Accounting Standards Boards Comparison

Standard setting boards

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Similarities and differences

Both FASB and IASB boards give attention to establishing accounting and monetary reporting standards. The FASB focus is on the USA while the IASB sets the standards globally. The two bodies often work in unison mainly because global businesses today are heading to be multinational so both standard setting bodies are making the effort or they are attempting to come up with the goals that will work globally including the U.S. The FASB independently also sets accounting standards and objectives for individual accredited public accountants who are practicing in the U.S. (Financial Executives Research Foundation, 2014).

The bodies have different reasonable value measurements and financial disclosure requirements. Each board develops diverse requirements thus making it troublesome for most global corporations to decide and identify which accounting standards they have to work with. Both FASB and IASB boards are now viewed to be combining their efforts to form a single standard in relation to the fair value and accounting disclosure requirements and criteria. In doing so it will foster and make it easier for many companies to properly to report their financial statements (Watkins, 2012).

The FASB, IASB and GASB bodies have equally developed and made for the objective of establishing corporate accounting practice and financial reporting standards. The FASB in the beginning worked to established standards for financial credit reporting for U. S. businesses and corporations as well as the IASB which is working to set international accounting standards which is easily understood and accepted worldwide. IASB requirements and specifications are less complex than the standards set by the counterpart boards like SEC and is referred to as more principle centered body in accounting (Schroeder, Clark, & Cathey, 2014). All the four bodies use a very identical process when setting...