Essay about Accounting Theory and Research
University of Phoenix
Accounting Theory and Research
Jun 13, 2009
Accounting Standards Board
To address the increasing challenges of legislating those governs our society today, “countries all over the world have begun to outsource rulemaking to bodies consisting of people familiar with the subject. For that reason, policymakers rely on private entities to establish financial accounting and reporting standards” (Donald Kieso, 2003, Intermediate Accounting). The two most influential standard-setters are the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
FASB & IASB are currently working jointly to establish a single set of universal accounting …show more content…
FASB issue three types of pronouncements: Standards, Interpretations and Staff Positions, Financial Accounting Concepts and Emerging Issues Task Force Statements.
The IASB (International Accounting Standards Board) is an independent standard-setting board, appointed and overseen by a geographically and professionally diverse group of trustee who appoint the 14 Board members from nine countries .The IASB replaced the International Standards Committee (IASC) in 2001.The board members have different backgrounds, experience and technical skills of relevant international business. Their mission is to “produce a set of high quality, understandable global accounting standards and to encourage convergence on these standards” (2). The IASB publishes its standards in a series of pronouncements called International Financial Reporting Standards (IFRS).Just like the GAAP states, according to IFRS standards, accounting information has to meet the two primary qualities of relevance and reliability and the two secondary qualities of comparability and consistency.
To achieve its goals, IASB works with national accounting standard setters around the world, one of its most important partners being the FASB.
Both FASB and IASB