Introduction to U.S. Gaap , Iasb & Fasb Usage, Adoption & Status of Ifrs Convergence Ifrs

Topics: International Financial Reporting Standards, Financial Accounting Standards Board, International Accounting Standards Board Pages: 8 (2195 words) Published: May 26, 2013
Usage, Adoption & Status of IFRS
Convergence IFRS & US

The U.S. GAAP (United States Generally Accepted Accounting Principles), the U.S. accounting rules, the financial accounting and the financial statements of the company rules. Already in 1938, delegated the SEC (Securities and Exchange Commission - U.S. Securities and Exchange Commission), the responsibility for the financial reporting of the profession of Chartered Accountants AICPA (American Institute of Certified Public Accountants - umbrella organization for U.S. accountants). This initially established the CAP (Committee on Accounting Procedures), which consisted of approximately 20 honorary members and 51 ARB (Accounting Research Bulletin) published on particular problems. Basic Objectives

Financial reporting should provide information that is:
* Useful to present to potential investors and creditors and other users in making rational investment, credit, and other financial decisions. * Helpful to present to potential investors and creditors and other users in assessing the amounts, timing, and uncertainty of prospective cash receipts. * About economic resources, the claims to those resources, and the changes in them. * Helpful for making financial decisions

* Helpful in making long-term decisions
* Helpful in improving the performance of the business
* Useful in maintaining records
The International Accounting Standards Board (IASB) is the independent, accounting standard-setting body of the IFRS Foundation. The IASB was founded on April 1, 2001 as the successor to the International Accounting Standards Committee (IASC). 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. Foundation

On January 25, 2001, the International Accounting Standards Foundation (IASF) was incorporated as a tax-exempt organization in the US state of Delaware. On February 6, 2001, the International Financial Reporting Standards Foundation was also incorporated as a tax-exempt organization in Delaware. The International Accounting Standards Board (IASB) is the parent entity of the IFRS Foundation, an independent accounting standard-setter based in London, England. On 1 March 2001, the IASB assumed accounting standard-setting responsibilities from its predecessor body, the International Accounting Standards Committee (IASC). This was the result of a reorganization based on the recommendations of the report Recommendations on Shaping IASC for the Future. Members

The IASB has 14 Board members (12 are full time members and 2 are part time) each with one vote. They are selected as a group of experts with a mix of experience of standard-setting, preparing and using accounts, and academic work. At their January 2009 meeting the Trustees of the Foundation concluded the first part of the second Constitution Review, announcing the creation of a Monitoring Board and the expansion of the IASB to 16 members and giving more consideration to the geographical composition of the IASB. The IFRS Interpretations Committee has 14 members. Its brief is to provide timely guidance on issues that arise in practice. The members (as of July 2011) are:

* Hans Hoogervorst (Chairman)
* Ian Mackintosh (Vice-chairman)
* Stephen Cooper
* Phillipe Danjou
* Jan Engström
* Patrick Finnegan
* Amaro Luiz de Oliveira Gomes
* Prabhakar Kalavacherla 
* Dr Elke König 
* Patricia McConnell
* Takatsugu Ochi 
* Paul Pacter 
* Darrel Scott 
* John T. Smith
* Zhang Wei-Guo
On July 1, 2011, Hans Hoogervorst succeeded David Tweedie as Chairman. David Tweedie had served as the Board's Chairman since its creation in 2001. Due Process
The IASB...
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