Norwalk Agreement
   HOME

TheInfoList



OR:

Norwalk Agreement refers to a Memorandum of Understanding signed in September 2002 between the Financial Accounting Standards Board (FASB), the US standard setter, and the International Accounting Standards Board (IASB).Text of the agreement
The agreement is so called as it was reached in Norwalk. The Agreement was a significant step towards the US formalising its commitment to the convergence of
US GAAP Generally Accepted Accounting Principles (GAAP or U.S. GAAP, pronounced like "gap") is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC) and is the default accounting standard used by companies based in the Uni ...
and
International Financial Reporting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardised way of describing the company's f ...
. In the Press Release that announced the Agreement, Robert H. Herz, chairman of the
FASB The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Secur ...
commented “The
FASB The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Secur ...
is committed to working toward the goal of producing high quality reporting standards worldwide to support healthy global
capital markets A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers ...
”. The Agreement set out a number of initiatives, including a move to eliminate minor differences between US and international standards, a decision to align the two Boards’ future work programmes and a commitment to work together on joint projects.


References

Accounting in the United States {{accounting-stub