Financial Accounting Standards Board The Financial Accounting Standards Board (FASB) is a not-for-profit organization that was created in 1973 by the Financial Accounting Foundation (FAF). The board was created to replace the Committee on Accounting Procedure and the Accounting Principles Board which was part of the American Institute of Certified Public Accountants. The foundation created the FASB to improve the standards of accounting and reporting for nongovernmental entities. The FAF is responsible for oversight and administration for the FASB and to protect the independence and integrity of its standards. These standards are recognized by the SEC as authoritative. The mission of the FASB is to provide useful information to investors and others who use financial reports and to also keep standards current to reflect the changes in the way business is done and changes in the economic environment. The FASB is comprised of 7 fulltime members who are appointed by the foundation and can serve a maximum of two five year terms. To ensure that these 7 members remain impartial they are required to sever all ties to corporations they have previously served. The FASB establishes and improves standards only after research, due process and careful deliberation. In 1984 the FASB form the Emerging Issues Task Force (EITF) in order to provide timely responses to emerging financial issues. This is a 15 member group that includes people from the public and private sector to also include representatives from the FASB and an observer from the SEC. As issues arise the team tries to determine a course of action to take. If a decision can be reached an EITF is issued and the FASB does not need to be involved. In 2009 FASB was…
What country has an accounting system that was developed with the government in mind? (Ch. 19 PowerPoint)
France and Sweden
What organization is responsible for formulating international accounting standards? (p. 647 Chapter Summary)
International Accounting Standards Board (IASB)
Which two accounting bodies are expected to dominate accounting practices? (p. 639)
U.S. Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB)
When a firm uses…
significantly affected accounting. Virtually every topic noted below will be explored in more detail as we proceed through the course.
This document provides an outline of key ideas in the chapter you should keep an eye out for, as well as some questions to think about (usually from the chapter). There are no assigned questions for this chapter.
Why this content is important
I think it is very helpful to have some understanding of the events that have led to current accounting standards, as it provides…
Comparison of Accounting Standards Setting and Financial Statement
between regulatory agencies.
Accounting Standards are regulated by different agencies. All companies in order to
describe or value its financial status must have at least basic knowledge of Accounting Standards
and Financial Statements. The financial statement will give us all necessary information to
recognize a company’s financial performance. Accounting main purposes are to identify,
measure and communicate.
Accounting is an information and measurement system that identifies, records, and communicates information that is relevant, reliable, and comparable
GAAP- Financial accounting practice is governed by concepts and rules by:Luca Pacioli (Italian monk double entry bookeeping)
Securities and Exchange Commission- government agency establish reporting requirements and set GAAP for companies that issue stock to the public.
The Financial Accounting Standards Board- the private group that sets both broad…
The basic idea is to come up with a global standard of accounting to make sure that businesses across the globe can communicate, on a financial level, much easier. Imagine the IASB, international accounting standards board, setting a universal standard used throughout the world instead of having a separate standard like the U.S. GAAP, generally accepted accounting practices, used here in the United States. The merging of these two accounting standards, and many others from nations around the world…
1. Accounting standard setting and regulatory bodies
a. The purpose of the US Securities and Exchange Commission is to protect investors against fraudulent practices, maintain stable and efficient markets, and facilitate capital formation by enforcing securities laws enacted by Congress. Elisse B. Walter is Chairman of the SEC. The Commissioners are Luis A. Aguilar, Troy A. Paredes, and Daniel M. Gallagher. None of them have a background in accounting nor do any of them have a CPA…
The Australian financial reporting standards are based on the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) following our implementation of international harmonisation in 2005. Australian standards are, for the most part, identical with their IFRS counterparts – with some modifications that address specific not-for-profit and jurisdictional issues. These amendments are clearly identified in each standard with the use of AUS paragraphs…
China’s Accounting Standard System with
International Convergence in Accounting Standards
Changchun University of Science and Technology, Changchun 130022, China
No. 65043 Section of PLA
With the international convergence of accounting standards becoming an irresistible trend, China’s new business
accounting standards have reached substantive convergence with International Financial Report Standards
Venture: International Accounting Standards Board and the Financial Accounting Standards Board
ACC 541 Accounting Theory & Research
June 30, 2015
The Financial Accounting Standards Board (FASB), since 1973, has remained the appointed organization for establishing financial accounting standards for the United States. The organization is recognized by the Securities and Exchange Commission as well as the AICPA. The International Accounting Standards Board, established in 2001, is…
Accounting has been around since the beginning of civilization. ¡§Accountants participated in the development of cities, trade, and the concepts of wealth and numbers.¡¨ (Giroux) The importance of accounting cannot be overemphasized. Equally important are the standards used to guild the application of accounting practice. Without principles and standards, financial reporting would not fairly present the financial position of a company. Accounting has changed and evolved vastly over time and continues…