Financial Accounting Boards

Accounting Standards Boards

Introduction

In the financial world today companies are required to comply with numerous accounting regulations. There have been several regulatory bodies created to establish and monitor the numerous accounting regulations. These regulations not only contribute to the success of the world’s companies but they also the protect investors that contribute to the success of these companies.

The Financial Accounting Standards Board

The Financial Accounting Standards Board (FASB) oversees and constructs the reporting standards for financial accounting for the public to view. Standards are imperative, due to the decisions made about the administration of resources; these standards aid companies and the economy to operate cohesively, because the FASB relies greatly on concise, understandable, and reliable financial information. The information submitted reflects the companies financial position and the operations of one entity. The information received enables the public to make their next move. In order for the FASB to achieve its objectives the FASB performs the following functions and services. The mission of the FASB 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, 2007). The companies achieve this mission through striving to perfect the practicality of reports in regards to relevance and reliability, maintaining the currency of standards with the changes in business, reacting without delay to deficiencies in reporting, promoting the worldwide assembly of standards, and striving to improve the understanding of key concepts in financial reporting (FASB, 2009). The FASB advocates international comparability of accounting standards and increasing the value in financial reporting. Finally the FASB makes every attempt to increase the public’s approach and knowledge of the effectiveness and...