Accounting Standards Boards Essay

1094 Words Jun 23rd, 2013 5 Pages
This paper is intended to explain a joint venture referred to as the convergence project, between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (FASB, 2002). This paper will also provide a brief history of the relationships between the two boards, and the equivalents between IASB and FASB. Along with an explanation of how the Master of Science in Accountancy Program helps prepare students for a professional life, within the accounting vocation.
Accounting Standards Boards Within each country, there are different types of governments who follow different sets of regulations and require different accounting standards. With the current growth of global commerce,
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International Regulatory Boards The International Accounting Standards Board (IASB) governs international standards of financial reporting around the globe. The various regulatory bodies help to maintain consistency and accuracy in reporting because companies with a global reach may find the need to produce multiple versions of their annual financial report; therefore, they must adhere to the standards of both the United States and international governing bodies (ISB, 2012). The Sarbanes-Oxley Act of 2002 focuses on corporate management, auditor responsibility, accountability, and spans across both public and privately held organizations. It helps to insure the accuracy and integrity of fiscal reporting (Soxlaw, 2006).
"The Norwalk Agreement" In October 2002, the IASB, and the FASB issued a memorandum of understanding ("The Norwalk Agreement") in which both boards committed to establish quality compatible accounting standards, which could be used for national and international financial reporting (FASB, 2002). Both of the standard boards pledge to make the current financial reporting standards compatible to each other, as soon as possible and moving forward the two boards would work together in any future programs to ensure that once accomplished, compatibility is maintained. Both boards also established a dead line of 2007, for convergence of FASB and IFRS standards (FASB, 2002).
Memorandum of

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