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Fasb vs. Iasb

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FASB VS. IASB - Convergence Project
Shenita Baker
ACC541
November 15, 2011
Delphine Wolsker

FASB VS. IASB - Convergence Project The Financial Accounting Standard Board (FASB) is located in the United States and was formed in 1973 as a private sector to establish guidelines for financial accounting. These standards command the arrangement of financial reports by nongovernment bodies. The Financial Accounting Standard Board has only 5 members. The FASB standards are known by The American Institute of Certified Public Accountants and the Securities and Exchange Commission. The Financial Accounting Standard Board encourages participation, stakeholder’s outlook, and the attention by the Financial Accounting Foundation’s Board of Trustees. The FASB also controls the FASB Accounting Standards Codification which acts as the connection of valid standards of accounting and reporting. The International Accounting Standards Board (IASB) is a self-sufficient group that contains 15 members located in London. The International Accounting Standard Board ha experience in auditing, preparing, and using financial reports. The IASB also help decide accounting guidelines . The IASB is part of the IFRS foundation came about in 2001. The board is funded by major accounting firms and private financial institutions. The International Accounting Standard Board and the Financial Accounting Standards Board are currently working on a joint venture known as the convergence project. The convergence plan that was proposed by both boards back in 2002 in “The Norwalk Agreement” remains fully harmonious and being carried out. By removing the difference both boards have, this will improve comparability of financial across the world. The project investigates all of the sizeable differences between U.S. GAAP and IFRS. The differences are instances in which...

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