A joint Memorandum of Understanding between the International Accounting Standards Board (IASB)and US Financial Accounting Standards Board (FASB),published in 2006:
A) agreed to maintain the status quo and retain international and US accounting standards in the form that they currently exist.
B) identified a number of options to ensure complete consistency between international and US accounting standards by 2010.
C) identified an intention to implement actions to identify and remove major accounting differences in specific areas by 2008.
D) identified an agreement that international standards will be changed to accord with US standards, wherever there were key differences, by 2008.

Question

Quizplus · Accepted Answer

The joint Memorandum of Understanding between the IASB and FASB, published in 2006, identified an intention to implement actions to identify and remove major accounting differences in specific areas by 2008. This means that the two boards aimed to work towards achieving greater consistency between international and US accounting standards by addressing major differences in specific areas. Option A is incorrect because the Memorandum did not aim to maintain the status quo, but rather to identify and remove major accounting differences. Option B is incorrect because the Memorandum did not identify a number of options to ensure complete consistency by 2010, but rather aimed to address major accounting differences in specific areas by 2008. Option D is incorrect because the Memorandum did not make an agreement that international standards will be changed to accord with US standards, wherever there were key differences, by 2008.

A Joint Memorandum of Understanding Between the International Accounting Standards