Acc 541 Accounting Standards Board Paper

1125 Words Mar 3rd, 2012 5 Pages
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
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95). As part of the Norwalk Agreement, the boards agreed to a short-term project in attempt to remove differences between GAAP and IFRS. This was known as the FASB’s Short-term International Convergence Project. This project was meant to address the simpler differences, while more complex differences would be handled in the Roadmap to Convergence project. Before the strides toward convergence, the Securities and Exchange Commission (SEC) required that all non-U.S. companies that issued securities in the United States reconcile their financial statements to GAAP. In 2007, the SEC revoked this requirement and voted to accept financial statements prepared by non-U.S. companies using IFRSs. In 2008, the SEC proposed a roadmap that would allow use of IFRSs for financial statement preparation by U.S. companies starting in 2014 (Schroeder, Clark, & Cathey, 2011, p. 79-95).
Board Standards FASB GAAP is “rules-based” (Deloitte, 2007, p. 4). The original pronouncements of the FASB were the Statements of Financial Accounting Standards (SFASs), which created GAAP. These pronouncements addressed specific accounting issues and the methods by which they should be handled. Other pronouncements of the FASB were: Interpretations, Statements of Financial Accounting Concepts (SFACs), and Technical Bulletins. In 2009, these pronouncements and

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