Financial Accounting With Specific Emphasis on the Convergence Project

The field of accounting is in a phase that is seeing rapid evolution in the area of accounting principles. Generally Accepted Accounting Principles (GAAP) form the standards for financial accounting that are set by the regulatory body entrusted with the authority to do so by the government in a specific jurisdiction. Recently, there has been a move for convergence, which is being driven by the International Accounting Standards Board (IASB). This project, called the Convergence Project, 2007, aims to develop a set of international accounting standards that can be used in all countries in the world. As a result of this, there will be changes in the regulatory requirements for financial accounting over the next two years in most of the developed countries, if not developing countries. Accountants who want to practise financial accounting will therefore have to keep up with these rapid expected changes in the regulatory requirements.