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Fasb Convergence

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Fasb Convergence
Accounting Standards Boards
“The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently working on a joint venture referred to as the convergence project” (University of Phoenix, 2013, p. 1). As a result, both Boards have agreed to meet a deadline of June 2011 for the convergence of the accounting guidelines to be complete. Understanding their history and their relationship can help students in the MSA program to get ready for the working environment. The MSA program can help students prepare for the professional career within the accounting area.
According to "FASB" (2013), “The job of setting accounting standards in the world’s most powerful, dynamic economy falls on one organization: …show more content…
In 2001, the IASC was replaced by the IASB “(Schroeder, Clark, & Cathey, 2011, p. 82). The IASB wants to formulate and publish accounting standards and to promote them globally. The IASB currently consists of 15 individuals appointed by the trustees. The membership is based on the technical expertise. “On December 17, 2003, the IASB published 13 revised International Accounting Standards (IASs), reissued two others, and gave notice of the withdrawal of its standard on price level accounting. The revised and reissued standards mark the near completion of the IASB’s Improvements Project “(Schroeder, Clark, & Cathey, 2011, p. …show more content…
1). On July 1, 2009, the FASB ASC became the single source of generally accepted accounting principles (Schroeder, Clark, & Cathey, 2011, p. 87). Both financial boards develop standards by releasing pronouncements, bulletins, and opinions. In the United States, companies trading on a stock exchange must oblige with GAAP under the mandate of the Securities Exchange Commission (SEC). The IASB agrees on the uses of international accounting standards. First, it is a national requirement companies in a country must follow. Second, it is a basis for the development of accounting standards designed within a particular country. Third, it is a point of reference for countries that develop their own accounting standards (Schroeder, Clark, & Cathey, 2011, p.
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