Convergence of International Accounting Standards

Convergence of International Accounting Standards

Introduction

During the last decade, the accounting industry worldwide has undergone major revolutions. The history witnessed a series of corporate scandal including Enron, WorldCom & Arthur Anderson which helped to uncover the gaps of the accounting standards. It followed by many new regulations including Sarbanes Oxley Act of 2003 (Smantser, 2006). As the whole industry is moving towards the development of more comprehensive and transparent system of accounting, there is a great demand of international convergence of all accounting standards including Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). ...