Financial Accounting Standards - 903 Words

FASB IFRS Financial Accounting Standards The Financial Accounting Standards Board (FASB) has been around since 1973 and their organization’s duty and task is to set and provide effective and reliable financial accounting standards in the United States. The Financial Accounting Standards Board is also a private sector and is a not for profit organization, also recognized as U.S. Generally Accepted Accounting Principles (GAAP). The Securities and Exchange Commission (SEC) and The American Institute of Certified Public Accountants (AICPA) recognize their standards and consider them to have authority and to be dependable. (Facts About Fasb). The Financial Accounting Standards Board’s information is heavily used by different people such as investors, lenders, auditors and many more to influence their choices about how they designate their capital. (What We Do: Fasb) It also helps the different financial markets run smoothly. International Financial Reporting Standards The International Financial Reporting Standards â€Å"are a set of accounting standards developed by the IASB that is becoming the global standard for the preparation of public company financial statements.† (AICPA). IASB started operating in 2001 and is established as an independent organization that also sets accounting standards. According to the American Institute of Certified Public Accountants, IFRS is used by roughly 120 nations all over. Main Difference between GAAP and IFRS According to PologeorgisShow MoreRelatedThe Financial Accounting Standards Board1346 Words   |  6 PagesEarnings per share is introduced by the Financial Accounting Standards Board as the functionality used to calculate an institutions’ earnings for the year-end financial statements. The institutions can be made of up a simple or complex capital structure. It must be calculated on a constant basis in order for reports to remain consistent. FASB provides a formula of â€Å"dividing income available to common stockholders by the weighted average number of common shares outstanding during the period† (FASBRead MoreAccounting: the Financial Accounting Standards Board (Fasb)1158 Words   |  5 PagesIntermediate Accounting Paper The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public s interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. It was created in 1973, replacing the Accounting Principles Board and the CommitteeRead MoreAccounting Standards And Financial Reporting Essay1508 Words   |  7 PagesSepe, and Tomassini (2007), â€Å"accrual accounting is the financial reporting model used by† most corporations; which in turn, enables â€Å"investors and creditors †¦ to make their resource allocation decision† (Financial Reporting Case, para. 1). In other words, due to organizations using the same standards for financial reporting, external parties are able to compare the financial condition between businesse s (Spiceland, et al., 2007). Although accounting standards have evolved over the decades, thereRead MoreFinancial Accounting And Reporting Standards1426 Words   |  6 Pages Financial Accounting and Reporting Standards Jeremy J Boston Saint Leo University â€Æ' Abstract Financial accounting has become more complex as our country grows. The United States has established a core financial body to ensure all financial statements are published within the prescribed guidelines so that any creditor or investor is able to read and understand the information. The FASB was created to ensure that these guidelines are followed and they are well-paid individuals so there isRead MoreThe Financial Accounting Standards Board1621 Words   |  7 PagesThe Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157: Fair Value Measurements (FAS 157) to provide guidance about how entities should determine fair value estimations for financial reporting purposes. These guidelines coincide with the conceptual framework and provide a baseline for accounting professionals to gauge the true worth of an asset. The goal of the conceptual framework to provide clear concise information across the accounting professionRead MoreThe Fina ncial Accounting Standards Board Essay937 Words   |  4 PagesThe Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working consistently with an array of organizations to converge accounting topics and provide a consistent method of reporting requirements. The â€Å"Joint Projects† address the differences in accounting topics and provide clarification of the new reporting terms. Some accounting topics are complex and require extensive procedures in finding a common ground. The converged topics impactRead MoreThe Financial Accounting Standards Board2125 Words   |  9 PagesThe Financial Accounting Standards Board (FASB) was established in 1973 in order to create and develop standards of financial accounting and reporting for the general use of the public and, in particular, users of financial information including auditors, creditors and investors. This financial information is standardized for greater clarity for the guidance and education of users (FASB org, 2009a). The primary purpose of FASB as a private and non-profit organization is to develop Generally AcceptedRead MoreThe Financial Accounting Standards Board1191 Words   |  5 PagesThe purpose of the Financial Accounting Standards Board (FASB) is to create and improve the standards of financial accounting and reporting for nongovernmental entities. It is a standard for not for profit financial reporting which provides useful information to investors and other users of financial reports. The Accounting Standards Update 2011-5 discusses the reporting and presentation of comprehensive income and its components in a full set of general purpose financial statements. The goalRead MoreThe Financial Accounting Standards Board2703 Words   |  11 PagesAlmost 10 years ago on July 13, 2006, FASB, the Financial Accounting Standards Board issued FIN 48 the Accounting for Uncertainty in Income Taxes. FIN 48 is also known as Interpretation No. 48 that became effective during December 2006 fiscal year. It explains the uncertain tax positions regarding the calculations and disclosures of reserves in the Statement No. 109 of the FASB. The purpose of the FASB Interpretation No. 109, also referred to as, FIN 48, clarifies uncertainty in income taxes recognizedRead MoreInternational Accounting Standards Board And Financial Accounting1307 Words   |  6 PagesIt all began on October 2002 where the International Accounting Standards Board and Financial Accounting Board signed a memorandum of understanding that has come to be known as the â€Å"Norwalk Agreement†. Here the two boards met and decided to make their standards fully compatible and put it in to practice and once they conquer their goal, they have to make sure it is maintained. But before I divulge into details regarding the future and presently achieved goals of the convergence, I would like to throw