Accounting Standards Convergence

Accounting Standards Convergence

Accounting Standards Board
For many years the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) seek high standards of accounting process and procedures. They are different in many aspects of accounting, although they both have some similarities in procedures that are abstracted through the Accounting Standards Board of the United States and those abroad. Making a comparison between the two can be quite interesting being that are of two different eras and have a wide effect on global economies.   The process between the IASB and FASB has been debated over the periods, in which they exist. WHAT PROCESS?   The different between culture differences has been the main objectives to the disadvantage of how information is recognized and reported.   However, the relationship to create a convergence has become more sought after since more businesses interact globally.
FASB Mission
The FASB’s mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information (Schroeder, Clark, & Cathey, 2011). To accomplish this mission FASB focus on the relevance and reliability of financial information that provides quality characteristics that are consistent and easily interpreted by all users.
History of FASB
Financial Accounting Standards Board (FASB) is a branch of the Financial Accounting Foundation (FAF) and was created in 1973. FASB abides accountability for establishing and implementing generally accepted accounting principles (GAAP). Much criticism raised notion that the Committee on Accounting Principles Procedure (CAP), which assumed the responsibilities of financial reporting and the standards that was supported by the American Institute of Certified Public Accountants (AICPA) in the early 1930’s to the late 1950’s was not functioning and needed to change for the best interest of the public. Soon...