The FASB and the IASB laid out an ambitious agenda for converging their respective standards in the 2008 Memorandum of Understanding, which summarizes the major projects the standard-setters expect to complete by 2011.

The chairs of both Boards called the document an important milestone in their long-term plan to converge U.S. generally accepted accounting principles (GAAP) with the IASB's International Financial Reporting Standards (IFRS).

The latest agreement is the third such document drafted by the two standard-setting bodies to document their plans to converge their respective accounting guidance, and it is the product of the most recent joint meeting of the two Boards in London in April 2008, during which the standard setters discussed how they will complete projects included in their Convergence Project.

The 2006 Memorandum of Understanding, A Roadmap for Convergence between IFRSs and US GAAP?2006-2008, established specific milestones for 11 major projects. In the 2008 MOU, the IASB and the FASB noted that while they did not meet their goal of converging all projects, they have made significant progress on seven of them. The topics include:

• Business Combinations: A project converging the two standards was completed in 2007, resulting in Statement of Financial Accounting Standards (SFAS) No. 141(R), Business Combinations, and a revised version of International Financial Reporting Standards (IFRS) 3, Business Combinations.
• Financial Instruments: Both Boards issued discussion papers and the FASB has issued Exposure Draft (ED) No. 1590-100, Accounting for Hedging Activities: an Amendment of FASB Statement No. 133.
• Financial Statement Presentation: Joint discussions are underway, and the Boards intend to release a discussion paper by the end of 2008.
• Intangible Assets: The Boards decided in 2007 not to include the project on their agenda.
• Liabilities and Equities: Both Boards have issued discussion papers and expect to release an exposure draft in 2009.

The specific changes to the milestones for the other four major projects in the 2008 MOU are:

• Consolidations: Both Boards have issued guidance that is not converged, and now seek to develop a strategy for a common standard.
• Derecognition: Both Boards plan to publish exposure drafts within the next year. They are also planning to develop a strategy for a common standard in the upcoming year.
• Fair value measurement: The FASB has issued SFAS No. 157, Fair Value Measurements, and the IASB plans to issue an exposure draft in 2009. The FASB plans to review SFAS No. 157 once the IASB guidance has been issued.
• Post-employment benefits: FASB has completed the first stage of a project. IASB plans to issue an exposure draft in 2009. Both Boards will develop a strategy for converging these standards after this guidance is issued.