International Accounting Standards Board (Iasb) and the Us Financial Accounting Standards Board (Fasb)

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On September 28 2010, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) had declared they had completely conducted the first stage of The Conceptual Framework joint project. The purpose of this joint project is to further improve an advanced conceptual framework for International Financial Reporting Standards (IFRSs) and US Generally Accepted Accounting Practices (GAAP) (Norwalk 2010). Basically, the conceptual framework is an attempt to express the nature and purpose of accounting and when concerned to financial reporting, it was considered a GAAP statement that create a reference frame for the evaluation of current practices and the development of new ones (ACCA 2011). First of all, there is a need to develop an agreed international conceptual framework due to the reason of fills in the framework which reflects by the changes in the market, business practice, and the economic environment. Most of the frameworks are quite similar in the existing concept, but, since the concepts were developed, those concepts are improvised. In an agreed International Concept Framework, there is a need to develop because these frameworks require providing the best foundation principled based common standards to improve conceptual framework. Normally, to improve this framework the goals are updating and refining the existing concepts to reflect changes in markets, business practices and the economic environment that occurred (International Accounting Standards 2008). Moreover, according to International Accounting Standards 2008, the boards also tried to improvise few of the parts of the existing frameworks, such as recognition and measurement, as well as to fill some gaps in the frameworks. For instance, there is no definition of the reporting entity in the IASB's agreed international framework. Additionally, if a problem were occurred, then an agreed International Framework could solve it such as if a priority was provided to the issues, it was likely that will give short term standard setting benefits. The FASB is the organization that develops GAAP, while the IASB develops IFRS. International Accounting Standards Board 2010 stated that IASB is an independent and privately-funded accounting standard-setter in United Kingdom. The board involves the representatives of nine different countries and is intended to accomplish convergence in accounting standards around the world (International Accounting Standards Board 2010). IASB was dedicated to providing a single set of high quality global accounting standards which offer high quality, transparent and comparable information in general purpose financial statements in the public interest (Financial Accounting Standards Board n.d). Meanwhile, the Financial Accounting Standards Board (FASB) is the not-for-profit organization in the private sector for setting up financial accounting standards that guides the preparation of financial reports by nongovernmental entities in United States (Financial Accounting Standards Board n.d). These standards manage the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants (Financial Accounting Standards Board n.d). Cellucci n.d mentioned that these accounting standards are crucial to the efficient functioning of the economy because investors, creditors, auditors, and others heavily depend on credible, transparent, and comparable financial information. And, the purpose of FASB included developing and improving financial accounting and reporting standards for the guidance and education of the public including issuers, auditors, and users of financial information. Secondly, development of an agreed international conceptual framework would result consistency between international and local business through the very detailed accounting standards which bring out from the adoption of...
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