Accounting

The debate on effecting a uniform accounting standards has elicited global reaction. The United States through has made significant efforts to converge FASB with IASB.The increased trade volume across the world and efforts to curb economic crimes necessitates adoption of an homogeneous accounting and financial standards. The overriding theme in this case is whether convergence is achievable. There is evident logic in incorporating the two accounting standards. However, endorsement and convergence is the main problem. While  convergence do not impose jurisdiction or incorporation of IFRS on the accounting standards used by any firm or country, endorsement brings more legal liability and require commitment. In essence, countries, firms and different financial professionals differ on the basis of convergence versus endorsement.

The raging politics on the issue exhibit in-depth misconception on the concepts of convergence and endorsement. It is imperative that a uniform accounting and financial standard is created through collaborative approach of all stakeholders. The ever changing business environment, emerging socio-economic factors call for a sound accounting standard devoid of flaws and inclusive of all firms. It is worth to note that convergence of FASB-IASB will likely yield a highbred standard that captures the interest of the larger business community. Instead of moving towards IFRS it is proper to come to consensus through multidimensional research on the existing policies before creating one policy to cover all stakeholders. Other factors that need consideration include ease of application, compatibility with the economic performance of the country and information technology integration. Besides, the financial sector players need to be taken through intensive training on the potential of the merger and endorsement to secure the future of accounting standards.

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