Accounting Standards Boards Paper
IASB or the International Accounting Standards Board and the FASB or Financial Accounting Standards Board is both related to accounting. Though the IASB and FASB have come together in most of their functions, they are still different in many aspects. When comparing their origin, the International Accounting Standards Board came into existence on April 1, 2001. The IASB can be called as the successor of International Accounting Standards Committee.
The IASB deals with the development of International Financial Reporting Standards and promotes the application of these standards. The IASB based in the UK capital of London is an accounting standard setter, which is independent and funded privately. The FASB is based in the United States and came into existence in 1973. It replaced the Accounting Principles Board (APB) and the Committee on Accounting Procedure (CAP). The FASB is a non-profit organization, which caters to the development of Generally Accepted Accounting Principles (GAAP) in the interest of the public. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) both work toward the goal of developing and enforcing financial reporting standards for publicly held companies. Though both the IASB and FASB have the goal of establishing accounting and financial reporting standards, the FASB focuses on accounting standards in the United States, while the IASB focuses on global standards. Since many companies operate businesses globally, the IASB and the FASB often work together with both entities contributing toward global accounting standards. The FASB also sets standards and rules for individual certified public accountants practicing in the United States. Having one set of global accounting standards not only makes it easier for companies to follow to the correct financial reporting standards, but it also makes their financial reporting more transparent. Using one set of...
Please join StudyMode to read the full document