their compatibility in the future. The objective of this project is to eliminate a large number of differences between international accounting 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). B. An agreement between the U.S. FASB and the U.K. Accounting Standards Board to bring their respective accounting standards together as quickly as possible. Paul Beswick, Senior Accountant of the United States A few years later, the SEC announced its support for a Memorandum of Understanding – norwalk`s agreement – between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board. This agreement, reached in Norwalk, Connecticut, established a common obligation to develop compatible accounting standards that could be used for both national and cross-border financial reporting. In a following Memorandum of Understanding, FASB and IASB agreed that a common set of high-quality global standards would remain their long-term strategic priority and established a plan to align the financial information of U.S. issuers under U.S.
GAAP with those of companies using IFRS. Between 2005 and 2006, the number of foreign private issuers who registered with the SEC using IFRS increased from a handful to 110, and the SEC expects that number to continue to increase. In February 2006, SEC President Christopher Cox reaffirmed the SEC`s commitment to a set of high-quality accounting standards accepted worldwide and paved the way for the establishment of U.S. IFRS or US-GAAP accounts. In October 2002, the FASB and the International Accounting Standards Board (IASB) announced the issuance of a Memorandum of Understanding (“Norwalk Agreement”) which is an important step in formalizing their commitment to the convergence of U.S. and international accounting standards. The Norwalk agreement has been updated several times since 2002, but always with the aim of two standards that have been in principle, if not worded, converged. The IFRS-US-GAAP convergence approach has been repeatedly supported by global financial leaders such as the G-20, which is an important step towards a single set of global accounting standards. One of the main objectives of the IASB and the IFRS Foundation, under which the IASB works, was almost from the beginning to involve the United States. In a plenary address to the 2002 World Congress of Accountants, Paul Volcker, the Foundation`s first president of directors, said: “I don`t think it`s reasonable today to one day defend the position of the United States.