The current financial reporting crisis in the United States implies the need to develop a better accounting standard that should be internationally acceptable. Companies that seek investment or capital opportunities across national borders tend to face high cost and time constraints. These companies must reconcile their financial statements to comply with the nation's accounting standards. Both the IASB and FASB have developed standards that will improve the efficiency of global capital markets by reducing the cost of capital, improving comparability, and strengthening corporate authority (Schroeder, Clark, Cathey, 2005). The aim of the current objectives is to provide a time frame for joint efforts with a view to eliminating the need for an agreement between both councils. There are several differences that can be compared between the original FASB statements and the IASB statements. Differences exist due to standards, program objectives, timing, alternative and/or related guidance that may be required by the IASB but not the FASB. The intention to understand the differences or similarities will be about understanding the challenges that borads will face in the convergence project. The goal of the IASB and FASB is to develop a set of high-quality global standards over a long period