Essay The International Accounting Standards Board

Essay The International Accounting Standards Board

Length: 1090 words (3.1 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

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 standard that will help accounting statements be read and understood globally; not to mention how the MSA program prepares them to be professional in life in their accounting profession.

The IASB is the international standards board in compare to the FASB is the accounting standard board of the United States (U.S.). The goal of the FASB is to make the Generally Accepted Accounting Principles (GAAP). IASB’s goal is to come up with an international standard in financial reporting statements. There are many differences between each boards standards and their accounting principles. Despite their differences they are working together to come up with a global standard for accounting. They both agreed to work together and come up with standards and accounting principles that could be applied globally. The FASB encourages an approach based on rules is different from the IASB principle which is based on terms of processes, organizations and techniques.

The IASB’s International Financial Reporting S...

... middle of paper ...

...s an education model. Even though each state have different regulations to meet the requirements to become a Certified Public Accountant (CPA), the program is designed to meet most of these regulations for the exam. Lastly, the MSA program is made to prepare students for the CPA exam and many different professional careers in accounting.

The paper has briefly talked about the IASB and FASB, their history, current projects, relationship and the corresponding of original statements. These two boards have committed themselves to the convergence of accounting standards. This convergence can be achieved through the development of high quality and common standards. With the consistency of the established guidelines the assistance from the Securities and Exchange Commissions (SEC) and the European Commission the IASB and FASB are working toward coming up with common goals.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on The International Accounting Standards Board

- On April 1, 2001, the International Accounting Standards Board (IASB) was created to replace the International Accounting Standards Committee (IASC). One of the many roles that the IASB plays is the creation and issuance of International Financial Reporting Standards (IFRS). Defined, IFRS is the standards and interpretations set forth by the IASB and its predecessor IASC. Two of the most recent regulations set forth by IFRS after the Enron scandal are IFRS 10 and IFRS 12. IFRS 10 addresses the consolidation of financial statements by an entity when it controls one or more child companies or special entities....   [tags: International Financial Reporting Standards]

Strong Essays
1252 words (3.6 pages)

The International Accounting Standards Board Essay

- According to Buchholz and Pilato (2014), there are approximately fourteen thousand publicly traded companies that are regulated by the Securities and Exchange Commission (SEC). On the other hand, most of the twenty-eight million private businesses in the United States are not required to follow any financial reporting standards besides the obligations outlined by the Internal Revenue Service (IRS) when filing their yearly income tax forms (Buchholz & Pilato, 2014). However, private corporations such as Cargill, whose annual revenue exceeds one hundred twenty billion dollars must “incur significant costs each year complying with certain Generally Accepted Accounting Principles (GAAP) that wer...   [tags: International Financial Reporting Standards]

Strong Essays
1191 words (3.4 pages)

The International Accounting Standards Board Essay examples

- ... Besides that, in some situation, even know asset and liability existed, but it still hard to realized the outcome. According to agenda of IASB, they mentioned two shortcomings that have been observed of the existing IASB definitions of asset. First is likelyhood, they think definition would require that an item be certain in order to qualify as an asset. Since few things in life are certain, so they observed that few items that are commonly thought to be assets would qualify in accordance with the definition....   [tags: international financial reporting standards]

Strong Essays
1705 words (4.9 pages)

Essay about Role and Evolution of The International Accounting Standards Board

- Role and Evolution of The International Accounting Standards Board The International Accounting Standards Board, (IASB), began life as the International Accounting Standards Committee (IASC) in the 1973. The IASC was created in June 1973 as a result of an agreement by the accountancy bodies of Australia, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland and the United States. These countries constituted the Board of IASC at that time. The international professional activities of the accountancy bodies were organized under the International Federation of Accountants (IFAC) in 1977....   [tags: Accounts Accounting Business Essays]

Strong Essays
693 words (2 pages)

The Accounting Standards Board And The Securities Exchange Commission Essay

- The accounting profession, along with its standards and regulatory sources, have changed dramatically in recent years. The accounting profession and its standards once consisted of standardized financial reporting compliance; however, it has now evolved into a specialized profession influenced by its constantly evolving standards resulting in accounting and legal technicalities. Many factors constituted the change, in addition to factors that constituted the need for its change; for example, corporate scandals and a global set of accounting standards respectively....   [tags: International Financial Reporting Standards]

Strong Essays
1336 words (3.8 pages)

Proposed Revenue Recognition Revenue From Contracts With Customer By The Financial Accounting Standards Board

- The purpose of this paper is to comprehend how the proposed Revenue Recognition-Revenue from contracts with customer by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) will impact different industries and their financial reporting. Finally, the implementation of new standards will have meaningful implications for both historical and future reporting. At the end of this paper, the reader will have a better understanding of the new revenue recognition principles and the effect it will have upon financial reporting in the United States....   [tags: International Financial Reporting Standards]

Strong Essays
885 words (2.5 pages)

Essay about The Financial Accounting Standard Board

- In corporations around the world there is one thing that will be used in a daily basis, which is inventory. The inventory is a very important part of the business operation to include current asset in the balance sheet. (Kokemuller, 2016) The management of the inventory in a cost-efficiently is crucial for the corporation to ensure its generating higher revenues, profit, and minimize losses to have a successful fiscal year. (Kokemuller, 2016) There is United States generally accepted accounting principles (GAAP) and international financial reporting standard (IFRS) that are mostly used to deal with inventory of a corporation....   [tags: International Financial Reporting Standards]

Strong Essays
1235 words (3.5 pages)

International Accounting Standards For Financial Accounting Essay

- Introduction and Purpose In today’s developing industry a concern often arises is how individuals react or behaved when they were provided with various information or disclosure that impacts the business processes, opinions, and other variables have on the value of the overall firm. Behavioural research in accounting is a study come from psychology, economics and statistics roots that see how individuals make decisions when they were provided with various accounting information or disclosure. Since the beginning of 2005 many countries have adopt accounting standards issued by International Accounting Standards Board (IASB) and according to PricewaterhouseCoopers (PWC 2014) as of July 2014 th...   [tags: International Financial Reporting Standards]

Strong Essays
1110 words (3.2 pages)

Adapting International Accounting Standards Essay

- Companies in each country have to adapt and regulate their financial statements to certain requirements. They base and format their accounting standards on their national General Accepted Accounting Principles (GAAP) set by security regulators. However, in this modern globalized era, owing to too many financial differences between nations, it is increasingly difficult for entities to compare their financial records and identify trends in their financial position and performance with their competitors....   [tags: Accounting International Business]

Strong Essays
1439 words (4.1 pages)

Financial Reporting And International Accounting Standards Essay

- The IASC Board approved the IASB (International Accounting Standards Board) Framework ( in April, 1989) which was a successor of the IASC Board, and it accepted its Framework in April 2001 (Wells, 2011)[ Wells, M J. C., (2011). Framework-based Approach to Teaching Principle-based Accounting Standards., Accounting Education: an international journal., 20(4), 303-316.]. International standards are developed by IASB which are named International Financial Reporting Standards (IFRS). Although IASB took the place of IASC with its accounting standards, its IAS (International Accounting Standards) is enforced by IASB until now....   [tags: International Financial Reporting Standards]

Strong Essays
1729 words (4.9 pages)