Essay The International Accounting Standards Board

Essay The International Accounting Standards Board

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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...


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...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.

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