Financial Accounting Standards Board

the international accounting standard is restricted by the environment, regulation and culture of the country. Depending on its region, every country practices its own culture which eventually build the society’s behaviour. Nobes and Parker (2012, page 29) note that: “Culture in any country contains the most basic values that an individual may hold. It affects the way that individuals would like their society to be structured and how they interact with its substructure. Accounting may be seen as…

more frequent. The language of accounting such as financial report used by international society generally, plays an important role in the process of economic globalization. At the same time the people involved are having a higher demand for it. Bushman (2003) argues the quality of the accounting information, especially the reliability and comparability often directly determine the quality and consequences of market transactions. Also the quality of the accounting information affects the…

entities in Australia after the introduction in the International Financial Reporting Standards (IFRS). It became effective for reporting companies on or after 1 January, 2005. This introduction would completely change the way it is recognized and measured for accounting purposes as per the Australian standards. The main motive behind the introduction of this section is to identify how the non-monetary assets shall be represented in the financial statements. (Deegan 2012) Firstly, the…

Culture, gender, and demographics play a big role in the failure of convergence according to the articles I found. Gender has always had an impact on industries around the world but one industry we cannot afford to have bias or favoritism in is accounting. Businesses, investors, and citizens of the community rely heavily on the honesty and unbiased opinion of companies they give their money to. With the controversy over these two practices going on there is less and less reliability success in…

Morris March 20, 2016 Accounting 2102 International Financial Reporting Standards Say you want to buy stocks in a cell phone manufacturing company. How do you know which company to invest in? A good business plan would be to compare the financial statements for each competing company. A task as such would be nearly impossible if there were not a standard system of financial records. In 1973, with the growing amount of international trade, the International Accounting Standards Committee…

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.…

Establishing Accounting Standards, “The process of setting accounting standards can be described as democratic because like all rule-making bodies the board’s right to make rules depends ultimately on the consent of the ruled”. One of the advantages of the process is that external parties are invited to comment on exposure drafts or present testimony during roundtable discussions. The history behind SFAS No. 123 provides us with a prime example of external parties influencing Board decision in…

Imagine a world without accounting. Would businesses still be able to operate and function? How would they know if they know what Would businesses still exist. Accounting information is a fundamental part of accounting it allows businesses to know where they financially stand. Accounting is a system that was specifically constructed and developed to record data, the field of accounting has developed over the years and is a key part of keeping society in order; it is a vital tool. The objective…

need for accounting and transparency of organizations. Prior to 1994, nonprofit organizations used fund accounting to represent balanced sheets. Fund accounting offered an overall picture of the organization’s finances in a complicated fragmented way, in other words it made reporting difficult and therefore seeing a clear picture of the organizations finances became very challenging (McLaughlin, 2010). On the other hand, according to McLaughlin (2010), the Financial Accounting Standards Board…

In the year 2016, the board published two copies of the reviewed International Auditing Standards that considered the integration of the United States auditing standards. The board also completed its project on integrating the United States auditing process and the International auditing Standards and announced the availability of the revised edition handbooks (Jaruga, Fijalkowska, Jaruga-Baranowska & Frendzel 2007, p. 70) The Implication of the International Standards on the U.S Companies The…