Asked by Victoria Overbey on Jun 27, 2024

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What is the significance of the "Norwalk Agreement?"

Norwalk Agreement

An agreement between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to make their existing financial reporting standards fully compatible as soon as practicable and to coordinate their future work programs to ensure compatibility.

  • Gain insight into the joint initiatives of the FASB and IASB and how they affect practices in accounting.
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Zybrea KnightJul 04, 2024
Final Answer :
The "Norwalk Agreement" set the FASB and IASB along the path of convergence of accounting standards. The FASB and IASB agreed to "use their best efforts to (a) make their existing financial reporting standards fully compatible as soon as is practicable and (b) to coordinate their work program to ensure that once achieved, compatibility is maintained."