Essay about Fasb vs Iasb

1137 Words Feb 25th, 2012 5 Pages
Relationship between FASB and IASB
Carolina Camacho-Collier
ACC/541
June 6, 2011
Heber W. Howard

Abstract

This report has been made to explain the direct relationship that the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have and how crucial the unification of these two setting standards entities are in these current days, where financial transactions are expected to perform globally. In addition, it is important to have a Master of Science in accountancy in order to prepare professionals in accounting to provide reliable information for this new environment of economic and financial transactions. The Financial Accounting Standards Board (FASB), a non-governmental entity,
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Second, work generally for the improvement and harmonization of regulations, accounting standards, and procedures relating to the presentation of financial statements.” These two entities are working on the same basis but for two different groups. FASB standards are based on United Stated users. On the other hand, IASB standards are based on worldwide users. Both setting accounting standards entities are based on similar conceptual frame work and qualitative characteristics. In the table bellow a summary description of these concepts is presented.

FASB FINANACIAL CONCEPTS | IASB FINANCIAL CONCEPTS | 1.SFAC No.1 “ Objectives of Financial Reporting by Business Enterprises” | 1. “Objective of financial statements” | 2. SFAC No.2” Qualitative Characteristics of Accounting Information” | 2. “Qualitative characteristics on financial statements” | 3. SFAC No. 5” Recognition and Measurement in Financial Statements of Business Enterprises” | 3. “The elements of financial statements” | 4. SAFC No. 6” Elements of financial Statements” | 4.”Recognition of the elements of financial statements” | 5. SAFC No.7” Using Cash Flow International and Present Value in Accounting Measurements” | 5.”Measurements of the elements of the financial statements” | | 6. “Concepts of capital and capital maintenance.” |
Note. From Schroeder, Clark, and Cathey (2011), Financial Accounting Theory and Analysis,

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