Norwalk Agreement refers to a Memorandum of Understanding signed in October 2002 between the Financial Accounting Standards Board

Financial Accounting Standards Board

The Financial Accounting Standards Board is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles within the United States in the public's interest...

(FASB), the US standard setter,and the International Accounting Standards Board

International Accounting Standards Board

The International Accounting Standards Board is an independent, privately funded accounting standard-setter based in London, England.The IASB was founded on April 1, 2001 as the successor to the International Accounting Standards Committee...

 (IASB). The agreement is so called as it was reached in Norwalk

Norwalk, Connecticut

Norwalk is a city in Fairfield County, Connecticut, United States. According to the 2010 U.S. Census, the population of the city is 85,603, making Norwalk sixth in population in Connecticut, and third in Fairfield County...

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The Agreement was a significant step towards the US formalising its commitment to the convergence of US GAAP and International Financial Reporting Standards

International Financial Reporting Standards

International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....

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In the Press Release that announced the Agreement, Robert H. Herz, chairman of the FASB commented “The FASB is committed to working toward the goal of producing high quality reporting standards worldwide to support healthy global capital markets”.

The Agreement set out a number of initiatives, including a move to eliminate minor differences between US and international standards, a decision to align the two Boards’ future work programmes and a commitment to work together on joint projects.