Accounting Standards Paper

Accounting Standards Board Paper

ACC541

May 20, 2013

Accounting Standards Board

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently working on a joint venture referred to as the convergence project. There are many significant changes made in the relationship between the two Standards Boards in which the timeline range from 2002 to date. The convergence project was formed in hopes of eliminating a variety of differences between the International Accounting Standards Board and the Generally Acceptance Accounting Board (GAAP). In this paper, the reader will learn a brief history of the relations between the IASB and FASB as well as how the MSA program will prepare the student for a professional life in the accounting profession. It will also show how the two Standards Boards can affect the outcome of future accounting professionals and procedures.

History of the Two Standards Boards

The International Accounting Standards Board was established in April 2001 to replace the International Accounting Standards Committee (IASC). The IASC operated from June 1973 until April 2001. It was established in agreement by ten different countries including the United Kingdom and Canada. After the IASB was formed, it was expected to develop the International Financial Reporting Standards (IFRS). The IFRS are accounting standards used to enforce each standard. Today, the International Accounting Standards Board (IASB) is independent in which have 15 board members (R. Cellucci, 2012). They are appointed by the Board of Trustees in which another board member can be added every three to four years.

The Financial Accounting Standards Board (FASB) was established in 1973 and is the designated organization for establishing standards of financial accounting that governs the preparation of financial reports by nongovernmental organizations (FASB, 2013). The FASB replaced the Accounting...