Accounting Standards Board

The Accounting Standards Board - Essay

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.

Write a 1,050- to 1,400-word paper describing the relationship between the IASB and the FASB. Include the following in your paper:

* A brief history of the relationship between the two boards and the IASB equivalents of the FASB original pronouncements

The IASB and the FASB relationship

The FASB is the accounting standards board of the United States whereas the IASB is the International accounting standards board. The FASB's major purpose is to develop the GAAP (generally accepted accounting principles). The IASB's major purpose is to develop the international financial reporting standards.

There are numerous differences between the standards and accounting principles of both boards. They are working together to develop global accounting standards. IASB and FASB have agreed to work together to achieve convergence in global accounting standards and financial reporting. The FASB, which pursues a rule-based approach, differs from the IASB's principle based approach in terms of processes, techniques, and organizations.

Convergence between IFRSs and US GAAP

The IASB's IFRS pronounces principle-based standard that do not provide adequate attention to specific application guidance. On the other hand, the FASB’s GAAP focuses on rule based standards that accompany or pay attention to a specific guidance. Both IASB's IFRS and FASB's GAAP address requirements pertaining to financial statements determined to be important to a wide range of economic decision makers. Both sets of standards put emphasis on balance sheets, income statements, cash flow statements, and statement of changes in equity as key reports that are significant to construct sufficient evaluation for making important decisions. Both sets of standards address notes to the...