Fasb

With the recent expansion of the global markets, the world has saw an unprecedented growth of companies expanding their operations. The rapid development of companies has seen an increase in profit margins, they seen an explosion in revenue. Companies have established operations in nations that are across the globe, but with the introduction of technology, these facilities then appear that those operations are next to each other. The bona fide questions, is that how does the business accurately track its expenses, revenue and profit margins, and which accounting standard will they implement? Ultimately, there are two accounting standards that a company can follow to prepare their financial records. The two accounting standards that are available to the companies are the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). Both standards dictate how a company will be able to prepare their financial statements, promote understandable accounting practices and provide a high quality of solutions in accounting. Despite possessing common goals of improving the understanding of accounting principles they have several differences. Ultimately, both organizations strive to perfect accounting procedures; however it would be up to a Master’s of Accounting Science program to help a student to prepare when working with both these organizations.

The International Accounting Standards Board (IASB) is an independent group that was founded in 2001, and the IASB sole purpose is to develop international accounting standards. The have four principles that must be followed, which define an objective of financial statements; identify characteristics to make the information useful; define financial statements; and the concept of capital maintenance (Cellucci, R. 2011). Essentially, the IASB wants multinational corporations to practice the same methods of preparing their financial statements so that there would not be any...