Accounting Standards Board Essay

1130 Words 5 Pages

Accounting standard boards exist both in the United States and other countries. Our economies move to a more globalized environment a global standard or accounting methods and guidelines has become necessary. Over the past decades with the help of the Internet we have seen our economy grow from a national one to a global one. With this comes new challenges and opportunities. Companies can have potential investors in other countries as well at home. For foreign investors to look at U.S. based companies they need to have a financial standard that they can understand. For this both the U.S. and European country’s have come to the conclusion that a unified accounting standard needed to further our economies. There are
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Now this company can generate greater resources than could have been done if it were looking at investors just in the United States Potential investors can now come from any country in the world.

The United States has a governing body for how publicly traded companies disclose their financial data, Financial Accounting Standards Board (FASB), its counterpart in the international community is International Accounting Standards Board (IASB). “In 2002, the Financial Accounting Standard Board (FASB) and the International Accounting standards Board (IASB) announced their joint commitment to the development of accounting standards that could be used for both domestic and cross-boarder financial reporting” (Schroeder, Clark, & Cathey, 2011, p. 78-79). “In 2004 Financial Accounting Standard Board (FASB) and International Accounting Standards Board (IASB) announced two joint projects: one to develop and improve a common conceptual framework second to establish a common, high-quality standard for the presentation of information in financial statements. In 2005 the chief accountant of the SEC described a “road map” for arriving at a common set of high-quality global standards and announced that the SEC was examining the possibility of the removal of the need for the reconciliation requirements for non-U.S. companies that use International Financial

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