ACC Standards
Accounting Standard Board
Tracy L Duran
ACC/541
February 23, 2015
Leslie Crews
Accounting Standard Board
Introduction
Accounting was created thousand years ago. Many companies use accounting system to record, maintain and report, and analyze business financial transactions. Because managers and investors make their business decisions base on the Financial Statement, the information that obtained from the Financial Statement must be concise and reliability. Budgets and performance reports provide decision support, planning and control business operations. Therefore, Financial Statements must be accurately to represent a true and fair view of the company. To evaluate a result of the information, accounting report must be related to the accounting standard principles. Currently, there are several organizations have established to comply with the accounting principles. However, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are the most influential standard-setters in accounting report systems. This paper will provide a brief history and the relationship between the two accounting standard boards, in which IASB is equivalent to the original pronouncement of FASB. Furthermore, this paper will explain the benefit of Master of Science in Accounting (MSA) program and how it will guide students to future professional career in accounting vocation.
History of FASB The FASB is used broadly in the United States. FASB sets General Accept Accounting Principles (GAAP). It was established by the AICPA because of the recommendation the Wheat Committee in 1973. FASB has responsibility to set accounting standards for a public company. The members of the FASB are full-time employees from various organizations such as the American Accounting Association; the AICPA; the Association for Investment Management and Research; the Financial Executives Institute; the Government Finance Officers Association; the Institute of
Tracy L Duran
ACC/541
February 23, 2015
Leslie Crews
Accounting Standard Board
Introduction
Accounting was created thousand years ago. Many companies use accounting system to record, maintain and report, and analyze business financial transactions. Because managers and investors make their business decisions base on the Financial Statement, the information that obtained from the Financial Statement must be concise and reliability. Budgets and performance reports provide decision support, planning and control business operations. Therefore, Financial Statements must be accurately to represent a true and fair view of the company. To evaluate a result of the information, accounting report must be related to the accounting standard principles. Currently, there are several organizations have established to comply with the accounting principles. However, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are the most influential standard-setters in accounting report systems. This paper will provide a brief history and the relationship between the two accounting standard boards, in which IASB is equivalent to the original pronouncement of FASB. Furthermore, this paper will explain the benefit of Master of Science in Accounting (MSA) program and how it will guide students to future professional career in accounting vocation.
History of FASB The FASB is used broadly in the United States. FASB sets General Accept Accounting Principles (GAAP). It was established by the AICPA because of the recommendation the Wheat Committee in 1973. FASB has responsibility to set accounting standards for a public company. The members of the FASB are full-time employees from various organizations such as the American Accounting Association; the AICPA; the Association for Investment Management and Research; the Financial Executives Institute; the Government Finance Officers Association; the Institute of
References: Barth, M. (2006). Research, Standard Setting, and Global Financial Reporting. Foundations and Trends in Accounting, 1(2), 71-165. Retrieved from EconLit with Full Text database. Clay, M. (2007). IASB and FASB Working Together to Converge Accounting Standards. Proceedings of the Northeast Business & Economics Association, 268-272. Retrieved from Business Source Complete database. Financial Accounting Standards Board (FASB). 2002a. Proposal: Principles-Based Approach to US Standard Setting. File Reference No. 1125-001. Norwalk, CT: FASB. Last retrieved on May 8, 2010 at www.fasb.org/proposals/principles. Hail, Luzi, Leuz, Christian and Wysocki, Peter D., Global Accounting Convergence and the Potential Adoption of IFRS by the United States: An Analysis of Economic and Policy Factors (February 25, 2009). Retrieved from Ebscohost database. Whittington, G. (2008). Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6281.2008.00255.x/full