Summary
In Sep 2002, the International Accounting Standards Board (IASB) based in London and the Financial Accounting Standards Board (FASB) in the US entered into the Norwalk Agreement. The essence of this agreement is that both parties would use best efforts to make existing accounting standards compatible as soon as practicable; and to co-ordinate their future work programs. One of the terms the IASB and the FASB had to agree on was 'fair value,' which is a rough equivalent to the 'market value.' To date, unlike business valuers, most of the Appraisal Institute of Canada's members have only had to deal with assets, and, more often than not, only one class of assets -- real property. Well, all those close to accounting standards are saying convergence will effectively occur in the next three to five years.
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Extract
Countdown to Convergence
From a valuation standards perspective, the year that is drawing to a close has been quite active. For those of you who may not have been tracking some of the events, I will attempt to share why you might want to keep current going forward and why these changes represent a real opportunity.
The best place to start is to briefly summarize some of the more significant events that occurred in the realm of the accounting profession and accounting standards. I t...See the full content of this document
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