Accounting Standards - Short Essay

Accounting Standards
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are working on a joint venture known as the convergence project. With more business’s doing business globally financial reporting is an issue among the differing countries. Some countries report their financial differently, while the United States uses Generally Accepted Accounting Principles (GAAP) the convergence project aims at making a uniform set of international accounting standards. This paper is going to give a brief history of the relationship between the two boards and the IASB equivalents of the FASB original pronouncements. This paper will also explain how the Masters of Science in Accountancy (MSA) program prepares a student for a professional life within the accounting vocation. The Financial Accounting Standards Board (FASB) was created in 1973 after growing criticism of the Accounting Principles Board (APB), thus the APB was abolished and the FASB was created (Schroeder, Clark, & Cathey, 2011). “The FASB’s mission 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”(Schroeder et al., 2011, p. 9). The International Accounting Standards Board (IASB) which is an independent private sector body; was formed in 1973 for the purpose of simplifying the process of international business’s financial reporting and to harmonize and coordinate the countries engaged in setting accounting standards. “The goal of the FASB’s Short term International Convergence Project is to remove a variety of individual differences between U.S. GAAP and the International Financial Reporting Standards (IFRS) that are not within the scope of other major projects”(Schroeder et al., 2011, p. 93). The MSA program is designed to get a student ready to take the Certified Public Accountant exam. The classes for this degree...
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