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