AFTA Committee

FASB: International

American Free Trade Agreement Committee

The mission of the American Free Trade Agreement Committee for Cooperation on Financial Reporting (the Committee) is to improve the overall quality and comparability of accounting standards among its member standard setters and to serve the information needs of users of financial reporting by enhancing their ability to analyze and compare enterprises in the member countries. To accomplish its mission, the Committee acts to:

  • Promote the comparability of accounting standards, concurrent with improving the quality of financial reporting and serving the needs of users of that information

  • Consider any existing significant areas of difference in accounting standards that might be reduced through cooperative efforts and enhance the understanding of differences arising from different economic environments

  • Develop recommendations on what specific efforts should be taken to reduce existing significant differences in accounting standards

  • Monitor agendas and ongoing projects to identify potential significant areas of difference that might be created by proposed accounting standards

  • Develop recommendations on what specific efforts should be taken to reduce potential significant differences that might be created by proposed accounting standards

  • Consider the work of other standard setters or other organizations, including in particular the International Accounting Standards Committee

  • Monitor progress toward the elimination of significant differences in accounting standards.

The AFTA Committee coordinates arrangements for the biennial update of Significant Differences in GAAP in Canada, Chile, Mexico, and the United States, which is published on its behalf in English and French by the Canadian Institute of Chartered Accountants (CICA) and in Spanish by the Instituto Mexicano de Contadores Publicos A.C. In support of the AFTA Committee’s mission, the publication draws attention to and comments on major areas of difference in generally accepted accounting principles in the four countries. It also comments on progress in eliminating those differences. To order that publication, last updated in 2002, please visit the CICA’s website at www.cica.ca