Accounting Standards Board

Accounting Standards Board

In recent years there have been changes to the relationship between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). These changes are important to the United States and International financial markets. These two boards have a commitment to enhance consistency, comparability and efficiency in international business since they began working together in 2002. This paper will address the relationship between the two boards, the need for the international standards, and how this will affect the Masters of Science Accounting program here at the University of Phoenix. As well as how the changes will affect future accounting professionals and procedures that will be followed.

IFRS Foundation and the International Accounting Standards Board

The International Financial Reporting Standards (IFRSs) objective is, "To develop a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles" (IFRS Foundation - International Accounting Standards Board, 2013). The headquarters are in London, and they are the successor to the International Accounting Standards Committee. They want to create standards that are high quality, enforceable, understandable, and accepted globally by establishing an independent board that is overseen by a geographically and professional board of trustees who are accountable to a monitoring board that are a part of the public capital market. They also have a relationship with investors, regulators, business leaders, and global accounting profession during the process collaborating with all to develop a thorough set of standards that all have collaborated on. Currently the foundation strives to have a balance of trustees from all professional and academic backgrounds. These trustees are responsible for appointing members to the International Accounting Standards Board...