...Accounting Standards Boards Paper Elena Thomas ACC/541 January 10, 2011 Accounting Standards Boards Paper In the 1930’s, the financial community was realizing a need for a uniform accounting standard especially for its publicly traded companies. The SEC was given the authority by the Securities Act of 1933 to create accounting standards and determine the accounting disclosures (M.E. Sharpe, 2006). The SEC deferred to the accounting profession the task of creating auditing standards. The New York Stock exchange and the now American Institute of Certified Public Accountants (AICPA) together published guidelines for audits. In 1971, the AICPA created a committee which was chaired by Francis M. Wheat and comprised of seven members to make recommendations on how to better the accounting principles ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). This committee recommended that a full time board be developed to create set accounting standards. This led to the development of the Financial Accounting Standards Board (FASB) in 1973 within the Financial Accounting Foundation ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). The function of the FASB is to establish and publish the accounting principles. The FASB issues three major types of pronouncements: 1) Standards, Interpretations, and Staff positions 2) Financial Accounting...
Words: 637 - Pages: 3
...Accounting Standards Boards Sandra Ferrara ACC541 June 18, 2012 Professor Sonja Wilson Accounting Standards Boards Accounting standards Accounting standards boards maintain and produce accounting standards to keep financial reporting accurate and useful. Financial reporting should provide a fair presentation of the financial position and financial activity of an entity and permit comparison among other entities. To obtain a true “apples to apples” comparison between entities the statements should be uniform in underlying assumptions, measurements, and general presentation guidelines. Accounting standards produces the guidelines and regulations required for consistency among financial reporting between numerous entities. Accounting standards develop with economic development. In the early development of accounting standards the standards were region specific. For example, individual nations developed accounting standards specific to its economy and the needs of the users in the nation’s economy by establishing a committee or a board. Currently there are two main accounting standard setting boards, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). These two boards are currently collaborating in a goal to establish a “single set of high-quality accounting standards for all listed and other economically significant business enterprises around the world” (Schroeder, Clark, & Cathey, 2011, p. 85). The FASB...
Words: 1290 - Pages: 6
...Accounting Standards Boards Accounting Standards Boards The International Accounting Standards Board is an organization that is based out of London in which it seeks to set as well as enforce accounting standards procedures. The SEC chairman William Douglas disagreed with, the SEC decided to allow the reporting of this to be filed with the SEC in 1938. The first to be influenced by the AICPA was the Committee on Accounting Procedures followed by the Accounting Standards Board. The Financial Accounting Standards Board is an independent agency which establishes accounting principles as well as accounting procedures. The Financial Accounting Standards Board is an independent agency which establishes accounting principles as well as accounting procedures. The Master of Science Accountancy is an advanced accounting degree that is designed to deal with the objectives of the American Institute of Certified Public Accountants. This degree allows one to see the professional values, communication, leadership skills, strategic, critical thinking, and technology skills that are needed in an accounting position. International Accounting Standards Board (IASB) The International Accounting Standards Board is an organization that is based out of London in which it seeks to set as well as enforce accounting standards procedures. As stated by the Business Dictionary (2012) “Over 100 countries currently require or permit companies to comply...
Words: 1154 - Pages: 5
...Accounting Standards Boards Debra McCaster ACC 541 June 27, 2011 Ken Burton Accounting Standards Boards The IASB (Internal Accounting Standards Board) set standards dealing with international accounting and FASB (Financial Accounting Standards Board) has standards dealing with international accounting but they mainly focus on accounting within the United States. The purpose of the convergence is to eliminate the differences dealing with international accounting and to have a much better focus on the consistence of the standards for international accounting. In 2003 FASB and the IASB decided to come together and create a short-term and long-term convergence project to attain a better uniform set of accounting standards. Among the efforts are (1) The FASB’s Short-term international convergence Project, (2) the Norwalk Agreement, and (3) the Roadmap to Convergence (Schroeder, Clark, & Cathey, 2011). The short-term convergence project will consist of nine short-term projects. These projects will consist of segment reporting (ISAB), fair-value option, including investment properties (IASB), borrowing cost (IASB), government grants (IASB), impairment (joint), income tax (joint), joint ventures (IASB), research and development...
Words: 769 - Pages: 4
...Accounting Standards Boards ACC/541 Accounting records was found in various parts of the world that are dated several thousand years ago. The world knew how to record their transactions since they knew trade. The more complicated the trading transactions get the more the need for more developed financial recording. In the United States the interest in improving the financial statements started after the great depression. The New York Stock Exchange (NYSE) and the American Institute of Accountants (AIA) met to discuss how to protect the investors. The cooperation between the NYSE and the AIA introduced legislations and two of the most important of those legislations were the Securities act of 1933 and the Securities Exchange Act of 1934 which established the Securities and Exchange Commission (SEC). In 1936 The AIA and the American Society of Certified public Accountants merged together to establish a bigger organization called the American Institute of Certified Public Accountants (AICPA). The AICPA established Committee on Accounting Procedure and the Accounting Principles Board failed to achieve the goals that they were created for. The AICPA appointed two Committees, the Wheat Committee and the Trueblood Committee. The Wheat Committee’s responsibility was to study how financial accounting principles should be established. The Committee’s recommendations were the abolishment of the APB and the establishment of the Financial Accounting Standards Board (FASB). The mission...
Words: 1094 - Pages: 5
...Accounting Standards Board Accounting Standards Boards Paper Elena Thomas ACC/541 January 10, 2011 Accounting Standards Boards Paper In the 1930’s, the financial community was realizing a need for a uniform accounting standard especially for its publicly traded companies. The SEC was given the authority by the Securities Act of 1933 to create accounting standards and determine the accounting disclosures (M.E. Sharpe, 2006). The SEC deferred to the accounting profession the task of creating auditing standards. The New York Stock exchange and the now American Institute of Certified Public Accountants (AICPA) together published guidelines for audits. In 1971, the AICPA created a committee which was chaired by Francis M. Wheat and comprised of seven members to make recommendations on how to better the accounting principles ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). This committee recommended that a full time board be developed to create set accounting standards. This led to the development of the Financial Accounting Standards Board (FASB) in 1973 within the Financial Accounting Foundation ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). The function of the FASB is to establish and publish the accounting principles. The FASB issues three major types of pronouncements: 1) Standards, Interpretations, and...
Words: 294 - Pages: 2
...explain a joint venture referred to as the convergence project, between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (FASB, 2002). This paper will also provide a brief history of the relationships between the two boards, and the equivalents between IASB and FASB. Along with an explanation of how the Master of Science in Accountancy Program helps prepare students for a professional life, within the accounting vocation. Accounting Standards Boards Within each country, there are different types of governments who follow different sets of regulations and require different accounting standards. With the current growth of global commerce, companies conducting business abroad require more consideration in there accounting, versus a business who only conducts commerce in one country. Many countries do not have the same level of regulation boards as the United States, who follows the standard set of principles by FASB, because of the accounting reporting differences, it is extremely important for any global organization to use IASB for best financial practices on a global scale. However with such a high-demand for global commerce, following different sets and types of accounting regulations has caused confusion and has become cumbersome to the stakeholders involved in international commerce (FASB, 2003). National Regulatory Boards Local and state laws, plus a host of regulatory commissions establish a regulatory environment...
Words: 1110 - Pages: 5
...W Accounting Standards Boards Miranda Arnold ACC/541 Cecil Lucy March 17, 2014 Accounting Standards Boards The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) first converged in 2002 following the Norwalk Agreement (Whittington, 2007). The convergence was inspired by the need of the boards to produce a solid infrastructure by uniting the two frameworks represented by each board in a bid to harmonize accounting practices worldwide (Whittington, 2007). Additionally, the convergence was also inspired by the need to attain improvement in accounting standards by achieving completeness, and improving coherence (Whittington, 2007). In the IASB framework for example, Bullen, and Crook (2005) note that there were specific areas of difficulty that benefited from the convergence. Some of these areas include the explicit meaning of what liability is, and the distinction between equity and liability. Joining Forces During the FASB/IASB convergence announcement in 2002, the two boards stated that they would work together to develop accounting standards for both cross-border and domestic financial reporting. They also stated that they would work toward making their respective standards compatible, and that future work programs would be done with the need to retain compatibility (Schroeder, Clark & Cathey, 2011). Another development in the FASB/IASB relationship took place...
Words: 1158 - Pages: 5
...Accounting Standards Boards ACC/541 Accounting Standards Boards Whether it be international or here at home in America is it of the upmost importance to have an agreed upon set of standards in which people agree upon. Accounting is no different in dealing with people who need to have a set of standards in order to make sure everything is uniform. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are two sets of standards boards that have an interesting relationship between them. Some of the topics I will cover is a brief break down of the two boards, a brief history of their relationship, and the ways the two are similar. International Accounting Standards Board (IASB) was established in 2001 when it took over for its predecessor (IASC) International Accounting Standards Committee. Its job is to create and establish a set of accounting procedures and standards to be used universal around the world. Created by the Financial Accounting Foundation (FAF), Financial Accounting Standards Boards (FASB) was established back in 1973 and essentially is in charge of governing and setting forth accounting procedures and principles in which nongovernmental businesses must follow. These two boards have begun working together on projects in order to help improve the US (GAAP) Generally Accepted Accounting Principles and the International Financial Reporting Standards (IFRS) so that they are fully compatible in the future when...
Words: 707 - Pages: 3
...Accounting Standards Board Juanika Hogue ACC 541 – Accounting Theory and Research September 8, 2014 Valerie Turnbow The FASB begin with the abolishment of the APB (Accounting Principles Board) after the recommendation of the Wheat committee in 1972. The IASB is a private board created in 1973 to create accounting standards to be observed worldwide. Beginning with the Norwalk agreement in 2002 the FASB and the IASB committed both entities to making mutually compatible standards both foreign and domestic. The rules of the FASB/IASB only govern financial accounting: how a company communicates with its investors and debtors. The Norwalk agreement also commits the two boards to coordinate the two programs. The Sarbanes-Oxley Act of 2002 authorized the SEC to recognize the rules of the private boards as long as they consider international convergences on accounting principles to protect the investors. The FASB focuses on U. S. accounting standards and the IASB focuses on global accounting standards. “The IASB and FASB are working together to combine various accounting and financial reporting requirements developed by both entities into single international financial reporting standards.” (S. Carty). The two boards are making one standard because having different standards made it difficult for international companies to know which standard to follow. Having on standard made it easier for companies to follow and make financial reporting transparent. The two boards do...
Words: 591 - Pages: 3
...Accounting Standards Boards Name ACC/541 Date Instructor Name Accounting Standards Boards The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) first converged in 2002 following the Norwalk Agreement (Whittington, 2007). The convergence was inspired by the need of the boards to produce a solid infrastructure by uniting the two frameworks represented by each board in a bid to harmonize accounting practices worldwide (Whittington, 2007). Additionally, the convergence was also inspired by the need to attain improvement in accounting standards by achieving completeness, and improving coherence (Whittington, 2007). In the IASB framework for example, Bullen, and Crook (2005) note that there were specific areas of difficulty that benefited from the convergence. Some of these areas include the explicit meaning of what liability is, and the distinction between equity and liability. Joining Forces During the FASB/IASB convergence announcement in 2002, the two boards stated that they would work together to develop accounting standards that would be used for both cross- border, and domestic financial reporting. They also stated that they would work toward making their respective standards compatible, and that future work programs would be done with the need to retain compatibility (Schroeder, Clark & Cathey, 2011). Another development in the FASB/IASB relationship took...
Words: 1166 - Pages: 5
...Accounting Standards Board Paper Accounting Standards Board Paper Accounting is defined as the practice of recording, analyzing, and reporting the financial transactions of an organization (Schroeder, Clark, & Cathey, 2011). Since 1973, there has been a governing body that has determined what is considered acceptable business practices in regard to the relationship between these functions. In the United States, that governing body is known as the Financial Accounting Standards Board or FASB. FASB helped to refine and establish what is known as the Generally Accepted Accounting Principles or GAAP. These principles have laid the foundation for modern day accounting practices and have served as a road map for financial accountants worldwide. In 2001, a new board was established to bring unity to international accounting practices. It is known as the International Accounting Standards Board or IASB. IASB has its own set of standards commonly known as International Financial Reporting Standards or IFRS. Together these two entities lay the groundwork for accountants to follow to most accurately and ethically report the financial activities of their respective organizations. Although both these organizations have striking similarities and strive to serve a common goal, there are marked differences in their approach to financial reporting standards. In recent years, FASB and the IASB have affirmed their commitment to bring together their basic fundamentals and create a unified...
Words: 888 - Pages: 4
...Accounting Standards Board In the last decades, there is a significant increase in corporations, which operate in different regions of the globe, and resulted in an increased demand for global financial reporting. In this research paper, we will analyze the relationship between the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The research paper will discuss also how the Master’s of Science in Accounting (MSA) at University of Phoenix prepares students for a successful carrier within the accounting profession. The increasing number of multinational companies, especially, after 1990 s made it difficult for the accounting information users to analyze the financial statements. As a result, there is an increasing need to have one set of accounting standards to enhance comparability. Historically, the issuers of the financial statement where in the same country and had the same standards as the users of the accounting information. Many multinationals companies generate a significant part of their revenue from different parts of the world, and it became difficult to allocate efficiently the scarce resources without a reliable accounting system. Investors and creditors are skeptic to invest or lend money in corporations that operate on transnational markets without a good understanding of their financial positions. To enhance the understanding of investors and creditors there is a move to harmonize the accounting standards between...
Words: 1222 - Pages: 5
...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...
Words: 1121 - Pages: 5
...Accounting Standards Boards Carmen Morales ACC 541 Nov-12, 2012 Sonia Quintero Accounting Standards Boards The society has to follow all kind of laws, regulations, rules, or standards established by legal authorities. In accounting environment is not the exception. Two types of accounting standards boards are the ones that regulate accounting standards: the Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB). These two boards will help us to ensure if the information is done properly and are reported in a consistent way so that investors can determine what company is better to invest in. First, there will be an explanation of the relationship between the two boards and the IASB equivalents of the FASB original pronouncements. Finally, there will be an explanation of how the MSA program prepares the student for a professional life within the accounting vocation. In 1971 the board of directors of the American Institute of Certified Public Accountants (AICPA) appointed two committees: the wheat and the trueblood committee. The purpose of the wheat committee was to study how financial accounting principles should be established. The purpose of the trueblood was to determine the objectives of financial statements (Schroeder, Clark, & Cathey, 2011). In 1972 the wheat committee recommended to abolish the Accounting Principles Board (APB) and the creation of the Financial Accounting Standard Board (FASB). The new board was going...
Words: 1228 - Pages: 5
