Accounting Standards Board Paper
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ACCOUNTING STANDARDS BOARD PAPER
CHANTE M. FONTENOT
UNIVERSITY OF PHOENIX
The relationship between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) is one that is continuously growing. Both have the same task which is to seek constant improvement and regulations of financial reporting.
The IASB began its origination in 2001. It was formally named the International Accounting Standards Committee. The IASB was formed to develop accounting standards world-wide. (International Accounting, 2002) Similar to the FASB, the IASB formed a committee to review issues associated with a certain topic then creates an outline to present to the Board.
The FASB was formally named the Accounting Principles Board (APB). The FASB was formed to continue progress on the refinement and improvement of accounting standards and practices.
The pronouncements of the IASB are those that were originated by the International Accounting Standards Committee. The pronouncements were voted to be retained by the IASB unless they were replaced by new pronouncements. (International Accounting, 2002) The FASB originally issued two types of pronouncements, Statements and Interpretations. Later, two new series of releases were established, Statements of Financial Accounting and Technical Bulletins. These releases were issued to enable financial statement users to better understand the content of financial accounting information.
Both the FASB and the IASB have the equal tasks of improving the usefulness of financial reporting, retaining standard to reflect changes in methods of doing business and to improve the common understanding of the nature and purpose of information contained in financial reports. Harmonizing the accounting standards will be a difficult task because of the differences in various cultures. It appears to be a never-ending project for both the IASB and the FASB.
The MSA program prepares students for a...
CHANTE M. FONTENOT
UNIVERSITY OF PHOENIX
The relationship between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) is one that is continuously growing. Both have the same task which is to seek constant improvement and regulations of financial reporting.
The IASB began its origination in 2001. It was formally named the International Accounting Standards Committee. The IASB was formed to develop accounting standards world-wide. (International Accounting, 2002) Similar to the FASB, the IASB formed a committee to review issues associated with a certain topic then creates an outline to present to the Board.
The FASB was formally named the Accounting Principles Board (APB). The FASB was formed to continue progress on the refinement and improvement of accounting standards and practices.
The pronouncements of the IASB are those that were originated by the International Accounting Standards Committee. The pronouncements were voted to be retained by the IASB unless they were replaced by new pronouncements. (International Accounting, 2002) The FASB originally issued two types of pronouncements, Statements and Interpretations. Later, two new series of releases were established, Statements of Financial Accounting and Technical Bulletins. These releases were issued to enable financial statement users to better understand the content of financial accounting information.
Both the FASB and the IASB have the equal tasks of improving the usefulness of financial reporting, retaining standard to reflect changes in methods of doing business and to improve the common understanding of the nature and purpose of information contained in financial reports. Harmonizing the accounting standards will be a difficult task because of the differences in various cultures. It appears to be a never-ending project for both the IASB and the FASB.
The MSA program prepares students for a...