[1] Convergence in some form has been taking place for several decades,[2] and efforts today include projects that aim to reduce the differences between accounting standards.
Other companies are also allowed to use the IFRS, but most have chosen not to do so, and continue to use the UK accounting standards largely developed prior to 2005.
[13] Motivations for convergence include the belief that it will result in increased comparability between financial statements, which will benefit a variety of stakeholders.
[14] In particular, Shyam Sunder of the Yale School of Management has called the link between convergence and comparability "overblown",[6] while the cost and pace of adoption have been cited as the most common criticism of the SEC's 2008 convergence roadmap,[5] which set milestones that potentially lead to mandatory adoption of IFRS in 2014.
[18] The above-mentioned PwC senior partners expressed that convergence will lead to an accounting system that is too rules-based for non-US listed companies,[14] while other critics conversely criticize the principles-based nature of the IFRS as making it difficult for preparers of financial statements to defend against litigation.
[19] The idea of convergence has roots in the 1950s, and was a response to greater economic integration and international capital flows after World War II .
[20] Work towards the goals were reviewed in 2008, and a progress report published that also set out subsequent steps for each convergence topic.
[21] The FASB and IASB met again in 2009 and agreed to "intensify their efforts" in working towards the goals of the memorandum of understanding, while laying down future plans and targets.
[22] In 2013, fifteen of the largest banks in the United States, including Bank of America Corporation, Capital One Financial Corporation, Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Company, wrote a letter to the chairmen of FASB and the IASB encouraging the boards to resolve their differences over the accounting standards for credit losses.