Difference Between FASB And IASB

The Financial Accounting Standards Board and International Accounting Standards Board have functions that deals with the improvement of accounting standards. Creating new standards, revising current standards, and collaborating together to make comparability easier between each other are just a few of the many responsibilities FASB and IASB hold. Although these two boards work together in collaboration efforts, they are very different in whom they function for and the process in which they go through to set new standards. FASB is “based in the United States and came into existence in 1973” (S,P. 2017). FASB strives to “improve financial reporting for the benefit of investors and other users of financial information in U.S. capital markets” (“FASB,” n.d.). These high-quality standards are known as GAAP (Generally Accepted Accounting Principles). FASB starts out the standard setting process by identifying the issue, they then add a project to the agenda. The Board will deliberate at one or more public meetings and then issues an exposure draft. After some input, the Board deliberates at public meetings, and then the ASU is issued and the ASC is

2017). The International Accounting Standards Board “is an accounting standard setter which is independent and funded privately” (S,P. 2017). This Board consists of sixteen members who are “chosen based on their professional competence and practical experience” (S,P. 2017). When decisions are made, the approval of nine members is required for publication of a standard exposure draft. IASB begins the standard setting process by adding a project to the agenda where the project is then planned. A discussion paper is developed after public consultation and then an exposure draft is developed and published. After the standard is developed and published, IASB holds meeting to identify issues raised by the standard and for educational