Accounts Standard

Abstract

The United States of America has a huge influence on the accounting standards in use around the world. The USA follows the Financial Accounting Standards Board (FASB), which has many standards that are disseminated by the international accounting standards committees. The rest of the world follows the International Accounting Standards Board (IASB). The IASB is headquartered in London, England and is an independent and privately-funded accounting standard-setter (International accounting standards, 2010). The board consists of representatives from nine different countries and is designed to achieve convergence in accounting standards around the world (IASB international, 2010).

Accounting Standard Paper

Over the years, the relationship between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) has made several significant changes. The IASB and FASB have undertaken several projects to try eliminating the many differences between U.S. GAAP and the International Financial Reporting Standards. This paper covers a short history of the IASB and FASB relationship and explains how the MSA program prepares students for a career in accounting.

History of IASB and FASB

The International Accounting Standards Committee, formed in 1973, was the first international standards-setting body. In 2001, a reorganization took place the International Accounting Standards Committee became a self-regulating international standard setter, and this organization was renamed to the International Accounting Standards Board (IASB). From then to now the use of international standards has evolved and in 2013, the European Union and about 100 other countries were required to use international financial reporting standards (IFRSs) that the IASB have issued.

Since 2002, the IASB and FASB are working together to improve and link IFRS and U.S. generally accepted accounting principles (GAAP). The amalgamation of global accounting...