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Accounting Standards Board

In: Computers and Technology

Submitted By vmadar62
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Abstract

Accounting standard boards exist both in the United States and other countries. Our economies move to a more globalized environment a global standard or accounting methods and guidelines has become necessary. Over the past decades with the help of the Internet we have seen our economy grow from a national one to a global one. With this comes new challenges and opportunities. Companies can have potential investors in other countries as well at home. For foreign investors to look at U.S. based companies they need to have a financial standard that they can understand. For this both the U.S. and European country’s have come to the conclusion that a unified accounting standard needed to further our economies. There are two bodies’ we will review, from the U.S. the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB). The International Accounting Standards Board (ISAB) is composed of multiple nations members voluntarily. The relationship of these standard setters, and the International Accounting Standards Board (IASB) equivalents of the U.S’s Financial Accounting Standard Board (FASB) original pronouncements. Finally we will look at how the MSA program prepares students for a professional life within the accounting profession.

“Because of national differences, the financial accounting standards applied to the accounting data reported by multinational companies often vary significantly from country to country. This has necessitated the demand for global financial reporting to improve multinational commerce” (Schroeder, Clark, & Cathey, 2011, p. 78). We are a global economy that requires standards that can provide investors with useful information that will not require reconciliation from a national standard to an international one or vise versa. For example: Cisco Systems in a network company who...

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