Preview

Accounting Standards Board Paper

Good Essays
Open Document
Open Document
942 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Accounting Standards Board Paper
Running head: ACCOUNTING STANDARDS BOARD PAPER

Accounting Standards Board Paper
ACC/541
August 21, 2012

Accounting Standards Board Paper

As the globalization becomes more commonplace and the plant begins to “shrink”, there becomes a need for standardization. As companies increase is size, they begin to standardize to become more efficient and better serve their customers; this is also the case for the accounting world. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are the two main bodies that establish and communicate standards of financial accounting in their respected parts of the world. The FASB has this responsibility in the United States and the IASB has this responsibility internationally. The current IASB structure is that of 16 members. There are four from Asia/Oceania, four representing Europe, four from North America, one from Africa and South America, and two appointed from other areas ensuring geographical balance (IASPlus, 2012).
The FASB and the IASB began working on the convergence project in 2002. The two bodies have outlined what convergence means and the strategy to they will be employing to accomplish these goals in the Norwalk Agreement that was issued in 2002, and the Memorandum of Understanding that was issued in 2006. The Memorandum of Understanding was subsequently updated in 2008. It is the goal of the FASB to establish accounting standards that organizations can utilize internationally and domestically. Additionally, the path towards accomplishing this goal if for the IASB and the FASB to improve the United States generally accepted accounting principles (U.S. GAAP) and the International Financial Reporting Standards (IFRS) and brings these standards together as one (Financial Accounting Standards Board, n.d.).
The International Accounting Standards Committee (IASC) was formed in 1973 and the first international standards-setting body. In 2001, the IASC become the


References: Financial Accounting Standards Board. (n.d.). International Convergence of Accounting Standards—Overview. Retrieved from http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156245663  Financial Accounting Standards Board. (n.d.). International Convergence of Accounting Standards—A Brief History. Retrieved from http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156304264&pid=1176156245663  IASPlus. (2012). IASB Board membership. Retrieved from http://www.iasplus.com/en/resources/resource20 Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2011). Financial Accounting Theory and Analysis: Text and Cases (10th ed.). Retrieved from The University of Phoenix eBook Collection database.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    ACC 541 Week 1
    • 1251 Words
    • 4 Pages

    ACC 541 Week 1

    The International Accounting Standards Committee was formed in 1973. This committee was the first international standard-setting body. In early 2001, this Committee was reorganized and became the the International Accounting Standards Board (IASB) to independently develop and establish a single set of accounting procedures for international business. Since the reorganization of the IASB, the use of these international financial reporting standards (IFRSs) have been required or permitted in over 100 countries, including the European Union ("What Have IASB And FASB Convergence Efforts Achieved?", 2013). The IASB aims to make the entire world follow guidelines for financial reporting to make use and comparability of financial reports more consistent across all geographical areas.…

    • 1251 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Where Does the Us Stand on the Adoption of Ifrs?
    • 1356 Words
    • 6 Pages

    Where Does the Us Stand on the Adoption of Ifrs?

    The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have committed to work together to develop future standards jointly (FASB, 2011). Nonetheless, the key differences will have to be resolved and many believe the FASB will ultimately adopt international standards completely. This report seeks to discuss the US situation on the adoption of IFRS (International Financial Reporting Standards, as prescribed by IASB) and the possible effect of adoption on non-public businesses and the public?…

    • 1356 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Comparing IFRS to GAAP
    • 889 Words
    • 3 Pages

    Comparing IFRS to GAAP

    In the Accounting industry, there are various principles and guidelines by which financial accountants, analysts, and organizations need to abide by. The International Accounting Standards Board (IASB) issues standards (IFRS) that have been adopted by the United States and several countries outside of the U.S. (Kimmel, Weygandt & Kieso, 2010). The IFRS along with Generally Accepted Accounting Principles (GAAP), professionals in the accounting industry use these guidelines as a baseline on which accounting practices are built upon. These standards are governed by the Securities and Exchange Commission (SEC) which ultimately oversees U.S. financial markets and accounting standard-setting bodies. Moving forward, the elements of IFRS and GAAP will be discussed to illustrate the similarities and differences and how it relates to Accounting and used in business practice.…

    • 889 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Gaap vs Ifrs
    • 6672 Words
    • 27 Pages

    Gaap vs Ifrs

    The generally accepted accounting principal (GAAP) and international financial reporting standard (IFRS) are standards governing how economic events are reported. In the United States, the Securities and Exchange Commission (SEC) relies on the FASB, the accounting standard-setting body of the US, to develop accounting standards that public companies must follow when publishing financial statements. On the other hand, many countries outside of the Unite States have adopted the International Financial Reporting Standard (IFRS) which is issued by the International Accounting Standard Board (IASB). In recent years, the FASB and IASB have worked closely to try to minimize the differences in their standards and principals and to merge the two systems in the future.…

    • 6672 Words
    • 27 Pages
    Powerful Essays
    Read More
  • Better Essays

    Acc 541 Accounting Standards Board Paper
    • 1115 Words
    • 5 Pages

    Acc 541 Accounting Standards Board Paper

    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.…

    • 1115 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Relationship Between Iasb and Fasb
    • 1160 Words
    • 5 Pages

    Relationship Between Iasb and Fasb

    In 1973, the private sector International Accounting Standards Board (IASB) was formed. The IASB is a natural extension of a global market that has been evolving over the last three decades. The IASB formulates and publishes accounting standards to be observed when presenting financial statements and promote their global acceptance. As an overarching mission, the IASB works to improve and harmonize accounting standards, regulations, and procedures as it relates to financial statements. IASB standards provide a reference model and set of examples for financial reporting in developing countries. The IASB has no authority with the Financial Accounting Standards Board (FASB) or the Securities and Exchange Commission (SEC) in the United States at this time. Even though the FASB and SEC are not members of the ISAB, the SEC has ruled formally that public companies that have adopted the IASB standards can list their securities on the United States stock exchanges (Schroeder, Clark, & Cathey, Chapter 1, 2011).…

    • 1160 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Fasb Convergence
    • 543 Words
    • 3 Pages

    Fasb Convergence

    The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) were both formed in 1973. The FASB is the organization, in the private sector, for establishing standards of financial accounting that governs the preparation of financial reports by non governmental entities. The IASB is an independent private sector body that develops and approves international financial reporting standards. These two have been working toward the same goal since they were formed. Today the IASB and the FASB are working on a joint venture referred to as the Convergence Project.…

    • 543 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Adopting Ifrs in Canada
    • 4061 Words
    • 17 Pages

    Adopting Ifrs in Canada

    The AcSB will pursue separate strategies for each of the three major business entities in Canada. For public entities, the AcSB 's objective is to move to a single set of globally accepted high-quality standards. The transition to convergence with international financial reporting standards (IFRS) will take place over a five year period (2006 to 2011), with full convergence by the end of 2011.…

    • 4061 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Regulatory Bodies
    • 380 Words
    • 2 Pages

    Regulatory Bodies

    The major regulatory body International Accounting Standards Board, also known as IASB, has a function of creating the global general accepted accounting practices. They work with countries to create the GAAP.…

    • 380 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Fasb
    • 1094 Words
    • 5 Pages

    Fasb

    The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are two of the most important bodies of the Accounting/Finance field today. Though both boards work together to develop and enforce financial reporting standards for publicly held organizations, the FASB concentrates on the accounting standards in the United States while the IASB sets its focus on global standards. The rules and standards that are set for individual certified public accountants that practice in the United States are also set by the FASB. By introducing the IASB and FASB into the MSA program, students are able to gain more insight into what businesses are required to report and the progress that the accounting field continues to make.…

    • 1094 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Federal Accounting Standards Advisory Board (FASB)
    • 424 Words
    • 2 Pages

    Federal Accounting Standards Advisory Board (FASB)

    The relatively unknown Federal Accounting Standards Advisory Board (FASAB) is responsible for setting accounting standards for federal entities. Since the GAO began auditing financial statements from a number of large federal agencies in 1997, the importance of FASAB’s standards has become more apparent. Similarly, as corporations transact more international business, the influence of the International Accounting Standards Board (IASB), which sets cross-border standards, has grown. As FASB and the IASB work toward the convergence of their differing standards, the line between U.S. GAAP and a truly global set of accounting principles will blur. To be prepared, CPAs should become familiar with all major standards…

    • 424 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Fasb Convergence
    • 1091 Words
    • 5 Pages

    Fasb Convergence

    In 2001, the IASC was replaced by the IASB “(Schroeder, Clark, & Cathey, 2011, p. 82). The IASB wants to formulate and publish accounting standards and to promote them globally. The IASB currently consists of 15 individuals appointed by the trustees. The membership is based on the technical expertise. “On December 17, 2003, the IASB published 13 revised International Accounting Standards (IASs), reissued two others, and gave notice of the withdrawal of its standard on price level accounting. The revised and reissued standards mark the near completion of the IASB’s Improvements Project “(Schroeder, Clark, & Cathey, 2011, p.…

    • 1091 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Financial Accounting Quiz
    • 786 Words
    • 4 Pages

    Financial Accounting Quiz

    2. (TCO A) The IASB: (Points: 5) governs accounting standards in the U.S. is working on a convergence project with the FASB. sets the accounting standards for only European countries. plays only a minor part in accounting rule making throughout the world.…

    • 786 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    How Did Nationalism Help Hitler Rise To Power
    • 242 Words
    • 1 Page

    How Did Nationalism Help Hitler Rise To Power

    A ruler rising to power requires a skill that can aid them in capturing the attention of people and provide a means to - in Hitler and Mussolini’s case- become a dictator. Nationalism helped Mussolini and Hitler rise to power because this feeling helped them empathize with their people and gain their support. Both Mussolini and Hitler served in the military for their countries. Mussolini as a sharpshooter and Hitler as a Corporal helped build their nationalistic pride. Along with this nationalistic empathy, there was something else that both leaders had going for them: their spokesmanship.…

    • 242 Words
    • 1 Page
    Good Essays
    Read More
  • Satisfactory Essays

    Fasb Convergence
    • 388 Words
    • 2 Pages

    Fasb Convergence

    “The FASB’s mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information”(Schroeder et al., 2011, p. 9). The International Accounting Standards Board (IASB) which is an independent private sector body; was formed in 1973 for the purpose of simplifying the process of international business’s financial reporting and to harmonize and coordinate the countries engaged in setting accounting standards. “The goal of the FASB’s Short term International Convergence Project is to remove a variety of individual differences between U.S. GAAP and the International Financial Reporting Standards (IFRS) that are not within the scope of other major projects”(Schroeder et al., 2011, p.…

    • 388 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics