on private entities to establish financial accounting and reporting standards” (Donald Kieso‚ 2003‚ Intermediate Accounting). The two most influential standard-setters are the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). FASB & IASB are currently working jointly to establish a single set of universal accounting concepts‚ standards‚ and reporting procedures with the goal of implementing standard global accounting practices. To compile their
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performance. Different stages involved in financial accounting are governed by certain standards set by organisations such as The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The standards made by IASB are known as International Financial Reporting Standards (IFRS) and by FASB is known as Generally Accepted Accounting Principles (GAAP). IFRS is applicable in international level and GAAP is used mainly in the United States. What is meant by a ‘conceptual
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Financial Accounting Standard Board (FASB)‚ private non-profit organization responsible for developing and interpreting the (GAAP) in the United States but it is not affiliated with US government. Two committees were created by the AICPA in 1971. The Wheat committee was in charge of determining how the accounting principals were to be established. This committee suggested that the original accounting principal board be eliminated and it was replaced with the FASB “this new board was to comprise representatives
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The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently‚ the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards‚ it is necessary to understand their histories‚ relations between the boards‚ and the standards that they set. Also
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Intermediate Accounting Project Assignment #1 AIA2-1 (Financial Reporting Issues: The Procter & Gamble Company) a) Proctor and Gamble’s revenue recognition policies state that the customer recognizes revenue upon either date of shipment or date of receipt; e.g. when the product or receipt has switched hands. They also record revenue net of sales‚ trade promotion spending‚ and other taxes on behalf of governmental authorities. All of these transactions are generally recorded at time of
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when studying Advanced Financial Accounting topics. 7 Chapter 2 : Regulation in Financial Accounting 2.1 Advanced Financial Accounting the FunCtion oF FinanCial aCCounting and reporting The International Accounting Standards Board (IASB) in their Conceptual Framework for Financial Reporting state that ‘the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors‚ lenders and
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Initiatives taken by International Organisation Securities Commission (IOSCO) towards propagating International Accounting Standards (IASs)/ International Financial Reporting Standards (IFRSs)‚ issued by the International Accounting Standards Board (IASB)‚ as the uniform language of business to protect the interests of international investors have brought into focus the IASs/ IFRSs. The Institute of Chartered Accountants of India‚ being a premier accounting body in the country‚ took upon itself
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Chapter 1 Financial Accounting and Accounting Standards Intermediate Accounting‚ 15th Edition Kieso‚ Weygandt‚ and Warfield 1 Financial Statements and Financial Reporting • Goals or purpose of (financial) accounting – Identification‚ measurement‚ and communication of financial information about – An economic entity to – Interested Parties (internal and external) • Creditors‚ managers‚ unions‚ government agencies Financial reports (statements) & notes 2 Financial Statements
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References: 1. Jay Godfrey (2010)‚ Accounting Theory‚ 7th Edition‚ viewed on 10/11/2013 2 9. Paul Pacter‚ CPA‚ PH.D.‚ (February‚ 2013)‚ What have IASB and FASB convergence efforts achieved?‚ viewed on 26/11/2013‚ Available from: http://www.journalofaccountancy.com/Issues/2013/Feb/20126984.html 12. Nation News‚ (May 27‚ 2013)‚ Long push for new accounting standards‚ viewed on 26/11/2013‚ Available at:
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In the United States they have their own conceptual framework; they have not adopted either IFRSs or the IASB Framework. Both the IASB and the US Conceptual Frameworks are considered to have shortcomings. As a result‚ the IASB and FASB are jointly developing a revised conceptual framework. A revised conceptual framework is also necessary because of the joint efforts of the IASB and FASB to converge their accounting standards‚ with uniform accounting standards there is also a need to have a uniform
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