Accounting Standards Board (FASB) Regulates Accounting Practices In The United States

813 Words 4 Pages
In the United States, all for businesses reported revenues of $1.325 trillion. To record these transactions, these firms manage a large amount of data. Accountancy boards standardize the methods these companies use to record financial information. To facilitate the business flow, the boards have cooperatively created a new revenue reporting standard. The boards have also outlined the basic steps all firms should take when making the transition. Depending on the entity, the boards expect firm’s to adopt these new practice by a given date.

Managing Financial Data

United States businesses revenues reach staggering heights. These businesses, small and large, keep records and have fiduciary responsibilities and needs. Small sole proprietors may
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The board oversees and uniform accounting code called Generally Accepted Accounting Principles (GAAP). GAAP standardizes the methods American businesses use to report their financial activity. An individual board, similar to the FASB, governs each nation’s businesses; however, firms conducting business across international borders follow different guidelines. The International Accounting Standards Board (IASB) dictates the standards that businesses use to conduct commerce globally. As the world seemingly becomes one large financial market, financial boards around the world make changes to move toward uniformity. The New Revenue Recognition Standard is the latest undertaking by the FASB and IASB to standardize global …show more content…
Examine the information technology requirements required to make the change.

5. Determine the firm’s fiduciary responsibilities in regard to the change.

6. Work up a transition project outline for all steps and include a training schedule for all interested parties.

7. Present all forthcoming operational changes to the firm’ interested parties.

Previously, GAAP outlined different standards for many industries. The new standard makes reporting uniform for all but a handful of trades. The FASB and the IASB released the new standard in May 2016. The boards have set deadlines for all businesses, for profits and non-profits, to adopt these new changes. The exact dates depend on a particular business’ structure and are subject to change.

Change Deadline for Companies

There are different deadlines for public and private firms and different adoption dates for firms using GAAP and IFRS. The accountancy boards are holding companies using GAAP standards to these dates.

The boards set December 15, 2016 as the deadline for publicly traded companies to adopt the new changes. All reporting periods inclusive of that date are also required to conform to the new standard by December

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