Tyco Industries

Accounting Standards Board-FASB and IASB

Jerrel Jones

ACC/541

May 1, 2012

Heber Howard

Accounting Standards Board-FASB and IASB

In today’s ever changing economy, rules and regulations are continuously altered to support the needs of the economy. In the financial world, standards are set to monitor the corruption that goes on in the world of accounting. The Accounting Standards Board currently operates under two distinct panels that are known as the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). These two entities govern the accounting principles that make up the financial system. Each body both work toward the goal of setting up financial standards for companies which are publicly traded through the markets.

The Financial Accounting Standards Board (FASB) was adopted in 1973 and was charged with issuing accounting principles for the United States. Its primary focus is to make sure that the accounting standards in the United States are being followed. The FASB focuses on the publicly traded companies in the United States and also individual certified public accountants who practice accounting in the United States. ("Fasb Convergence With The Iasb", 2011).

The International Accounting Standards Board (IASB) is the accounting board that monitors accounting practices on a global level. Corporations operate on a global level, which means more work for the IASB. The IASB is located in London, United Kingdom. Its body is made up of members who live in different nations. The IASB standards are used broadly because of the impact of the markets. ("Fasb Convergence With The Iasb", 2011).

The FASB and the IASB have been working together on a joint effort to promote better accounting standards for companies who operate on a global level. Each party is trying to develop an international financial standard that would help companies correctly report their financial reports. An example of this...