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

Improved Essays
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
…show more content…
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

Related Documents

  • Improved Essays

    Also, the act requires all the corporations to conduct annual reports that provide the information about the company’s efforts to address the human rights risks in their supply chain. Another recent government act that regulates the corporations is the Clean Air Act, which was responsible for several rather large penalties and Costco Wholesale Corp. was no exception ("Costco Wholesale…

    • 870 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    PMI is responsible for consolidation after the merger, the organization not only can monitor the entire merger process but also can help Chairmen’s Integration Council to design the company's basic regulations and establish development goals. The PMI team studied many cases of large-scale mergers in the past, and after combining the advantages and disadvantages of decentralized and centralized management systems, a new distributed leadership method was proposed. The new management board consists of 18 members, all from two companies, including two chairmen. The 8 members of the management board comprise the CIC, which oversees the consolidation…

    • 1892 Words
    • 8 Pages
    Great Essays
  • Great Essays

    In 2008, the US Security and Exchange Commission announced its plans to force US companies to switch from the General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS). In the US, GAAP are the accounting procedures that companies are required to follow when generating the company’s financial statements. (Investopedia, n.d.) While the IFRS is the international accounting standards in which business transactions are reported in financial statements. The IFRS provides a common accounting language so companies in different countries can understand each other. (Investopedia, n.d.) The movement toward IFRS from GAAP would make fiscal corporate comparisons easier due to a universal standard and allow for…

    • 1149 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Financial reporting communicates what a company’s financial and operational condition is at any specific time. To make the reporting clear and concise, the Financial Accounting Standards Board (FASB) created the Generally Accepted Accounting Principles (GAAP) which is a set of standards that includes a set of codes that provide structure and organization. (Spiceland, Sepe, & Nelson, 2013, pg. 10) Similarly, international countries have created their own set of accounting standards. However, in the past few decades, the United States and other countries have been getting into business with each other.…

    • 732 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Strategic HR Planning

    • 828 Words
    • 4 Pages

    HR Planning Strategic HR planning is imperative to the success of any business or organization. It is crucial that the knowledge, skills, and abilities of all employees are known and any additional upgrading and education to be updated and kept current in the HR records. The following is a guideline for management and employees to consider for forecasting future manpower requirements to maintain a competitive advantage in the marketplace. Forecasting future HR requirements requires all management to work with the HR specialist to develop a plan every year for the following year based on market surveys and forecasts, keep apprised of manpower requirements on upcoming successfully bid projects, and know the manpower requirements of potential…

    • 828 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    This process again is typically initiated at the start of the program and will suffice for the project duration. Once approved the HR-Talent Management team will use the communication template for each assignment each month. The target audience is identified each month by the Bank and Brokerage departments with the support and guidance of Enterprise Compliance Training, HR- Talent Management and often HRIS to advise if the information meets that criteria that feeds into the HRIS systems. This is one of the most critical steps in the process as it relates to initiating and planning through knowledge areas quality management, human resource management, and communication management. The pre and post assignment QA is conducted to validate the target audience for each assignment.…

    • 977 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Guth V. Loft Inc. Case Study

    • 2399 Words
    • 10 Pages

    Bylaws include corporate procedures and illustrate the powers of shareholders, officers and board of directors (Moran, 1994, p.443). Since bylaws do not have to be filed by the Secretary of State, they can be easily amended and enforced as soon as approval if passed by the board of directors (Sullivan, 2016). The first step to amending bylaws would be to conduct a meeting to inform the board of directors of the purpose, specific changes and procedures concerning the amending process (Sullivan, 2016). Next, the company’s existing bylaws need to be reviewed and voting percentages must be determined. In most cases, all board of directors have the right to vote, however, voting rights vary from company to company.…

    • 2399 Words
    • 10 Pages
    Improved Essays
  • Great Essays

    Different systems can be used such as feedback forms, interviews and also can be measured through the number of transactions processed (Hanlon, 2013) Implement policies and guidelines on the product the policies and guidelines as per the Central Bank of Sri Lanka will have to be adhered at all times (Morrison, 2010) Freeze stage Implement performance appraisal systems with the new product Critical market evaluation and assessment will have to be made and feedback of the product will have to be monitored and assessed and also the marketing team of the bank will have to go in line with the promotions and offers given by other banks for DFCC Bank Plc. to compete in the market (Jeff, 2004) Drive monetary reinforcement upon introduction and implementations of the product the financial segment will also have to be looked into since the main motive of the bank is to increase the figures in the balance sheet (Kaplan and Norton, 2001) Internal and external environments will affect the process of change that is to be…

    • 2113 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    It further assists the creditors and interested investors to determine the organization’s financial position because of the list of assets and creditors outlined in the balance sheet. Due to the providence of the financial statement each year, the company is at a position to evaluate its progress on the financial operations of the business. Therefore, if the company is seeking to borrow from banks or the public, the borrowers analyze the company’s balance sheet to determine the firm’s viability to repay the loan. It is also incorporated in the statement of financial income to enable the understanding of business operations (Palepu & Healy, 2007). Therefore, the balance sheet plays a significant role in showing some vital aspects about business.…

    • 711 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    As a member of the board of directors I would have ensured that the company had several checkpoints in place to ensure the company had ethical financial dealings. 2. This would include having quarterly meetings that would consist of going over the company financial reports and balance sheet with the bank and the audit committee as well to see if everything is aligned. 3. Finally, I would have also indicated a new type of meeting with the shareholders and employees to demonstrate how the company is doing financially so that they may be educated on their stake in the company.…

    • 1535 Words
    • 7 Pages
    Great Essays