Accounting Standards Board

Accounting Standards Boards Paper

April Jones

University of Phoenix

Abstract

Accounting is an ever-evolving field with constantly changing objectives. In this world of accounting, standards need to be set whether they are in the United States or Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The intent of this paper will be to address the relationship between the IASB and the FASB. I will provide the history of each organization and their interrelationship, in which IASB is equivalent to the original pronouncement of FASB. Furthermore, this paper will also explain the benefit of Master of Science in Accounting (MSA) program and how it guides students to future professional careers in accounting vocation.

The History and Relationship of the IASB and the FASB

The history of the International Accounting Standards Board (IASB) begins with the International Accounting Standards Committee (IASC). It was established in 1973 through an agreement made by professional accountancy bodies from Australia, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland, and the United States of America (International Accounting Standards Committee, 2014).

After nearly 25 years of achievement, the IASC proclaimed that in order to continue its role effectively, they must find a way to bring about convergence between national accounting standards and practices and high-quality global accounting standards (International Accounting Standards Committee, 2014). They needed to change its structure, so in 1997, the IASC established a Strategy Working Party to re-examine its structure and strategy. After the Working...