Acc 541 Accounting Standards Board Paper
Accounting Standards Boards
Leslie Brian
ACC/541
November 14, 2011
Delphine Agnor Wolsker
Accounting Standards Boards
The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy (MSA) program, prepare students for a career in accounting. History of the Boards and their Relationship Today’s accounting standards boards were formed to improve upon and evolve from the footsteps of their predecessor organizations. They were each organized based upon specific needs of the industry and the public. Although the boards have much in common, they are also vastly different.
Financial Accounting Standards Board (FASB) The significance of the FASB can be realized by examining the history of formalized accounting theory development. The first organization to officially begin research on accounting standards and theory was the American Accounting Association (AAA) in 1935. This group was formerly the American Association of the University Instructors in Accounting (AAUIA), formed in 1916 to develop accounting curriculum. In 1936, the American Institute of Certified Public Accountants (AICPA) was formed by merging the American Society of Certified Public Accountants and the American Institute of Accountants (AIA). The AICPA formed the Committee on Accounting Procedure (CAP) in 1936 to establish generally accepted practices. The official pronouncements of the CAP were Accounting Research Bulletins (ARBs). In
Leslie Brian
ACC/541
November 14, 2011
Delphine Agnor Wolsker
Accounting Standards Boards
The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy (MSA) program, prepare students for a career in accounting. History of the Boards and their Relationship Today’s accounting standards boards were formed to improve upon and evolve from the footsteps of their predecessor organizations. They were each organized based upon specific needs of the industry and the public. Although the boards have much in common, they are also vastly different.
Financial Accounting Standards Board (FASB) The significance of the FASB can be realized by examining the history of formalized accounting theory development. The first organization to officially begin research on accounting standards and theory was the American Accounting Association (AAA) in 1935. This group was formerly the American Association of the University Instructors in Accounting (AAUIA), formed in 1916 to develop accounting curriculum. In 1936, the American Institute of Certified Public Accountants (AICPA) was formed by merging the American Society of Certified Public Accountants and the American Institute of Accountants (AIA). The AICPA formed the Committee on Accounting Procedure (CAP) in 1936 to establish generally accepted practices. The official pronouncements of the CAP were Accounting Research Bulletins (ARBs). In
References: Deloitte. (2007). IFRSs and US GAAP: A Pocket Comparison. Retrieved from http://www.iasplus.com/dttpubs/0703ifrsusgaap.pdf Financial Accounting Standards Board (FASB). (2010). Accounting standards codification TM. Financial Accounting Standards Board (FASB). Retrieved from http://aaahq.org/ascLogin.cfm IFRS Foundation. (2011). Standards (IFRSs). Retrieved from http://www.ifrs.org/IFRSs/IFRS.htm Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2011). Financial accounting theory and analysis (Tenth ed.). Hoboken, NJ: John Wiley & Sons, Inc.