Norwalk Agreement

The Norwalk Agreement is a 2002 signed a Memorandum of Understanding between the FASB (responsible for U.S. GAAP) and IASB ( responsible for the IFRS ) for the convergence of the two accounting standards. It was named after the place of signing Norwalk, seat of the FASB, named. Based on this agreement and further Memorandum of Understanding accounting standards were brought closer to each other. The goal is a single high-quality accounting standards. Due to the progress already made, the SEC decided in 2007 that foreign companies that publish IFRS financial statements without reconciliation ( reconciliation ) to make U.S. GAAP more. From 2014 U.S. issuers should be allowed to use IFRS.