This website uses cookies to ensure you have the best experience. Learn more

Accounting Standards Board Essay

1370 words - 6 pages

Accounting Standards Boards Paper
April Jones
University of Phoenix

Abstract
Accounting is an ever-evolving field with constantly changing objectives. In this world of accounting, standards need to be set whether they are in the United States or Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The intent of this paper will be to address the relationship ...view middle of the document...

After the Working Party published its Final Recommendations in 1999, and having the IASC approval, a new IASB Constitution took effect from July 1, 2000. The standards-setting body was renamed the International Accounting Standards Board (IASB). It would operate under a new International Accounting Standards Committee Foundation (IASCF, now the IFRS Foundation).
The history of Financial Accounting Standards Board (FASB) begins with the Accounting Principles Board (APB). The APB is the former authoritative body of the American Institute of Certified Public Accountants (AICPA). It was composed of from seventeen to twenty-one members, who were selected primarily from the accounting profession but also included individuals from industry, government, and academia (Schroeder, Clark, & Cathey, 2011). Due to the many doubts and the growing criticism of the APB, the board of directors of the AICPA appointed two committees. The Wheat Committee and The Trueblood Committee. The Wheat Committee issued its report in 1972 recommending that the APB be eliminated and the Financial Accounting Standards Board (FASB) be created (Schroeder et al., 2011).
Convergence Project
International convergence of accounting standards is not a new idea. The idea of convergence was first brought up in the late 1950s due to the post World War II economic integration and related increases in cross-border capital flows (International Convergence–A Brief History, 2014). Since 2002, the FASB and IASB have been working together to improve and converge U.S. generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS). The FASB’s mission is to improve U.S. financial accounting standards for the benefit of present and potential investors, lenders, donors, creditors, and other users of financial statements (International Convergence–Overview, 2014). The FASB believes that by bringing forward convergence and making global accounting standards as similar as possible, it will accomplish their goals. Not only will investors, companies, auditors, and other participants in the U.S. financial reporting system benefit from the increased comparability, but it would also reduce the cost to both users and preparers of financial statements. Additionally, it will also make worldwide capital markets more effective (International Convergence–Overview, 2014).
The FASB and the IASB have been working together formally towards the convergence project since 2002. During the past ten years, the FASB and IASB collaborated through joint projects to develop common standards (International Convergence–Overview, 2014). The FASB has issued those standards as U.S. GAAP and the IASB has issued them as IFRS. Over time, the two sets of standards are expected to both improve in quality and become increasingly similar (International Convergence–Overview, 2014). The remaining four joint projects are: revenue recognition; financial instruments; leases; and insurance.
...

Other Essays Like Accounting Standards Board

Intermediate Financial Accounting Essay

5060 words - 21 pages . F 8. Committee on Accounting Procedure. F 9. Passage of FASB standards. T 10. Financial Accounting Concepts. T 11. Creation of Accounting Principles Board. F 12. FASB Codification. T 13. Code of Professional Conduct. F 14. GAAP and political action. T 15. Public Company Accounting Oversight Board. T 16. Expectations gap. F 17. Financial reports. F 18. Fair value information. F 19. International Financial Reporting

Financial Accounting Boards Essay

1186 words - 5 pages Accounting Standards Board The Financial Accounting Standards Board (FASB) oversees and constructs the reporting standards for financial accounting for the public to view. Standards are imperative, due to the decisions made about the administration of resources; these standards aid companies and the economy to operate cohesively, because the FASB relies greatly on concise, understandable, and reliable financial information. The information submitted

Gasb and Fasb Analysis

547 words - 3 pages the appropriate accounting standards board in direct relation to the type of business or organization. Governmental Accounting Standards Board (GASB) was created with the purpose of improving standards of state and local governmental accounting and financial reporting. By establishing and improving such standards, the GASB seeks to accomplish useful information for users of financial reports along with guiding and educating the public

Research Paper

1574 words - 7 pages | | International Financial Reporting Standards: Roles | | | | The International Accounting Standards Board is responsible for setting up, promoting and developing the standards set up by the International Financial Reporting Standards board. The organization's mission is to set accounting standards that best serve the public interest and create internationally-acceptable guidelines for financial statement reporting. The

Accounting

566 words - 3 pages Accounting Standards Board – IASB) as well as the requirements of the Companies Act Chapter 486. Management Accounting: This is the part of accounting that provides special-purpose statements and reports to management and other persons inside the organization. The information generated by management accounting is therefore for internal uses and is not guided by any standards or legal requirements. Management Accounting, unlike financial

Development of Accounting Practices in Austrailia

1896 words - 8 pages and changed it name to CPA Australia in 2000) also issued accounting practices that deal with subjects related directly in preparation of financial statements. In 1966, ICAA and CPA were then jointed and work together to form Australian Accounting Research Foundation (AARF) to research and issue proposed accounting standards through its Accounting Standards Board (AcSB) and the Public Sector Accounting Standards Board (PSASB) to the private

Accounting in the Organization Db2

939 words - 4 pages and summarizing in financial terms the results of past decisions and transactions. It is primarily oriented to external stakeholders, such as investors, creditors, and tax authorities. It must be consistent with rules formulated by standard setters such as the Financial Accounting Standards (FASB) in the United States and the International Accounting Standards Board (IASB) for much of the rest of the world, and local country regulatory

Accounting Standard Board Paper

1323 words - 6 pages Accounting Standard Board Paper ACC/541 June 18, 2012 Accounting Standard Board Paper In the world of accounting there needs to be standards for all of the countries, whether they are in the United States of Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of

Acct 525 Isb vs. Asb

887 words - 4 pages , understand, and apply. The Clarity Project includes the goal of working toward convergence of U.S. auditing standards with International Standards on Auditing (ISA). This convergence project is attempting to make auditing standards coordinated or comparable throughout the world. Additionally, the Public Company Accounting Oversight Board (PCAOB) adopted a suite of eight auditing standards related to the auditor’s assessment of, and response to, risk in

Reviewing Accounting Standards

987 words - 4 pages rather than memorising them. There are many sources that can be used in order to find and apply the correct Accounting Standard. The Financial Reporting Handbook, the Australian Accounting Standards Board (http://www.aasb.gov.au/), the Institute of Chartered Accountants in Australia and the National Institute of Accountants are just but a few available. The Framework identifies key concepts for the Preparation and Presentation of Financial

Response to Client Request

1162 words - 5 pages Response to Client Request ACC/541 September 2, 2013 To: From: Subject: Lease Type and Lease Structure This memo includes research on leases and lease structure. Through intensive research on the Financial Accounting Standards Board (FASB), three sub-types of leases were found for lessors to account for the leases. The three sub-types are direct financing, sales-type, and operating leases. The international

Related Papers

Accounting Standards Board Paper

1219 words - 5 pages Accounting Standards Board Paper Anne-Marie Sweat ACC/541 University of Phoenix Willard Berry April 6, 2015 The IASB and the FASB The International Accounting Standards Board (IASB) is operated in the private sector as an independent body developing and approving International Financial Reporting Standards. ("Ias Plus", 2015) Much like our nemesis The Financial Accounting Standards Board (FASB) is also operated in the private sector as

Accounting Standards Boards Paper

1367 words - 6 pages accounting standards dictated by the accounting practices of their applicable country. Currently there is a push for international accounting standards to be adopted by all countries to address this problem. The United States currently follows generally acceptable accounting principles (GAAP) as established by the Financial Accounting Standards Board (FASB) whereas the rest of the world follows standards set by the International Accounting

Ifrs And Fasb Comparison On Accounting Errors

1207 words - 5 pages not be changed in accounting for events and transactions of a similar type (Financial Accounting Standards Board). It is preferred that consistent use of the same accounting principle from one accounting period to another is used because it enhances the utility of financial statements for users by facilitating analysis and understanding of comparative accounting data. Consistent use provides a dimension of high-value financial statements that

Accounting Regulatory Bodies Essay

841 words - 4 pages Standards Board, the Financial Accounting Standards Board, and the Governmental Accounting Standards Board are four of the top regulatory bodies in the field of accounting. By providing an explanation of the regulations set by each and how an organization can comply with those regulations, it will be obvious as to why these regulatory bodies are necessary to help in reassuring investors and organizations alike of accurate financial reporting