Accounting Standards

Accounting Standards

Accounting Standards Boards

Accounting Theory and Research / ACC 541

August 1st, 2011
Heber Howard

Accounting Standards Boards

In this paper work I will present two Accounting Standards Boards.   The first one is: The International Accounting Standards Board (IASB) that it is responsible for developing International Financial Reporting Standards (the new name for International Accounting Standards issued after 2001), and promoting the use and application of these standards.   The second one is the Financial Accounting Standards Board (FASB), which is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public's interest.

      In addition, I will mention about the relationship between the two boards and the IASB equivalents of the FASB original pronouncements.   Moreover, the FASB mention about six key initiatives to achieve the goal of convergence of U.S. GAAP and the International Financial Reporting Standards.     In the second point of this paper work, I will explain how the MSA program can help and prepare the students for a professional life within the accounting vocation.
Relationship between IASB and FASB
      Let is start defining what is International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB).   Let says that the IASB is working hard to develop accounting principles that will be accepted by all countries.   It would be good if all the countries accepted these standards, because all the companies around the world can develops financial statements according with IASB. In addition, the companies would be able to trade stocks and get financing anywhere in the world.   The IASB is responsible for developing International Financial Reporting Standards and promoting the use and application of these standards.
      The FASB has been the designated organization in the private sector for establishing standards...