The Relationship Between Fasb And Iasb

The Relationship Between Fasb and Iasb
The Relationship Between FASB and IASB Jennifer Purvis ACC 541 March 14, 2011 Delphine L.
Agnor Wolsker The Relationship Between FASB and IASB Introduction The International
Accounting Standards Board (IASB) was created after the Financial Accounting Standards Board
(FASB) to establish a single set of accounting procedures and standards for both boards. The process
has not always been an easy one, but the goal of merging the accounting standards globally
overrides the disagreements. Overcoming impediments, such as language, culture, economic and
political environments has made the process problematical. The IASB and FASB continue to labor
on the short term goals agreed upon at the Norwalk Summit, held in Norwalk, Connecticut, ... Show
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Subsequently, FASB became a supporter of improved international practices and of one set of
standards to be used globally. The IASB and FASB met in Norwalk, Connecticut, on September 18,
2002 to acknowledge their undertaking to create a "high quality, compatible accounting standards
that could be used for both domestic and cross–border financial reporting" which is known as the
"Norwalk Agreement" [ (Business Wire, 2002) ]. At this meeting, both parties agreed to craft a
congruent financial reporting practice as quickly as possible and to coordinate their impending
prospectus to ensure that compatibility would be sustained. To preserve compatibility, the IASB and
the FASB listed the following as a high priority: * Remove distinct disparities between U.S. GAAP
and the IFRS as a short–term project. * Remove the discrepancies between the IFRSs and U.S.
GAAP that will continue until January 5, 2005, which would happen with the harmonization of their
future work programs. * Cooperative projects would continue with growth. * Encourage individual
interpretations to organize their activities. The board also set a time limit for the implementation to
be completed by January 1, 2005. With the Convergence Project begun, both boards are working to
organize an integrated accounting standard. The fulfillment of this will happen in short–term
projects and realistic goals [ (Business Wire, 2002) ].
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Accounting Standard Board Paper 3
Running Head: ACCOUNTING STANDARDS BOARDS PAPER
Accounting Standards Boards Paper
Lila Alemar
ACC 541
Shauki Smith
May 24, 2010
History of the relationship between IASB and FASB
The International Accounting Standards Board (IASB) began operations in 2001. It is an
organization committed to developing, in the public interest, a single set of high quality, global
accounting standards that require transparent and comparable information in general purpose
financial statements. The IASB has developed procedures that bring transparency, predictability, and
consistency (IASCF Press Release, December 2, 2007). The Financial Accounting Standards Board
(FASB) began operations in 1973 and ... Show more content on Helpwriting.net ...
Consistently with those guidelines, and after discussion with representatives of the European
Commission and the SEC staff, the FASB and the IASB have agreed to work toward the following
goals for the IASB–FASB convergence program: Joint projects being conducted with the IASB:
Joint projects involve the sharing of staff resources, and every effort is make to keep joint projects
on a similar time schedule at each board. Short–term convergence: The goal is to reach a conclusion
about whether major differences in the following few focused areas should be eliminated through
one or more short–term standard–setting projects. Liason IASB member on site as the FASB offices:
One of the most visible features of the FASB's daily operations that promoted convergence is the
presence of a full time IASB member in residence at the FASB offices. The role was created to
facilitate information exchange and increase cooperation between the FASB and the IASB. FASB
monitoring of IASB projects: IASB projects are monitored the FASB based upon the FASB's level
of interest in the topic being addressed. The convergence research project: The project seeks to
identify the substantive differences between US GAAP and IFRS and to catalog those differences
according to the Board's strategy for resolving them. The project scope includes differences in
standards addressing

Changes in Accounting Principles: The International...
The purpose of this paper is to discuss the changes in accounting for leases according to the
International Accounting Standards Board (IASB) and the Financial Accounting Standards Board
(FASB). FASB published a release on May 16, 2013 proposing an improvement to the value and
comparability of financial statements. The goal of the IASB and FASB was to provide a greater
transparency about leverage, the assets an organization uses in its operations, and the risks to which
it is exposed from entering into leasing transactions (Fasb.org, 2013).
Keywords: accounting for leases, IASB, FASB
Changes to Lease Accounting Leasing is a very important source of financial income for a wide
range of organizations. Therefore, the way in which organizations account for leases is essential.
The standards for lease accounting had been criticized for failure to meet the needs of users of the
financial statements because they did not provide a reliable representation of leasing transactions
(Fasb.org, 2013). In 2006, the IASB and the FASB began a joint project by creating an Exposure
Draft with proposals to improve the financial reporting of leasing activities under International
Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP)
in response to the criticism. On May 16, 2013 the FASB and IASB released a revised Exposure
Draft proposing changes to lease accounting. The proposal aims to improve the quality and
comparability of financial

Assignment 1 Research Of Emerging Accou
Assignment 1: Research of Emerging Accounting Issues Abstract This paper I'll research the most
important impact that the mission of the Emerging Issues Task Force (EITF) exerts upon the
Financial Accounting Standards Board (FASB); analyze the EITF's effectiveness with finding
resolutions to emerging accounting issues by research the issues from the EITF's "Description and
Status of Current Issues" such as 9/11 and analyze at least the primary manner in which a company's
accounting and financial reporting is likely to be impacted by the work being done by the EITF on
the chosen issues example unrecognized tax benefit. Emerging Issues Task Force exerts upon the ...
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Early extinguishment happens because of extraordinary reasons and losses resulting from it should
be treated as extraordinary. (www.fasb.org) The work being done by the EITF with company's
accounting and financial reporting is likely to be impacted by the work being done by the EITF on
Issue No. 13–C, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry
forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists." A company's accounting and
financial reporting will be impacted by the work being done by the EITF in two ways. First, if the
liability for an unrecognized tax benefit is directly associated with a tax position taken in a tax year
that results in the recognition of Net Operating Loss carry–forward for that year and that Net
Operating Loss carry–forward has not been used, the unrecognized tax benefit will be presented as a
reduction to the Net Operating Loss. In this case the Income Statement is impacted and the Net
Operating Loss is reduced. Second, in all other case the Net Operating Loss carry–forward or the
Tax Credit Carry–forward should be presented as a liability. In this case the Balance Sheet of the
company will be impacted. (www.fasb.org) Against the EITF In the issue 1 requiring providing
additional guidance on the accounting anomaly

Rules Based Accounting Standards And The Decision Making...
Introduction
Nowadays, with the position of accounting becoming higher, accountants should have enough
professional abilities to solve problems or make decisions. In addition, high quality accountants
must follow a set of guiding principles for preparing financial reports during their careers.
Therefore, numerous principles and rules are significant when it comes to accounting. The External
Reporting Board (XRB) which called the New Zealand Conceptual Framework (CF) provides the
basic principles. Comparing to CF, the rules–based accounting standards includes more detailed
rules. Furthermore, the principle–based standards which based on CF provide broad points of
departure for users to apply. This essay will critically assess if the principle–based accounting
standards assists or hinders the decision making for accountants facing financial statements. Points
covered include the principle–based accounting standards '
Discussion
First of all,. there is a long time debate regarding to the relevant merits and demerits of principles
versus rules–based accounting theory when principle–based accounting standard is mentioned.
Rules–based accounting standards are filled with specific details to meet as many potential
contingencies as possible.( Rankin, Stanton, McGowan, Ferlauto & Tilling, 2012) As a result, there
will be a number of specific methods for dealing with numerous variety of entities and unique
situations. However, many different types of transaction are taking place

Ifrs And International Accounting Standards Board
In mainly everything, sports, class rooms, or work places you have a set of rules to go by. In the
accounting world, you must also follow a set of rules and standards. The Generally Accepted
Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS). Most
countries around the world use IFRS while the United States uses GAAP. International Financial
Reporting Standards and Generally Accepted Accounting Principles do things differently. Each
country's government sets which principles the accountants will use. There are also organizations
that have been formed to help with all the confusion between countries. The organizations are called
Financial Accounting Standards Board (FASB) and International Accounting Standards Board
(IASB). FASB is the organization that has been designed by the US government to establish GAAP
in the United States. IASB is the international organization developing and promoting accounting
standards to be used throughout the world. GAAP and IFRS are both accounting principles but also
have different regulations. The main difference is historical values for assets and liabilities and
current or market values. GAAP looks at the historical value while IFRS looks at current or market
values. US accountants are conservative and always look at the historical value. Accountants using
IFRS would look at the value of the land or house if it increased, even if it is not sold, while GAAP
would not look at the increasing value until it

Disclosure Of Leases On Company Financial Statements
In 1949 the AICPA released ARB No. 38 over the disclosure of leases on company financial
statements. Before this bulletin it was not normal for the lessee to disclose the fact that the company
was in a contract long–term lease of an asset. The Accounting Institute of Certified Public
Accountants felt that investors and other decision making personnel should have the right to know
about leases in which a company was contractually bound. The committee states in this bulletin that
when it clearly evident that the lessee will have ownership of the asset after all payments are made,
that the lessee should account for this in the assets and liabilities of the company's Balance Sheet.
The committee believes that the AICPA issued the opinion that all long–term leases should be
disclosed in the financial statements or the footnotes. These disclosures include the payment
amounts and other obligations assumed not only in the year in which they occurred but any material
amounts in the life of the lease. (Committee on Accounting Procedure, American Institute of
Accountants, 1949) Although, the main point of this bulletin was to address long–term leases, the
AICPA never formally defines what it means by a long–term lease which can be assumed to be what
modern day accounting defines as a capital lease. The purpose of the bulletin was not to address
short–term leases (now called operating leases) because there was no exchange of rights in these
situations. Although the above opinion was

The Financial Accounting Standards Board
The Financial Accounting Standards Board (FASB) was established in 1973 in order to create and
develop standards of financial accounting and reporting for the general use of the public and, in
particular, users of financial information including auditors, creditors and investors. This financial
information is standardized for greater clarity for the guidance and education of users (FASB org,
2009a). The primary purpose of FASB as a private and non–profit organization is to develop
Generally Accepted Accounting Principles (GAAP) in the United States. The FASB sets–up
accounting standards for public companies in the U.S. under the mandate of the Securities and
Exchange Commission (SEC). The FASB oversees the financial security; stability and ... Show more
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Since 1973 the task of creating these GAAP standards has fallen on the Financial Accounting
Standards Board or FASB. Throughout its history the FASB has helped to protect stakeholder
interests by creating standards for financial reporting. Although FASB is held accountable through
oversight, it has been the subject of much scrutiny and criticism. Despite not always being looked
upon favorably, FASB remains the authoritative standard setting board in the United States. The
Securities and Exchange Commission, or SEC, was created by the Securities Act of 1933 and the
Securities Exchange Act of 1934. This inception was in response to the stock market crash of 1929
and the subsequent depression. The government felt that it was necessary to establish standards for
preparing and auditing the financial statements of publicly held companies. The SEC was given
statutory authority to set accounting standards and also given oversight over the activities of
auditors. Originally, the American Institute of Certified Public Accountants (AICPA) set the
guidelines that all accountants must follow. From 1936 – 1959 the Committee on Accounting
Procedure was the authoritative committee that was originally responsible for defining accounting
principles for the AICPA. In 1959 it was replaced by the Accounting Principles Board of the AICPA.
The Accounting Principles Board remained responsible for establishing accounting

Can Conceptual Framework Advance The Development Of...
Can Conceptual Framework advance the development of accounting standard?
International Accounting standard Board (IASB) is 'responsible for the development of high quality
global accounting standards for use in the world's capital markets and by other users.' It is the
standard–setting body of the International Accounting Standards Committee (IASC) Foundation. It
was formed in 2001 to replace IASC. The objectives of IASC foundation are to develop a single set
of global financial reporting standard and to encourage the use of those standard.
In order to overcome the differences between national accounting practices, a lot of national
standards bodies have jointly agreed and adopted a series of International Financial Reporting
Standards ... Show more content on Helpwriting.net ...
Generally accepted accounting principles (GAAP) usually outline such standards in their
frameworks. The IASB conceptual framework would classify these into fundamental qualitative
characteristics and enhancing qualitative characteristics.
IASB emphasize the following qualitative characteristics related to usefulness of financial
information. There are Relevance, Faithful representation, Comparability, Verifiability, Timeliness
and Understandability.
Relevance of information is defined in terms of whether the information are relevant to the
decision–making needs of users, helping users to assess past, present, and future events, or to
confirm or correct their past evaluations. Relevant information must have predictive or confirmatory
value. Reliable information is free from material error and bias. Faithful representative means that
the information must faithfully and completely reflect the transaction or other company's financial
situation, either claiming to represent or may reasonably be expected to represent. Comparability
means information should be presented in an easy way to compare with information about the same
businesses for different periods; or easily compared information with different business for the same
or different period, to enable users to make significant comparisons. Verifiable means information
be tested through observations or estimation which increases representational

Accounting Regulatory Agencies
ACCOUNTING REGULATORY AGENCIES
Introduction
Accounting standards are needed so that financial statements will fairly and consistently describe
financial performance. Without standards, users of financial statements would need to learn the
accounting rules of each company, and comparisons between companies would be difficult.
Numerous accounting bodies govern the accounting environment and accommodate the success of a
business. The four main financial governing bodies include the following: Securities and Exchange
Commission (SEC) Financial Accounting Standards Board (FASB) Governmental Accounting
Standards Board (GASB) International Accounting Standards Board (IASB) ... Show more content
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While the GASB has jurisdiction over financial reporting by governmental entities, the FASB
establishes rules for private sector accounting. Both boards are independent, nongovernmental
bodies whose members are appointed by the trustees of the Financial Accounting Foundation (FAF).
Before issuing its standards, the GASB follows the set of "due process" activities enumerated in its
published rules of procedure. Due process is stringent and is designed to permit a thorough and open
study of financial accounting and reporting issues by the preparers, auditors, and users of financial
reports, in order to encourage broad public participation in the standards setting process. Significant
steps in the process are announced publicly. The GASB's meetings are open to public observation
and a public record is maintained. One difference between the two organizations is that the rules of
the GASB need not apply to that of FASB. If the GASB had not covered an accounting topic that the
FASB had, then the FASB standards would be used by the government entities. This sets up kind of
like a default so that there are not so many different rules and possibly double standards. The GASB
and the FASB both have the authority to create rules, with the GASB having the ability

International Financial Reporting Standards and Accounting...
21. General–purpose financial statements are the product of a. financial accounting. b. managerial
accounting. c. both financial and managerial accounting. d. neither financial nor managerial
accounting. 22. Users of financial reports include all of the following except a. creditors. b.
government agencies. c. unions. d. All of these are users. 23. The financial statements most
frequently provided include all of the following except the a. balance sheet. b. income statement. c.
statement of cash flows. d. statement of retained earnings. 24. The information provided by financial
reporting pertains to a. individual ... Show more content on Helpwriting.net ...
35. Which of the following statements is not an objective of financial reporting? a. Provide
information that is useful in investment and credit decisions. b. Provide information about enterprise
resources, claims to those resources, and changes to them. c. Provide information on the liquidation
value of an enterprise. d. Provide information that is useful in assessing cash flow prospects. 36.
Accrual accounting is used because a. cash flows are considered less important. b. it provides a
better indication of ability to generate cash flows than the cash basis. c. it recognizes revenues when
cash is received and expenses when cash is paid. d. none of the above. 37. One objective of financial
reporting is to provide a. information about the investors in the business entity. b. information about
the liquidation values of the resources held by the enterprise. c. information that is useful in
assessing cash flow prospects. d. information that will attract new investors. 38. Accounting
principles are "generally accepted" only when a. an authoritative accounting rule–making body has
established it in an official pro–nouncement. b. it has been accepted as appropriate because of its
universal application. c. both a and b. d. neither a nor b. 39. A common set of accounting standards
and

Generally Accepted Accounting Principles ( Gaap ) And...
Generally Accepted Accounting Principles (GAAP) and Financial Accounting Standards Board
(FASB) exist to make financial reporting consistent while reducing fraud and material errors.
Because GAAP guidance is crucial for public and private companies depend heavily upon it to make
financial decisions. Through GAAP, the entity understands how to properly carry out the accrual
accounting process and most importantly when to recognize revenue. However, what happens when
GAAP guidance is not sufficient or non–existent in its interpretations of gray areas? Here lies the
question that accountants and the crypto–currency community of bitcoin has requested answers too
for the last few years. After the release of Internal Revenue Service (IRS) tax ... Show more content
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Most entities do not have the technological capability to keep track of up to date bitcoin market
prices at the time of bitcoin exchange. Providers such as BitPay or Coinbase have effectively made
it easy to account for bitcoin by immediately transforming bitcoin into a legal unit of currency. For
this reason, the business that accepts bitcoin are transferring bitcoin to a third party and the third
party is transferring legal tender. Traditional accounting systems can then classify and record the
transaction. Due to bitcoins nature and the legality of it the IRS has classified it as property and not
currency for U.S. federal tax purposes. General tax principles that relate to property transactions
apply to transactions using bitcoin and other virtual currencies. The IRS states virtual currency has
an equivalent value in real currency, or that it acts as a convertible virtual currency (AICPA 2014).
Bitcoin is a legal, financial investment and legal for trade and exchange into United States Dollars
(USD) under IRS guidance. When receiving bitcoins as payment the coins are computed to gross
income by using the fair market value of the virtual currency on that date. Gains or losses are
classified as ordinary income or loss depending on whether the virtual currency is a capital asset in
the hands of the taxpayer. A payment made using virtual currency is subject

Financial Statements From Different Parts Of The World...
History of IASB Phillip Abbey Advanced Accounting In 1962, many at the Eighth International
Congress of Accountants voiced the need to be able to compare financial statements from different
parts of the world with a common set of standards. The American Institute of Certified Public
Accountants (AICPA) published a book on the various accounting standards and practices in various
countries. The AICPA also thought steps should be taken towards the idea of a single body of
accounting principles by reactivating a committee on international relations (AICPA 1964). The
AIPCA sought to foster the development of auditing, accounting, and reporting standards on an
international basis. Wilkinson (1965) was one of the early authors to define accounting uniformity
as "each company presents only one set of accounts for all investors, of whatever nationality." This
idea, along with many others would eventually culminate in the establishment of the International
Accounting Standards Committee (IASC) some years later. The 1970s saw the creation of the first
international accounting standard committee and began to see voluntary cooperation between FASB
and other international accounting governing bodies. Following an agreement by the AICPA and
eight other international counterparts, the IASC was founded in London on June 29, 1973. The
Board of the IASC was comprised of nine delegations of three members each that would attend
three Committee meetings. The purpose of the IASC at its

Financial Accounting Standards
FASB & IFRS
Financial Accounting Standards
The Financial Accounting Standards Board (FASB) has been around since 1973 and their
organization's duty and task is to set and provide effective and reliable financial accounting
standards in the United States. The Financial Accounting Standards Board is also a private sector
and is a not for profit organization, also recognized as U.S. Generally Accepted Accounting
Principles (GAAP). The Securities and Exchange Commission (SEC) and The American Institute of
Certified Public Accountants (AICPA) recognize their standards and consider them to have authority
and to be dependable. (Facts About Fasb). The Financial Accounting Standards Board's information
is heavily used by different people such as investors, lenders, auditors and many more to influence
their choices about how they designate their capital. (What We Do: Fasb) It also helps the different
financial markets run smoothly.
International Financial Reporting Standards The International Financial Reporting Standards "are a
set of accounting standards developed by the IASB that is becoming the global standard for the
preparation of public company financial statements." (AICPA). IASB started operating in 2001 and
is established as an independent organization that also sets accounting standards. According to the
American Institute of Certified Public Accountants, IFRS is used by roughly 120 nations all over.
Main Difference between GAAP and IFRS
According to Pologeorgis

In recent years there has been significant changes made in our understanding of the relationship
between the International Accounting Standards Board (IASB) and the Financial Accounting
Standards Board (FASB). At present both the IASB and FASB are working on a joint venture
referred to as the convergence project in hopes of eliminating a variety of differences between
International Financial Reporting Standards and U.S. GAAP. Another area covered in this paper
besides a brief history of the relationship between the IASB and FASB will be how the MSA
program will prepare students for the accounting profession. The intent of this paper will be to
address both issues first; explaining my understanding of the ... Show more content on
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is the Financial Accounting Standards Board (FASB). The FASB is a private organization
responsible for establishing a broad range of reporting standards and specific accounting rules. The
FASB has made possible for investors, creditors, auditors, and others a means of using financial
information that is transparent and comparable here in the U.S.
IASB and FASB Relationship
On November 18, 2002 the FASB and IASB came together at a meeting in Norwalk, Connecticut to
start the wheels in motion for the purpose of establishing a new set of financial standards. The FASB
and IASB are committed to create financial standards that will be accepted both domestically and
internationally that are of high quality and compatible for financial reporting. At present more than a
100 countries already use the International Financial Reporting Standards. The U.S. at present has
not accepted a changed in accounting procedures; therefore, this is going to be a major task for both
the FASB and IASB to complete successfully this union. I do believe that the partnership between
the FASB and IASB will achieve the goals of creating a common financial reporting set of standards
that will be accepted by all.
The Convergence Project
The convergence project is to be divided into a short–term and long–term process. The short–term
projects will consist of issues that can be dealt within a time frame of up to two years. In this time
frame the hope is to reduce

Disadvantages Of Accounting Convergence Essay
Accounting Convergence: Advantages and Disadvantages
Winston Churchill once said that "there is nothing wrong with change, if it is in the right direction"
(Thinkexist.com) . Today, the accounting profession and standards in the United States is facing one
of the biggest changes it has seen in a long time: the convergence of its Generally Accepted
Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS). Is this a
step in the right direction for the United States? The debate is still alive, although the change is
happening now. In this paper I will explain the convergence and then describe some of the
advantages and disadvantages to this change. Convergence is a term that means "the coming
together or ... Show more content on Helpwriting.net ...
GAAP has been around for many more years than IFRS has. Is this an advantage or disadvantage for
a move towards IFRS? Some people would argue that it is a disadvantage because the U.S. GAAP
covers almost all possible accounting issues and has also shown sustainability through its years in
practice. On the other side, the advantage to having a newer set of standards is that they will not be
as cluttered as the U.S. GAAP. But doesn't the word "convergence" mean to eliminate the
differences between the two standards? So we would be blending the best of both sets of standards
and both of these arguments would be illogical, right? That brings us to another debate about the
convergence with IFRS. If the business world would flow better with one set of accounting
standards, why are we trying to blend the two accounting standards instead of just adopting IFRS? If
over 100 countries and counting have switched to IFRS, why can't the U.S. do the same so that one
set of standards will really be attained? According to Intermediate Accounting, some of the
standards between U.S. GAAP and IFRS that differ and are long–term projects for convergence are
issues such as revenue recognition, the conceptual framework, and research and development costs
(18). All of these issues are currently being worked on between the International Accounting
Standards Board (IASB) and the Financial Accounting Standards Board (FASB). An advantage to
the conceptual frameworks for both U.S.

History Of Accounting Essays
Once upon a time, Luca Pacioli wrote a math book. It was just a little survey and should have been
treated like ordinary books of the time and read and then disappeared into historical archives and
forgotten. A few brief chapters on practical mathematics made this one special.
The time was 1494. Columbus had discovered America just two years before. The author was a
Franciscan monk.
The chapter on practical mathematics addressed mathematics in business. He said that the successful
merchant needs three things: sufficient cash or credit, an accounting system that can tell him how
he¡¯s doing, and good bookkeeper to operate it. His accounting system consisted of journals and
ledgers. It rested on the invention of double–entry ... Show more content on Helpwriting.net ...
Citing the needs of courts to employ public accountants ¡°to aid those Courts in their investigation
of matters of accounting¡± select accountants were titled ¡°Chartered Accountants.¡± The US
equivalent title is ¡°Certified Public Accountant¡±. These titles are used to this day.
The arrival of the income tax laws were another major event in accounting history. Attorneys
naturally thought that since income tax returns were legal documents, they would have exclusive
rights to prepare them. Accountants replied that since that the bulk of the work in preparing a return
involved accounting calculations, they were more properly accounting work.
The substance of the tasks trumped legal argumentation. US law firms in the 1920¡¯s were slow to
incorporate income tax preparations into their business skills. Public accountants saw a new
lucrative opportunity and jumped into tax work with both feet. By the time the lawyers challenged
the accountants for practicing law without a license, income tax preparation had been so thoroughly
identified with accountants that they lost the case.
The Great Depression rocked the integrity of the accounting profession. The British Steamship
Company was just one of the large world giants that went bankrupt just after posting large profits.
¡°How could profitable companies go bankrupt?¡± Investors asked. Court cases showed that the
economic reality was that the companies weren¡¯t profitable after all. The profits were the result of

Acc 541 Accounting Standards Board Paper
Accounting Standards Boards
Leslie Brian
ACC/541
November 14, 2011
Delphine Agnor Wolsker
Accounting Standards Boards
The field of accounting is constantly evolving. This is true not only for the theory of accounting
itself but also the entities that govern its theory and practice. Presently, the Financial Accounting
Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with
some of the biggest challenges to date. To understand the significance of these two boards, it is
necessary to understand their histories, relations between the boards, and the standards that they set.
Also how the knowledge of these boards and the field they lead, gained through the masters of
science in accountancy ... Show more content on Helpwriting.net ...
The works of the APB were known as APB Opinions. The APB was criticized as well, so the AICPA
appointed two committees, from whose recommendations the FASB was founded in 1973
(Schroeder, Clark, & Cathey, 2011, p. 5–9).
International Accounting Standards Board (IASB) As stated earlier, the IASB arose from specific
needs of the accounting industry and the public. As international trade has increased, the need for
transnational accounting information has increased as well. This sparked the demand for
development of international accounting standards to make financial data between countries more
comparable. In 1973, the International Accounting Standards Committee (IASC) was formed to
develop these international standards. The standards issued by the IASC, prior to 2001, were called
International Accounting Standards (IASs). In 2001, the IASC made the International Accounting
Standards Board (IASB) the official international standard–setting body. The standards issued by the
IASB are called International Financial Reporting Standards (IFRSs) (Schroeder, Clark, & Cathey,
2011, p. 82–87).
FASB and IASB Convergence The purpose of convergence by the two boards is to create a common
set of standards for use by both domestic and foreign entities to create internationally comparable
statements. The boards initially met in 2002 for a meeting known as the Norwalk

A Strategic Initiative On Ifrs Standards
A Strategic Initiative on IFRS Standards
The accounting world is shaped by stringent and clear rules, principles, standards and guidelines.
These are all meant to define accounting operations and reporting discipline. With the emergence of
International Accounting Standards (IAS), which was later replaced by International Financial
Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and
presentation became easier and practical. Currently, accountants, managers and related parties find it
concrete and consistent in protecting professional boundaries.
Being important to the discipline of accounting, the objectives of IFRS and IAS are to give guidance
on the presentation of financial statements. IFRS as ... Show more content on Helpwriting.net ...
The board acknowledges the diverse nature of regulatory framework in developing concrete and
uniform standards. These standards help in proposing and clarifying a complete guidance as well as
demonstrating the understanding of complex issues in accounting. Moreover, help in demonstrating
advanced knowledge in the application of accounting standards in the preparation and analysis of
financial statements.
With complete notion and awareness of how each country has their set of rules, "the goal of IFRS is
to provide a global framework for how public companies prepare and disclose their financial
statements" (Rouse, 2011). This view is meant to provide general guidelines, as well as international
comparisons through conventional and edifying means. To bring broader and vivid objectives, IFRS
replaced IAS, the older standards, in order to bring a more comprehensive and simplified accounting
procedures.
IFRS addresses practical application issues that any entity is supposed and expected to encounter
within the standards. These practical issues provide a comprehensive analysis. For instance, IFRS 1
provides extensive guidelines "...and addresses practical application issues that a first–time adopter
of IFRSs could expect to encounter when transitioning to IFRSs". (KPMG, 2009). The IFRS, being
principle–based, generally do not contradict with Generally Accepted

General Accepted Accounting Principles Of Accounting
General accepted accounting principles
Name
Institution
Professor
Course
Date
Introduction
General Accepted Accounting Principles, (GAAP) can be defined as the common set of accounting
rules, standards and protocols, set by policy boards, which financial institutions and other companies
use to assemble their financial statements. On the other hand, International Accounting Standards
Board develops and maintains the International Financial Reporting Standards, which is a single set
of accounting standards set aside with the aim of being applied internationally. As an accounting
standard used in a number of countries across the world, IFRS have proven to be more effective in
the representation of economics of transaction more than GAAP since it is based on principles rather
than rules (Bellandi, 2012).
Following the way IFRS treats acquired intangible assets, it is considered more principle based and
therefore the assets are only recognized if they will have future benefits economically and has a
measured reliability. On the other hand, acquired intangible assets are recognized at a more
reasonable value under the U.S. GAAP.
According to Chiti & Mattarella (2011), the last in, first–out (LIFO) method of accounting for
inventory costs, is not allowed under the IFRS. On the other hand, LIFO or first–in last–out (FIFO)
methods are used under the U.S. GAAP. Written inventories under the IFRS can be changed in the
future if certain criteria are met whilst these cannot be

Fasb
The International Accounting Standards Board (IASB) and the Financial Accounting Standards
Board (FASB) are two of the most important bodies of the Accounting/Finance field today. Though
both boards work together to develop and enforce financial reporting standards for publicly held
organizations, the FASB concentrates on the accounting standards in the United States while the
IASB sets its focus on global standards. The rules and standards that are set for individual certified
public accountants that practice in the United States are also set by the FASB. By introducing the
IASB and FASB into the MSA program, students are able to gain more insight into what businesses
are required to report and the progress that the accounting field ... Show more content on
Helpwriting.net ...
The objective of financial statements 2. Qualitative characteristics of financial statements 3. The
elements of financial statements 4. Recognition of the elements of financial statements 5.
Measurement of the elements of financial statements 6. Concepts of capital and capital maintenance
(Schroeder etal, 2011) The standards mentioned above are the standards that appear to have the most
commonality which would seem that there would be fewer obstacles. However; a prevalent variance
is the amount of detail which is contained within the two frameworks. While the convergence of the
two boards will be difficult, recognizing the commonalities between the frameworks is the first step
in making sure the convergence goes through smoothly. Not only is it important to merge the two
different sets of standards, but it is also important that the two boards work together to build onto
the current set and establish additional standards that organizations are required to follow. The
Master of Science in Accountancy (MSA) program prepares students for a professional life within
the accounting vocation by introducing students to the standards set by the FASB and the IASB.
"The (MSA) provides the breadth of knowledge for the professional accountant. Students master the
theory and principles that frame a wide range of

International Accounting Standards Board And Financial...
It all began on October 2002 where the International Accounting Standards Board and Financial
Accounting Board signed a memorandum of understanding that has come to be known as the
"Norwalk Agreement". Here the two boards met and decided to make their standards fully
compatible and put it into practice and once they conquer their goal, they have to make sure it is
maintained. But before I divulge into details regarding the future and presently achieved goals of the
convergence, I would like to throw some light on the history and background of the two boards
involved. International Accounting Standards were formed between 1973 and 2001 by the board of
the International Accounting Standards Committee (IASC). On 1 April 2001, the new ... Show more
After the year 2001 almost 120 countries have adopted the use of IFRS. On the other hand The
United States Generally Accepted Accounting Principles have been set by the American Institute of
Certified Public Accountants (AICPA) which is subject to Securities and Exchange Commission
regulations. The AICPA first created the Committee on Accounting Procedure in 1939, and replaced
that with the Accounting Principles Board in 1959. In 1973, the Accounting Principles Board was
replaced by the Financial Accounting Standards Board (FASB) under the supervision of the
Financial Accounting Foundation with the Financial Accounting Standards advisory council serving
to advise and provide input on the accounting standards. Organizations such as United States
Security and Exchange Commission, Financial Accounting Standard Board, and Governmental
Accounting Standards Board influence the GAAP in the United States.
Coming back to convergence, for the past several years the IASB and IASC before 2001, have been
working to develop high quality, easy to understand, and practicable International Financial
Reporting Standards to serve investors & creditors, around the world in globalized capital markets
to make investment decisions. When IASB took over from the IASC in 2001, few countries back
then had accepted and practiced International Accounting Standards. Everything changed with the

The Conceptual Framework Of Financial Statements
1.0 Introduction:
As Miracel Griff (2014) stated accounting is a science that is involved in the reading, monitoring
and assessment of the financial affairs of a business at any time. In accounting procedures one
cannot make a rational choice without some framework of principle (Macve, 1981).
The Conceptual framework was introduced in 1989 by the International Accounting standard board
also known as IASB. A conceptual framework comprises of a set of basic principles that give
general support and can assist with detailed decisions by increasing the like hood of consistency and
reducing the cost of analysis. In financial reporting, a conceptual framework sets out the concepts
that underlie the preparation and presentation of financial ... Show more content on Helpwriting.net
...
The consistency and comparability that is present due to the standardization of the principles
generates a continues development and enhancement of the framework in order to be consistent and
therefore is considered positive and therefore recommended (Potter 2005). As nothing can be
complete without continuous improvement as time changes and therefore regulations and principles
need to be revised continually. Also Macve (1997) adds by stating that the framework will guide
standard–setters to build accounting rules based on a solid set of fundamental principles.
Without A conceptual framework, the standard setters often acceded to external pressure from
interest groups leading to haphazard and vague rules and guidelines. With a defined framework,
however, standard–setters are made more accountable to users. Making users clearly aware and able
to recognize parting from the principles set out (ASB 1999).
Therefore conceptual framework promotes fundamental principles which can assist national
standard–setting bodies in developing national standards.
By using the framework It gives a guide to prepares of financial statements of how information

Essay on Financial Accounting Textbook Solution
CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION
TABLE | | | | |Topics |Questions |Cases | |1. |Subject matter of accounting. |1 |1 | |2. |Environment of
accounting. |2, 3, 4 |3, 4 | |3. |Role of principles, objectives, standards, and accounting |5, 6, 7 ...
|Complex |20–25 | |CA1–13 | |Securities and Exchange Commission. |Moderate |30–40 | |CA1–14 |
|Rule making process. |Moderate |25–35 | |CA1–15 | |Financial reporting pressures. |Moderate |25–
35 | |CA1–16 | |Economic consequences. |Moderate |25–35 | |CA1–17 | |GAAP and economic
consequences. |Moderate |25–35 | SOLUTIONS TO CODIFICATION EXERCISES CE1–1 There is
no answer to this requirement as it asks the student to register to use the Codification. CE1–2 (a)
The Codification Overview module illustrates three items (1) the topic structure (2) different
methods of accessing and viewing content, and (3) a summary of the unique features of the
Codification Research System. (b) The Codification is intended to (1) become the single source of
U.S. accounting standards and (2) supersede all of the non–SEC documents used to

The Pros And Cons Of International Financial Reporting...
International Financial Reporting Standards (IFRS), represent the norms that were introduced by
IASB. Being an independent organization that was not operational to earn profits, IASB, also known
as, International Accounting Standards Board, incepted IFRS to facilitate public companies around
the globe. IFRS presented a framework that served as a guide for these corporations directing them
on preparation and disclosure of the financial statements. The International Financial Reporting
Standards offered general guidance to the seekers concerning the financial statements. The standards
never strived to set industry specific reporting principles or regulations.
The U.S. GAAP represents the set of accounting principles that strictly abide by the laws and
regulations. The U.S. GAAP, also known as, Generally Accepted Accounting Principles, encompass
the legal norms, complex mechanisms and through details for corporate accounting. The U.S. GAAP
standards are often perceived as building blocks for the decisions taken by FASB, also known as,
Financial Accounting Standards Board. GAAP served as a legal and regulatory standard for the
companies operational and listed on the stock exchanges in the United States.
In comparison with IFRS, the accounting standards proposed by the U.S. GAAP are a bit inflexible.
My agenda is to find out the difference and the positive, negative effect as professional in
international market. (Figure 1.1)
The current data indicate there are 195 free

Merger of the FASB and IASB
Dr. Steven Hall
Accounting 5312
29 June 2014
The Merger of the Financial Accounting Standards Board and the International Accounting
Standards Board
The proliferation and evolution of international trading and commerce have not only opened the
gateway to international markets for many of the world's emerging economies, but they have also
fostered an unprecedented growth in the number of multinational corporations. Spurred by trade
agreements such as the North American Free Trade Agreement (NAFTA) and the World Trade
Organization (WTO), the rapid expansion of global commerce has revealed many inherent obstacles
and risks within the international financial structure. Disparate political, ethical, economic, and legal
policies have ... Show more content on Helpwriting.net ...
The IASB and the FASB have both established frameworks for the reporting of financial
information, however, despite their apparent similarities several key differences exist between their
structures. For example, U.S. GAAP has been traditionally defined as being a more rules–based
standard, which has established strict guidelines and contingencies for reporting financial
information. Given its history and the recent tumultuous financial environment, particularly the
2008 financial crisis, U.S. GAAP has become a very robust and strictly enforced set of standards.
This has given rise to concerns that some preparers of financial statements may commit accounting
fraud by circumventing or manipulating the rules of U.S. GAAP. Supporters of IFRS argue that "the
more detailed the guidance, the greater the opportunity to find the loopholes in the guidance"
(Hillman, Heaston, and Dodd 5). Despite these concerns, however, U.S. GAAP continues to be the
preferred standard of most accounting professionals. Conversely, IFRS is a principles–based
standard. The principles–based approach of IFRS grants management the discretion to use different
accounting methods when preparing financial data. While this practice is praised for its focus on fair
values and the freedoms it provides managers, it is often criticized for being far too subjective and
inviting "a human element that could increase the risk of financial

Similarities Between Financial Accounting And Managerial...
1. Differentiate broadly between financial accounting and managerial accounting.
Financial accounting is the process of recording, summarizing and reporting business transactions
over a period of time in order to prepare company financial reports for use by both internal and
external parties such as investors and creditors. On the other hand, managerial accounting is the
process of identifying, measuring, analyzing, and communicating financial information needed by
management in order to plan, control, and evaluate a company's operations.
2. Differentiate between "financial statements" and "financial reporting."
Financial statements are the principal means through which a company communicates its financial
information to those outside it. They ... Show more content on Helpwriting.net ...
These documents are reported usually for authoritative pronouncement, regulatory rule, or custom.
3. How does accounting help the capital allocation process?
Accounting provides relevant and reliable financial information of a company, which in turn can
help investors and creditors with the capital allocation process and attract investment capital.
4. What is the objective of financial reporting?
The objective of financial reporting is to provide financial information about the reporting entity that
is useful to present and potential equity investors, lenders, and other creditors in decisions about
providing resources to the entity.
5. Briefly explain the meaning of decision–usefulness in the context of financial reporting.
Financial reporting provides financial information that is useful for investors in making decisions in
terms of assessing the company's ability to generate net cash inflows and management's ability to
protect and enhance the capital providers' investments, which is also known as decision–usefulness.
6. Of what value is a common set of standards in financial accounting and

Introduction. Keeping The Day-To-Day Business Accounting
Introduction
Keeping the day–to–day business accounting is not just a necessity but rather, and above all, an
obligation. Financial accounting seeks to find answers to recurring questions in a business such as,
how much was sold last month, how many people have used the services, and how much to produce
to meet the needs of the customers. The financial accounting is a method that helps better organize
and manage any business. Accounting is the science that serves to organize all the numeric records
of a particular company. Thus, it serves to record all movements of values and quantities. Having
said that, it is not difficult to understand that financial accounting is, above all, a tool for managing a
business, regardless of its size.
This ... Show more content on Helpwriting.net ...
International Accounting Standards Board & International Financial Reporting Standards
A brief summary of recent global accounting is needed to understand what the international area
standards are and how they work. In 1973 the International Accounting Standard Board (IASB) was
created, an independent entity of the private sector. The IASB was created, among other functions,
for the preparation and issuance of International Financial Reporting Standards (IFRS). The entity
already existed previously, under a different name, but it was until after 1973 that it actually had the
strength to organise a movement of change in the accounting aspects at world level. The
headquarters of the IASB is located in London, and has the experience of more than 140 different
professional accounting entities. According to the website http://www.ifrs.org/About–
us/Documents/Who–We–Are–English.pdf the IFRS foundation and the IASB were established in
2001.
Overview of the structure of the International Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS)
The international financial accounting standards is a non for profit private sector. Their aim is to
serve the public interests. With the growing globalisation of business and finance, it has stimulated a
standardisation of accounting standards among countries. This measure aims to

Us Accounting Standards vs. International Accounting...
United States Accounting Standards vs International Accounting Standards
June 21, 2009
Introduction
This research project will inform the reader of the difference between the United States accounting
standards and International accounting standards. The United States uses the Financial Accounting
Standards Board (FASB) to issue financial reporting procedures. The International Financial
Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB).
There are proposals for the United States to adopt the International standards. Financial reporting
procedures are debated about the United States using the Generally Accepted Accounting
Procedures (GAAP) or following the global procedures. This ... Show more content on
Helpwriting.net ...
David Bogoslaw (2008) talks about the convergence in further detail, "The uproar over fair value
accounting practices, which some critics have blamed for the depths of the global financial crisis,
threatens to sink a long–sought move by countries around the world toward a single set of
international financial reporting standards (IFRS). The U.S. Financial Accounting Standards Board
(FASB) has been working with London's International Accounting Standards Board (IASB) since
2002 toward what accounting professionals call convergence. The Securities & Exchange
Commission (SEC) is expected to announce its road map for conversion sometime this month,
which will probably include early adoption in 2010 for about 110 of the largest U.S. companies with
business operations throughout the world. The key difference between U.S. Generally Accepted
Accounting Principles (GAAP) and IFRS is that U.S. standards are based on explicit rules while the
international standards' reliance on principles gives companies more room to use their judgment in
deciding how to recognize revenue and other key metrics. Adoption of IFRS would also probably
trigger a big tax hike for U.S. companies, which would no longer be able to use the last–in–first–out
[LIFO] inventory accounting method, which doesn't exist under the international standards. The
LIFO method assumes that goods purchased most recently are sold first and that the

The Financial Accounting Standards Board (FASB)
In 1973, the Financial Accounting Standards Board (FASB) was created and their mission is "to
establish and improve standards of financial accounting and reporting for the guidance and
education of the public, including issuers, auditors, and users of financial information." (FASB.org,
2009a). The FASB is a private, not–for–profit organization whose primary purpose is to develop
generally accepted accounting principles (GAAP) within the United States. The Securities and
Exchange Commission (SEC) designated the FASB as the organization responsible for setting
accounting standards for public companies in the U.S. Therefore, the FASB plays a vital and
important role in protecting the financial well being and the overall stability of our ... Show more
generally accepted accounting standards for private–sector entities, including businesses and not–
for–profit organizations. A recognized expert in forensic accounting, Mr. Siegel has 17 years of
experience in diverse and global industries that include technology, media, telecommunications,
healthcare, retail, and insurance. Prior to his appointment to the FASB, he led the Accounting
Research and Analysis team at the RiskMetrics Group in Rockville, Maryland (FASB.org, 2009f).
Lawrence W. Smith, 2012 – Lawrence W. Smith was appointed to the Financial Accounting
Standards Board (FASB) for a five–year term beginning on July 1, 2007. As part of the five–
member Board he is responsible for advancing the Board's mission to establish and improve
financial accounting and reporting standards to increase transparency for users of financial reports
and increasing investor confidence in the capital markets (FASB.org, 2009g). The Financial
Accounting Standards Board goes through an elaborate information gathering process before issuing
their standards. Firstly, an issue is identified and placed on the Board 's agenda by the Emerging
Issues Task Force. Secondly, a task force of knowledgeable persons is appointed to advise the Board
on the issue. Thirdly, the Board 's technical staff investigates the issue. Fourthly, a discussion
memorandum on the issue is then written and distributed to interested parties. Fifthly, the

Accounting Standards Boards Paper 4
University of Phoenix
ACC 541–Accounting theory and Research
Professor: Cecil B. Lucy
Lien Bach
October 26, 2010
Introduction
Accounting was created thousand years ago. Many companies use accounting system to record,
maintain and report, and analyze business financial transactions. Because managers and investors
make their business decisions based on Financial Statement, information obtained from Financial
Statement must be concise and reliable. Budgets and performance reports provide decision support,
planning and control business operations; therefore, Financial Statements must be accurately to
represent a true and fair view of companies. To evaluate results of information from Financial ...
According to Geoffrey Whittington (2008), the standard setters could not achieve a solution to the
inflation accounting problem that users and preparers of accounts could be accepted. Whittington
also argued that the frameworks of both the IASB and the FASB gave emphasis to the usefulness of
decisions to investors when the focus was on general financial reports (Whittington, 2008). A recent
report shows that the International Financial Reporting Standards (IFRS) has called to replace the
Generally Accepted Accounting Principles (GAAP) in the United States by 2014. This change will
have a big impact on the United States public companies through the way they represent financial
reports (Hail, Leuz, & Wysocki, 2009). The controversy between the United States GAAP and the
IFRS are the fair value and the market value (Hail, Leuz, & Wysocki, 2009). If things persist, the
Securities and Exchange Commission (SEC) and the FASB may come against the IASB. The SEC
stated briefly that there are to be improvements about how the IASB be funded and governed. The
board was also criticized for being inadequate. Dr. Yvonne Hinson stated that the two boards had a
meeting in 2002 and came to an agreement known as the "Norwalk Agreement" that was also called
a memorandum of understanding. The memorandum stated that the IASB and the FASB would work
toward a common goal (Hinson, 2009). Through a convergence, the United States could adopt the
IFRS; however, arguments pro and con this

Ifrs and Gaap Convergence
Cruz 1
Week 8 Assignment 1 IFRS and GAAP Convergence Janet Rivera Cruz Prof. Basil Jackson
Accounting 304 December 2, 2012
Cruz 2
The purpose of this paper is to describe what accounting convergence means and assess the
likelihood of the convergence being completed and implemented in the next five (5) years. IFRS is
the principle based set of standards that establish standards and dictate specific treatments. IFRS has
become a global standard for companies when preparing financial statements. IFRS consist of
multiple reports stated on the Wikipedia website. The two reports that will be discussed in the paper
are IFRS and GAAP. GAAP is an Accounting Standard that provides guidance for financial ... Show
more content on Helpwriting.net ...
There is no universal GAAP standard and the specific vary from one geographic location or industry
to another. In the United States, the Securities and Exchange Commission (SEC) mandates that
financial reports adhere to GAAP requirements. The financial accounting standards Board (FASB)
stipulates GAAP overall and the Governmental accounting standards Board (GAAP) stipulates
GAAP for state and local government. Publicly traded companies must comply with both SEC and
GAAP requirements. In recent years it also has had the chance to look at the United States Generally
Accepted Accounting Principles (GAAP) and modify the rules to enhance clarity and consistency,
intentionally setting itself apart from U.S. GAAP. The convergence of these two accounting
frameworks is a must for both foreign and domestic businesses. The International Financial
Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan,
Canada, and other world economic leaders. Companies need an accurate and reliable financial
accounting systems not matter if globally or in the United
Cruz 5
States. Companies should report income, liability, equity, and assets. Many people (stockholders,
investors, etc.) who have a stake in the company want to know this information before providing a
service. In this paper, International Financial Reporting Standards (IFRS) and the Generally
Accepted Accounting Principles (GAAP) will be compared for

Difference Between The Convergence Of Gaap With IFRS
The Convergence of U.S. GAAP with IFRS: A Comparative Analysis of Principles–based and
Rules–based Accounting Standards
Dr. Oris Guillaume 1 and Dr. Denel Pierre 2
(Shorter University1, USA ; Argosy University2, USA)
Abstract
The Financial Accounting Standard Board (FASB) and the International Accounting Standard Board
(IASB) have been working jointly toward the convergence of the U.S. generally accepted
accounting principles (GAAP) and the international financial reporting standards (IFRS). However,
several arguments still exist as to whether or not U.S. companies should adopt or converge with
IFRS. This qualitative study identified the differences noted between rules–based and principles–
based accounting, and discussed the impact of these accounting standards on financial reporting.
Additionally, several resources were analyzed to understand the path to convergence and the future
state of IFRS. The examination of information regarding the transition towards one single set of
accounting standards led to the ... Show more content on Helpwriting.net ...
64). Research also indicated that although International Financial Reporting Standards (IFRS) are
used as the method of financial reporting by over 15,000 companies outside of the United States, the
debate over whether the public companies based within the United States should adopt or converge
with IFRS remains. Callaghan and Treacy (2007) agreed that significant strides have been made
towards understanding the differences between U.S. GAAP and IFRS but, there seems to be
hesitation within U.S. public companies to migrate towards fully adopting a principles–based
method of accounting. The researchers will use an exploratory qualitative research method that
compares rules–based and principles–based accounting

International Financial Reporting Standards And The...
REVENUE ACCOUNTING
ASSIGNMENT 2 – BUSINESS REPORT
Name : Jea Sun Lee
Student Number : N9558195
Word Count : 1000 words
Table of Contents
EXECUTIVE SUMMARY 5
1.0 Introduction 6
2.0. Research and Evaluation 7–8
3.0 Future Implications of adopting AASB 15 for Australian companies 9
4.0 Conclusion 10
Reference List 11–12
EXECUTIVE SUMMARY
The International Financial Reporting Standards (IFRS) Foundation and the International
Accounting Standards Board (IASB) are a global language for business affairs that was established
in 2001 in order to develop a single set high quality and globally accepted reporting standards.
("IFRS – Organisation history", 2016). The point of the IFRS was main stability and transparency in
the ... Show more content on Helpwriting.net ...
1.0 Introduction
There are many different types of accounting standards and principles in the business world. It
would be difficult for financial markets to operate and compare reports with these different various
standards. Therefore, the International Accounting Stands Board have developed a new way of
reporting financial information. The International Financial Reporting Standards (IFRS) foundation
and the International Accounting Standards Board (IASB) were established in 2001 in order to
develop a set of high quality and acceptable financial accounting standards. ("IFRS – Organisation
history", 2016). The aim of this report is to firstly summarise the significant changes in the
Australian Accounting Standards Board (AASB 15) and how they address perceived deficiencies in
the current standards. Then, it will highlight the future implications of adopting the AASB 15 for
Australian companies.

2.0. Research and Evaluation
International Financial Reporting Standards (IFRS) is a set of principle–based accounting standards
that states how certain transactions should be reported in financial statements. ("International
Financial Reporting Standards (IFRS) Definition | Investopedia", 2005). The IFRS harmonized
accounting across the European Union (EU) and standards that were issued by the International
Accounting

International Financial Reporting Standards Board
With the number of countries that have switched to the International Financial Reporting Standards
(IFRS) for their financial reporting, as well as the continued efforts made between the IFRS and US
Generally Accepted Accounting Principles (US GAAP), it is evident that international convergence
is an overall appealing idea for global reporting. With that said, US GAAP has worked with IFRS to
create a universal standard; and while progress has been made to diminish variances between the
standards, there are still large, if not unattainable, efforts ahead of us. The hype over a proposed
uniform set of global accounting standards appears to be stunted by the lost efforts in the
convergence project between the US GAAP and IFRS. As the Financial Accounting Standards
Board (FASB) moves forward with its standards setting, there must be a reevaluation of the goal for
reporting standards and efforts with the International Accounting Standards Board (IASB).
Opinions regarding the optimal direction of the standard boards vary amongst regulators,
practitioners, and academics. Many will argue to support continuing efforts for a uniform set of
global accounting standards and believe this will drive more efficient international business. Those
who are in favor of a global standard consider it to be of global best interest, and that the standard is
worth pursuing for the long–term benefit considering the increasing prevalence of cross–border
transactions. Recent global effects of

Relationship Between Iasb and Fasb
Relationship Between IASB and FASB
In 1973, the private sector International Accounting Standards Board (IASB) was formed. The IASB
is a natural extension of a global market that has been evolving over the last three decades. The
IASB formulates and publishes accounting standards to be observed when presenting financial
statements and promote their global acceptance. As an overarching mission, the IASB works to
improve and harmonize accounting standards, regulations, and procedures as it relates to financial
statements. IASB standards provide a reference model and set of examples for financial reporting in
developing countries. The IASB has no authority with the Financial Accounting Standards Board
(FASB) or the Securities and ... Show more content on Helpwriting.net ...
The "Academic Catalog" (2012) website states University of Phoenix, Master of Science in
Accountancy provides the breadth of knowledge required for a professional accountant. One of the
core principles of the program is to help students master relevant accounting theory and principles
relevant in a wide range of real–world issues and problems encountered in the accounting
profession. The professional life of an accountant may or may not include the pursuit of the
Certified Public Accountant (CPA) examination. Other options in the field include accounting,
budgeting, and auditing. The MSA program addresses the goals of the AICPA Vision Project for
leadership, vision, professional values, communications, technology skills, and critical thinking.
Although not stated by the university, I believe the foundational skills listed above are key to long–
term success for anyone in the accounting profession independent of their technical knowledge of
financial accounting standards ("Academic Catalog", 2012). According to "Dean 's Letter" (2012), "
We designed the Master of Science in Accounting (MSA) program to meet the expectations of the
National Association of State Boards of Accountancy (NASBA) proposed education model. Each
state may set its own requirements that you must meet if you plan to take the Certified Public

Explaining Basic Accounting Concepts and Business Structures
Explaining Basic Accounting Concepts and Business Structures University of Phoenix 11/20/2010
Accounting 537
Explaining Basic Accounting Concepts and Business Structures There are many important aspects
of accounting. The generally accepted accounting principles are accounting rules set out for
companies to follow to ensure all companies are on the same page business wise. Qualities of
accounting are important in the decision making process of accounting. Accrual and cash bias
methods are different ways to count revenue and will be discussed. The final area of review is the
different types of business structures. Generally Accepted Accounting Principles. Generally
accepted ... Show more content on Helpwriting.net ...
To ensure information is reliable verifiability must be used and is so when independent measures are
used. Faithful representation means the numbers and descriptions match the true data. Neutrality is
the unbiased information and that the information does not favor one area or section of information
over another. The secondary qualities include comparability and consistency. Comparability is the
looking for similar or equivalent. Consistency is used to make sure the use of similar events and data
from period to period. Consistency is also used to ensure the company uses the same method
throughout the process. Accrual Based Vs. Cash Basis of Accounting. Accrual–basis accounting is
when the transactions are recorded in the periods in which the event occurs (Kimmel, 2007). The
company records the transaction on items when they are earned rather than when they are received.
Cash–basis accounting is just the opposite and the company records revenue only when the cash is
received. The cash basis method is not allowed under the generally accepted accounting principles
because it is important that all companies are on the same system. Business Structures The three
major types of business structures include; sole proprietorship, partnership, and corporation. Sole
proprietorships are simple to establish and owner controlled and includes many tax

International Financial Accounting Standards Board
Introduction
With the number of countries that have switched to the International Financial Reporting Standards
(IFRS) for their financial reporting, as well as the continued efforts made between the IFRS and US
Generally Accepted Accounting Principles (US GAAP), it is evident that international convergence
is an overall appealing idea for global reporting. With that said, for decades now US GAAP has
worked with IFRS to create a universal standard; and while progress has been made to diminish
variances between the standards, there are still large, if not unattainable efforts ahead of us. The
hype over a proposed uniform set of global accounting standards appears to be stunted by the lost
efforts in the convergence project between the US GAAP and IFRS. As the Financial Accounting
Standards Board (FASB) moves forward with its standards setting, there must be a reevaluation of
the goal for reporting standards and efforts with the International Accounting Standards Board
(IASB).
Opinions regarding the optimal direction for the standards boards vary amongst regulators,
practitioners, and academics. Many will argue in support to continue efforts for a uniform set of
global accounting standards and believe this will drive more efficient international business. Those
in favor of a global standard consider it to be in global best interest, and that the standard is worth
pursuing for the long–term benefit considering the increasing prevalence of cross–border
transactions. I agree

Ethics Standards And The Field Of Accounting
Professional ethics are an absolute necessity in the field of accounting. Businesses rely on
accountants to accurately report their financial information and give sound advise and consultation
in regards to their business. There are standards and rules set in place to ensure that ethics and
information is reported accurately. Laws and repercussions are created place to deter unethical and
illegal accounting practices, although it still occurs in the business world on many levels. The field
of accounting has a code of ethics for very important reasons. Investors and creditors need assurance
that the financials of the company they are investing in are accurate. If the financials of a company
are not created accurately or if the information is falsified and inaccurate, investors and creditors
have the potential to lose lots of money. Ethics standards and controls have increased in more recent
years due to a number of scandals between large corporations. Enron is one of the most known
examples, as many investors lost enormous amounts of money and life savings due to embezzlement
and falsifications from the company and the accountants handling the financials. Accountants in
each state must register with the state boards in order to legally practice in that state. These boards
relay ethical standards that certified accountants are expected to adhere. An accountant's license can
be suspended if the codes of ethics are violated. One of the main controls set in place to

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