Comparing The International Accounting Standards Board And The Financial Accounting Standards Board (FASB)

1090 Words5 Pages
Both the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are getting together to make one global standard. This standard will be applied globally to all accounting statements produced. There are many great benefits in having one accounting standard that can be applied globally. Although coming up with this global standard is a hard process since there are many things the Boards have to consider. The board have to consider the way the standard engages many governments, investors and companies while at the same time the involvement of other countries and their social development and culture which can be hard to an agreement. The IASB and the FASB are currently working together to come with a…show more content…
Current financial reporting crisis in the U.S. implores the need to come up with a better accounting standard that ought to be acceptable internationally. Companies looking for investment or capital opportunities across national boundaries tend to face high costs and time issues. These firms need to reconcile their financial statements to comply with the accounting rules of the nation. Both of the IASB and FASB have come up with standards that will progress the efficiency of global capital markets by lowering cost of capital, improve comparability, and enhance corporate authority (Schroeder, Clark, Cathey, 2005). The objective of the current goals is to provide a time frame for the junction efforts in the perspective of removing the need of the agreement between both of the boards. There are several dissimilarities that can be compared between FASB’s original statements and the IASB statements. There are differences because of standards, program goals, time, alternative and/or related guidance that may be required by the IASB yet not by the FASB. The intention of understanding the differences or the similarities will relate to the understanding of the challenges that the borads will face in the convergence project. The goal of the IASB and FASB is to come up with a set of high quality of global standards for a long

More about Comparing The International Accounting Standards Board And The Financial Accounting Standards Board (FASB)

Open Document