Accounting Standard Boards Paper
In the business of accounting two boards stand out the first one is the International Accounting Standards Board (IASB), and the second is the Financial Accounting Standards Board (FASB). The two boards are putting together this joint adventure to have a universal standard recognized internationally by entities for reporting of financial statements. This adventure will help to ensure that reporting of financial information is consistent globally and in the United States. The adventure will also help investors, stakeholders, the public, and financial institutions to read the financials in a clearer format. This paper will provide a brief understanding of the two boards joint adventure referred to as the convergence project. After discussing the relationship between the two boards along with the equivalents of the FASB original pronouncements, the paper will explain briefly how the MSA program prepares students for a professional life within the accounting vocation and how he or she will be able to make ethical business decisions.
IASB and FASB
The IASB is an independent regulatory body based in the United Kingdom, which aims to develop a set of global accounting standards (Investopedia, 2013). The IASB has 14 board members 12 are full-time and two are part-time and was established in 2001 as the successor to the International Accounting Standards Committee (answer, 2013). The FASB established in 1973, consist of seven members (Investopedia, 2013). The FASB is an independent board consisting of accounting professionals who establish and communicate standards of financial accounting and reporting in the United States (Investopedia, 2013).
Relationship between the IASB and FASB
Both boards focus on establishing accounting and financial reporting standards. The FASB focus is on the United States, and the IASB is globally. The two often work together because businesses today are going global so both boards are trying to set goals visible to both the United States and global. The FASB also sets standards and goals for individual certified public accountants practicing in the United States. The convergence the IASB, and the FASB is a project to combine various accounting and financial reporting requirements developed by both entities into single international financial reporting standards. Before the IASB, and the FASB had different fair value measurements and disclosure requirements. Developing different requirements makes it difficult for global corporations to determine which standards they must follow. Both boards are combining their efforts into one standard concerning the fair value and disclosure requirements. This will make it easier for businesses properly to report financial statements.
The benefits of having one set of global standards makes financial reporting more transparent, makes sure companies are adhere to the proper financial reporting, and makes it easier for investors to decide to do business with the companies. The differences between IASB, and the FASB are that the FASB is a private, non-government division of the U.S. Securities and Exchange Commission. The FASB funding comes through the SEC. The IASB is a private company, which receives funding from private donors and corporations. FASB members are people who primarily work and reside in the United States. The IASB members are composed of people who work and live in many nations around the world.
The MSA program helps students to gain employment in accounting, auditing, budgeting, and managerial positions in public accounting, "private industry, management, consulting, and government, and not-for-profit organizations"(Cameron School of Business, 2013, p. 3). The program also will help students prepare for the CPA examination if he or she chooses to do the exam; they will be able to understand the exam more clearly.