FASB And IFRS Diverge

For several years, FASB and IFRS have been working toward the convergence of U.S. and international accounting polices. Now, it appears that a split has occurred. Several cultural differences appear to have led to divergence, including the informal relationship between stakeholders and FASB, which contrasts to the more rigid international relationship. Additionally, the lack of support for internationalization of accounting standards from U.S. corporations and investors appears to have been a major influence. IASB chairman, Hans Hoogervorst, believes that convergence was successful as convergence has been reached on several topics. In either case, it appears the push to homogenize U.S. and international accounting standards is at a standstill for now.