Accounting Standard Board Paper 3
Running Head: ACCOUNTING STANDARDS BOARDS PAPER
Accounting Standards Boards Paper
Lila Alemar
ACC 541
Shauki Smith
May 24, 2010
History of the relationship between IASB and FASB
The International Accounting Standards Board (IASB) began operations in 2001. It is an organization committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements. The IASB has developed procedures that bring transparency, predictability, and consistency (IASCF Press Release, December 2, 2007). The Financial Accounting Standards Board (FASB) began operations in 1973 and 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) and the American Institute of Certified Public Accountants (AICPA). 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 mission of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information (Financial Accounting Standards Board, n.d.). The IASB and the US FASB have been working together since 2002 to achieve convergence of International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP). A common set of high quality global standards remains a priority of both the IASB and the FASB. The boards shared objective of developing high quality, common accounting standards for use in the world’s capital markets. Both boards believe that a
Accounting Standards Boards Paper
Lila Alemar
ACC 541
Shauki Smith
May 24, 2010
History of the relationship between IASB and FASB
The International Accounting Standards Board (IASB) began operations in 2001. It is an organization committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements. The IASB has developed procedures that bring transparency, predictability, and consistency (IASCF Press Release, December 2, 2007). The Financial Accounting Standards Board (FASB) began operations in 1973 and 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) and the American Institute of Certified Public Accountants (AICPA). 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 mission of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information (Financial Accounting Standards Board, n.d.). The IASB and the US FASB have been working together since 2002 to achieve convergence of International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP). A common set of high quality global standards remains a priority of both the IASB and the FASB. The boards shared objective of developing high quality, common accounting standards for use in the world’s capital markets. Both boards believe that a
References: (2002). Convergence of GAAP & IASB Standards Aids Int 'l Credit Analysis. Managing Credit, Receivables & Collections, 2(12), 6. Retrieved from Business Source Complete database. (2000, December 2). [Press Release]. IASB tops global rankings for stakeholder participation. Identified as “high performer” for transparency and evaluation. International Accounting Standards Committee Foundation. Retrieved from iasb.org on Saturday, May 22, 2010. Financial Accounting Standards Board. (n.d.). Facts about FASB. Retrieved from http://www.fasb.org/facts/index.shtml&pf=true on Saturday, May 22, 2010. Financial Accounting Standards Board. (2006). FASB and IASB Reaffirm Commitment to Enhance Consistency, Comparability and Efficiency in Global Capital Markets. Retrieved from http://www.fasb.org/news/nr022706.shtml&pf=true on Saturday, May 22, 2010. Financial Accounting Standards Board. (2002). Convergence with the International Accounting Standard Boar (IASB). Retrieved from http://http//www.fasb.org/intl/convergence_iasb.shtml&pf=true on Saturday, May 22, 2010