Relationship between IASB and FASB AC
Many companies in the world now are expanding and operating their businesses in different countries that are required the understanding and practicing of accounting principles, not only in their local countries but also in foreign countries. There are many challenges that they have to face with such as languages and currencies when recording and preparing the financial reports. Imaging that if the investors and creditors are not able to read and understand the financial information, they will not invest or loan money. For these reasons, International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) have been joined and worked together on convergence project since 2002 for the purpose of combining US accounting standards and global standards into a single International financial reporting standards. This paper will discuss about the history and the relationship between International Accounting Standards Board and Financial Accounting Standards Board. It also evaluates the IASB equivalents of the FASB original pronouncements. Finally, this paper will explain how the MSA program prepares the student for a professional life within the accounting vacation.
With the fast growing number of multinational businesses, International Accounting Standards Board (IASB) was created. It was based in London and was a first international standards setting body. In 2001, it was taken over and restructured from the former part time IASC which was founded in 1973. The international standards have expended quickly with the changes. The purpose of IASB is harmonizing the international accounting standards (Schroeder, Clark, & Cathey, 2011). In order to help the multinational corporations that face to the cost and time issues when seeking for capital or investment chances over the national borders and they have to prepare the financial statements following to the international accounting standard rules, IASB comes to two objectives: “First is to
With the fast growing number of multinational businesses, International Accounting Standards Board (IASB) was created. It was based in London and was a first international standards setting body. In 2001, it was taken over and restructured from the former part time IASC which was founded in 1973. The international standards have expended quickly with the changes. The purpose of IASB is harmonizing the international accounting standards (Schroeder, Clark, & Cathey, 2011). In order to help the multinational corporations that face to the cost and time issues when seeking for capital or investment chances over the national borders and they have to prepare the financial statements following to the international accounting standard rules, IASB comes to two objectives: “First is to
References: Schroeder, R.G., Clark, M. W., & Cathey, J. M. (2011). Financial accounting theory and analysis: Text readings and cases (10th ed.). Hoboken, NJ: Wiley. Financial Accounting Standards Board. (2012, March3). Facts about FASB. Retrieved March3, 2012, from Financial Accounting Standards Board: http://www.fasb.org/facts/index.shtml J.E. Campbell, H. M. Hermanson, and J.P. McAllister, “Obstacles to International Accounting Standards Convergence, “CPA Journal (May 2002): 20-24.