Accounting Standards Boards Paper

Accounting Standards Boards Paper

The International Accounting Standards Board (IASB) was created after the Financial Accounting Standards Board (FASB) to institute a distinct set of accounting procedures and standards for both boards. This process has not always been an easy one, but the goal of merging the accounting standards globally overrides the disagreements. Overwhelming obstacles, such as culture, language, economic, and political environments has made this progression unpredictable. The FASB and IASB has remained to toil on the short term aims established at the Norwalk Summit.

History

The FASB was establish in 1973 and has be a tool that is primarily designed for the private sectors in order to set standards for financial accounting and reporting in the U.S. The standards will govern all of the financial reports. The Securities Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA) were officially recognized as there authoritative. 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”. The IASB was establish in March of 2001 and it is an independent company that derives from IFIS Foundation. Since 2013 the European Union and more than 100 other countries are requiring them to use these principles. The mission of the IASB is “to develop a single set of high quality, understandable and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements (Simon & Servais, 2012)”. The main purpose of the FASB is improve the corporate accounting practices and improve guidelines that is designated for

accounting reports, and they also want to be able to recognize and resolve any issue that may occur in real-time manner. By doing this the FASB will be able to set standards across the...