The Convergence of Accounting Standards or the Next Revolutionary Change in the Accounting Industry

In the past five years the accounting industry has undergone major transformations. A wave of corporate scandals that began with Enron shook accounting\u27s foundations, and led to passage of the Sarbanes Oxley Act of 2003. As the industry is absorbing and implementing the new requirements of the Sarbanes Oxley Act, it has yet another development on the horizon -- the pressure of convergence of accounting standards between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). Marie Kling, senior manager in PWC, summarizes the current situation: The train heading towards global GAAP has left the station, while it won\u27t reach its destination overnight, there\u27s no turning back. Even a U.S.-based company with no international operations will be affected by the move towards convergence .