Acc 541 Accounting Standards Board Paper

The Financial Accounting Standards Board goes through an elaborate information gathering process before issuing their standards. Firstly, an issue is identified and placed on the Board 's agenda by the Emerging Issues Task Force. Secondly, a task force of knowledgeable persons is appointed to advise the Board on the issue. Thirdly, the Board 's technical staff investigates the issue. Fourthly, a discussion memorandum on the issue is then written and distributed to interested parties. Fifthly, the

In May 2008, the AICPA’s Governing Council designated the International Accounting Standards Board (IASB) as the body authorized to establish international financial accounting and reporting principles under rule 202 and 203 of the AICPA Code of Professional Conduct. Below is an illustrative Independent Auditor’s Report on financial statements issued in conformity with IFRS.

This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This

The American Institute of Certified Public Accountants currently has over 386, 00 members since founded in 1887, under the name American Association of Public Accountants. The AICPA is integral to rule making and standard setting in the CPA profession, as well as serves as an advocate before legislative bodies and public interests groups("American Institute of Certified Public Accountants", 2010). In 1934 the New York stock exchange and the AICPA jointly published the Audits of Corporate Accounts of 1934, but a few short years later in 1938, the SEC voted to forgo this prerogative and allow the private sector to regulate its accounting practice—a policy that the commission has maintained to date. The AICPA's Committee on Accounting Procedure (CAP) assumed the financial accounting standard-setting role in 1939. The AICPA shifted this responsibility to its Accounting Principles Board (APB), equipped with its own research staff, in 1959.

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are working together to eliminate a variety of difference between the United States generally accepted accounting procedures (U.S. GAAP or GAAP) and International Financial Reporting Standards (IFRS). This convergence project grew out of an agreement reached by the two boards in 2002 (Deloitte, 2004).

The Norwalk Agreement, first announced on September of 2002, was a paramount step towards a unified global accounting standard. In this document, both U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Boards (IASB) (the Boards) “each acknowledge their commitments to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting.” (MoU Progress Report, 2008) In 2006, and subsequently updated in 2008, the boards agreed on a Memorandum of Understanding (MoU) which detailed the short and long-term

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

First, The International Accounting Standards Board (IASB) issues The International Financial Reporting Standards (IFRS) on U.S securities and exchange companies listed.

IASC was founded in 1973 to form a uniform standard of accounting and financial report to help reduce cost from handling different accounting practices and coordinating them. IASC was restructured to IASB in 2001 to increase the quality of accounting standards and to promote the use and rigorous application of those standards. (IASB, 2015). The objective of IASB is to adjust to the changing environment of international business. (IFRS, 2015).It can help set the accounting standards which are understandable and which are of high quality and is easier to implement. It helps the users to make economic

The International Financial Reporting Standards (IFRS) are one example of this, adopted in 1989 by the International Accounting Standards Board. Many of these were previously known as International Accounting Standards (IAS) issued between 1973 and 2001. However, on April 1, 2001, the IASB took over the responsibility for setting new standards to establish a framework for the preparation and presentation of financial standards. This is done, broadly, to reflect true and accurate views of the organization regardless of the country of preparation (IASB 2012).

Two years later, the AICPA joined with its Canadian and United Kingdom counterparts to investigate and compare the diverse accounting standards. They continued to meet into the mid-1970s, and published results of their findings and opinions on best practices. Then in 1973, the AICPA and its equivalents in 8 countries formed the International Accounting Standards Committee (IASC), in order “to formulate and publish, in the public interest, basic standards to be observed in the presentation of audited accounts and financial statements and to promote their worldwide acceptance” (FASB).

Convergence means that the U.S. Financial Accounting Standards Board (FASB) and the IASB would continue working together to develop high quality, compatible accounting standards over time”.

The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation. The IASB was formed in 2001 to replace the International Accounting Standards Committee and has 16 members as at July 1, 2012. (http://www.iasplus.com/en/resources/ifrsf/iasb-ifrs-ic/iasb) (21:40, October 9, 2015)

The IASC is one of the most important bodies that played a vital role in harmonizing the accounting practices. They achieved their main goal, which is issuing standards that are comparable by going through a lot of work. The work process will be briefly explained in the diagrams bellow:

IASB aims to develop in the public interest by setting a high quality accounting standards which are understandable and enforceable worldwide. The accounting standard is transparent and comparable information in the financial statements. IASB also operate to work actively with the national standard setters to bring union of national accounting standards and International Financial Reporting Standards (IFRS). These aims are set based on the consideration on providing important, reliable information which is easily accessible by the users of the IAS and to look for future development in the quality of the standards to restrain resources. In the consideration process, the staffs of the IASB are asked to identify, review and raise issues that might warrant the IASB’s attention. (IFRS, 2014, Online)