Accounting Standards Board Paper

Accounting Standards’ Board Paper

The purpose of this paper is, to explain history of the relationship between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), and to discuss a possibility of the international standards integration. Also the purpose of this paper is to explain how Masters of Science in Accountancy (MSA) prepares the students for a professional life within accounting vocation.

The Financial Accounting Standards Board (FASB) was created in1973, substituting the Accounting Principles Board (APB) and the Committee on Accounting Procedure (CAP) of the American Institute of Certified Public Accountants (AICPA). FASB is recognized by the Securities and Exchange Commission (SEC) as an organization responsible for setting accounting standards in the United States of America. The primary purpose of FASB is to develop generally accepted accounting principles (GAAP) for the public’s concern. The FASB's mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information." (FASB, 2010)

The International Accounting Standards Board (IASB) is the successor of the International Accounting Standards Committee (IASC) and was founded in 2001. The IASB is responsible for developing International Financial Reporting Standards (IFRS). The goal of the IASB is to develop and issue worldwide accepted accounting standards. As a result of the IASB tendencies, the IFRS has been adopted in more than 110 countries. Canada, India and Japan will adopt IFRS in 2011, and Mexico will adopt IFRC in 2012. (IFRS, 2010)

The benefits of accepting global accounting standards are seen through providing better information for investors, creditors and the other users of the financial statements; supports raising capital overseas; understanding financial...