The Financial Accounting Standards Board Essay

1043 Words 5 Pages
Today’s global business landscape is one of constant change. The accounting industry like all others, is experiencing the effects of globalization and as the U.S. accounting industry continues to press forward with replacement of rules-based accounting standards under the U.S. Generally Accepted Principles, with principles-based accounting standards under International Financial Reporting Standards, adoption of IFRS is inevitable.
Leading the push for a single set of high-quality International accounting standards is the U.S. Securities and Exchange Commission (SEC), a government appointed body. The SEC’s call to action has prompted the shift away from U.S. GAAP toward the globalization of accounting standards through a slow and steady convergence with IFRS. Although the SEC has authority over setting and changing accounting standards in the U.S., the Financial Accounting Standards Board (FASB) which is an independent, private-sector, not-for-profit organization, appointed by the SEC, sets the financial accounting and reporting standards for public and private companies in the U.S. In partnership with the FASB, the Government Accounting Standards Board (GASB) issues accounting standards for government financial reports.
The U.S. Securities and Exchange Commission focuses primarily on monitoring and enforcement of established accounting standards in an effort to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation” (SEC,…

Related Documents