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The agreement of working together by Financial Accounting Standards Board  and the International Accounting Standards Board ,was a preliminary step towards  intergrating and harmonizing the GAAP and IFRs Standards  

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The agreement of working together by Financial Accounting Standards Board  and the International Accounting Standards Board ,was a preliminary step towards  intergrating and harmonizing the GAAP and IFRs Standards  . Push for convergence are still on .In particular , the rationale convergence of the two major accounting standards is geared at  creating uniform based information on the same accounting methodologies for global business,improving accountability , improving information transfer as well as lessening the international transactional and exchange risks.

However, convergence of the accounting standards is coupled with some disadvantages. Firstly, they would be integration problems or complexity as the GAAP and IFRS are used in different countries that have different taxation systems, banking laws and other securities laws. Publicly traded companies in US are dictated by the Securities and Exchange to follow GAAP, and are required to incorporate Modified Accelerated Cost Recovery System for asset depreciation in regard to Internal Service Revenue tax code. This is contrary to IAS accounting model and convergence would prompt change tax systems for governments.

Secondly , some countries would resist transitions as such changes would imply adoption of new securities laws , tax laws , banking laws and financial regulations  .Worth noting , these laws and regulations dictates the accounting principles. Governments that use GAAP have different laws and regulations as compared to those that employ IFRS standards. For instance, in U.S, there are primarily set state laws that govern the insurance, banking, and business activities.

On the other hand , convergence would imply that CPAs, lawyers and accountants would comply with  rules by an worldwide accepted  body .If this body has no prosecutorial authority over citizens of some countries , then constitutional and jurisdictional issues would  arise. Forced compliance for some companies may result to some issues. In particular, small companies utilize high percentage of their revenue on regulatory compliances as compared to large companies. Adopting and integration of new accounting standards would further increase the costs reducing the profits.