The Financial Accounting Standards Board (FASB), is a professional standards board created by accountants to establish Generally Accepted Accounting Principles (GAAP),…
The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities.…
The International Accounting Standards Committee was formed in 1973. This committee was the first international standard-setting body. In early 2001, this Committee was reorganized and became the the International Accounting Standards Board (IASB) to independently develop and establish a single set of accounting procedures for international business. Since the reorganization of the IASB, the use of these international financial reporting standards (IFRSs) have been required or permitted in over 100 countries, including the European Union ("What Have IASB And FASB Convergence Efforts Achieved?", 2013). The IASB aims to make the entire world follow guidelines for financial reporting to make use and comparability of financial reports more consistent across all geographical areas.…
Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting. Those standards govern the preparation of financial statements. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are important to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.…
The purpose of this paper is to review, compare, and show the contrast between the two accounting standard boards; Governmental Accounting Standards Board (GASB), and the Financial Accounting Standards Board (FASB). The objectives of both Boards will be discussed as well as similarities and differences with each. The topic will then review modified accrual basis of accounting and how it differs from full accrual accounting.…
The FASB has been establishing accounting standards for the private sector ever since 1973, when it was formally formed. The FASB is documented as the commanding team by the American Institute of Certified Public Accountants and the Securities and Exchange Commission. The FASB is a private organization. The FASB is predominantly responsible for the establishment of accounting rules and reporting standards. The main assignment of the FASB is to improve accounting standards and to ensure that financial reporting is correct. The FASB oversees that reporting from nongovernment entities provides useful…
The purpose of this research paper is to summarize research on codification topic 410 based on the information found in different academic databases. The first part of the paper will focus on the FASB Codification database. The second part of the paper will compare and contrast three other databases on the same codification 410 within the RIA Checkpoint databases: AICPA: Auditing and Accounting Guides, SOX Reporter, and GAAP Practice Manual. A summary of benefits and issues with the searches of each database will also be discussed.…
Financial accounting standards board (FASB) standard categorizes the major sources of generally accepted accounting principles (GAAP) as:…
In 1934, the Securities and Exchange Commission (SEC) required all publicly traded companies to file periodic financial reports to be endorsed by members of the accounting industry. The AICPA established accounting standards until 1973, when the Financial Accounting Standards Board (FASB) was launched to set standards for private…
This section deals with certain general background considerations and information related to the FASC and the answers can be found by clicking the “About the Codification” and “Notice to Constituents” sections on the FASC Welcome Page. This section is a good general source of information about the FASC and should be reviewed prior to starting to answer the specific questions set forth in all sections. The related research questions that you must answer are:…
The American Institute of Certified Public Accountants (AICPA) was founded in 1887, the AICPA represents the AICPA represents all Certified Public Accounts (CPA) nationally regarding rules and regulations and also serves as advocate to public interest groups and other professional organizations. The AICPA develops standards regulations, educates its members on various directions, monitors and enforces compliance and ethical standards.…
Formally known as the American Association of Public Accountants (AAPA) in 1887, the American Institute of Certified Public Accountants (AICPA) was renamed in 1957. With over 400,000 members, the AICPA provides services on a professional level and works with state CPA entities to ensure the public is protected. According to Mintz and Morris (2011), “The principles of the AICPA Code are aspirational statements that form the foundation for the Code’s enforceable rules. The Principles include (1) Responsibilities; (2) The Public Interest; (3) Integrity; (4) Objectivity and Independence; (5) Due Care; and (6) Scope and Nature Services.”…
Limited Liability: Feature that enables a corporation to raise more money than proprietorships and partnerships.…
Becoming an accountant there are many guidelines and regulations that one must become aware of. The FASB assists in establishing these guidelines through generally accepted accounting principles, GAAP. As an accountant one must follow GAAP while producing any reports for a business. Consequently, the author will explore the FASB Codification System, its purpose, and contents.…
The Securities and Exchange Commission (SEC) has control over rules regarding “companies publicly offering securities for investment dollars” (U.S. Securities and Exchange Commission, 2012). Although the SEC is not in control over the rules regarding privately held companies, their influence over auditing exists regardless of control being public or private. This is because the SEC’s opinion is considered by the Financial Accounting Standards Board (FASB) which established the generally accepted accounting principles (GAAP) (Arens, 31).…