{"id":94,"date":"2024-09-06T16:46:23","date_gmt":"2024-09-06T16:46:23","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/convergence\/"},"modified":"2024-09-11T21:21:09","modified_gmt":"2024-09-11T21:21:09","slug":"convergence","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/convergence\/","title":{"raw":"Convergence","rendered":"Convergence"},"content":{"raw":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\r\n<ul>\r\n \t<li>Explain the convergence movement<\/li>\r\n<\/ul>\r\n<\/section>&nbsp;\r\n\r\nThe convergence of accounting standards refers to the goal of establishing a single set of accounting standards that will be used internationally, and in particular, the effort to reduce the differences between the GAAP, and the IFRS. Convergence in some form has been taking place for several decades, and efforts today include projects that aim to reduce the differences between accounting standards.\r\n\r\nThe goal of and various proposed steps to achieve convergence of accounting standards has been criticized by various individuals and organizations. For example, in 2006 senior partners at PricewaterhouseCoopers (PwC) called for convergence to be \u201cshelved indefinitely\u201d in a draft paper, calling for the IASB to focus instead on improving its own set of standards.\r\n\r\n<section class=\"textbox linkToLearning\" aria-label=\"Link to Learning\">As of early 2020, 166 countries were using IFRS and only one was using GAAP. For an interactive list of IFRS by jurisdiction, visit: <a href=\"https:\/\/www.ifrs.org\/use-around-the-world\/use-of-ifrs-standards-by-jurisdiction\/#profiles\" target=\"_blank\" rel=\"noopener\">Use of IFRS Standards<\/a>.<\/section>As time goes on, convergence will be an interesting movement to watch and see as details are worked through towards creating that single set of accounting standards.\r\n\r\n<section class=\"textbox tryIt\" aria-label=\"Try It\">[ohm2_question hide_question_numbers=1]25278[\/ohm2_question]\r\n[ohm2_question hide_question_numbers=1]25279[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\n<ul>\n<li>Explain the convergence movement<\/li>\n<\/ul>\n<\/section>\n<p>&nbsp;<\/p>\n<p>The convergence of accounting standards refers to the goal of establishing a single set of accounting standards that will be used internationally, and in particular, the effort to reduce the differences between the GAAP, and the IFRS. Convergence in some form has been taking place for several decades, and efforts today include projects that aim to reduce the differences between accounting standards.<\/p>\n<p>The goal of and various proposed steps to achieve convergence of accounting standards has been criticized by various individuals and organizations. For example, in 2006 senior partners at PricewaterhouseCoopers (PwC) called for convergence to be \u201cshelved indefinitely\u201d in a draft paper, calling for the IASB to focus instead on improving its own set of standards.<\/p>\n<section class=\"textbox linkToLearning\" aria-label=\"Link to Learning\">As of early 2020, 166 countries were using IFRS and only one was using GAAP. For an interactive list of IFRS by jurisdiction, visit: <a href=\"https:\/\/www.ifrs.org\/use-around-the-world\/use-of-ifrs-standards-by-jurisdiction\/#profiles\" target=\"_blank\" rel=\"noopener\">Use of IFRS Standards<\/a>.<\/section>\n<p>As time goes on, convergence will be an interesting movement to watch and see as details are worked through towards creating that single set of accounting standards.<\/p>\n<section class=\"textbox tryIt\" aria-label=\"Try It\"><iframe loading=\"lazy\" id=\"ohm25278\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=25278&theme=lumen&iframe_resize_id=ohm25278&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><br \/>\n<iframe loading=\"lazy\" id=\"ohm25279\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=25279&theme=lumen&iframe_resize_id=ohm25279&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n","protected":false},"author":6,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Convergence\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"\",\"author\":\"Boundless\",\"organization\":\"\",\"url\":\"https:\/\/www.boundless.com\/accounting\/textbooks\/boundless-accounting-textbook\/introduction-to-accounting-1\/conventions-and-standards-21\/differences-between-gaap-and-ifrs-and-implications-of-potential-convergence-131-7049\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":79,"module-header":"- Select Header -","content_attributions":[{"type":"original","description":"Convergence","author":"Joseph Cooke","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""},{"type":"cc-attribution","description":"","author":"Boundless","organization":"","url":"https:\/\/www.boundless.com\/accounting\/textbooks\/boundless-accounting-textbook\/introduction-to-accounting-1\/conventions-and-standards-21\/differences-between-gaap-and-ifrs-and-implications-of-potential-convergence-131-7049\/","project":"","license":"cc-by-sa","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/94"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":3,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/94\/revisions"}],"predecessor-version":[{"id":1002,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/94\/revisions\/1002"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/parts\/79"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/94\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/media?parent=94"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=94"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/contributor?post=94"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/license?post=94"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}