Accounting Standard From The Financial Information Reporting Perspective

The information in this report regarding the accounting standards for private companies is as stated in the proposal stage. The three options discussed are options being considered and the Accounting Standards Board (AcSB) has issued an

In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).

The Financial Accounting Standards Board goes through an elaborate information gathering process before issuing their standards. Firstly, an issue is identified and placed on the Board 's agenda by the Emerging Issues Task Force. Secondly, a task force of knowledgeable persons is appointed to advise the Board on the issue. Thirdly, the Board 's technical staff investigates the issue. Fourthly, a discussion memorandum on the issue is then written and distributed to interested parties. Fifthly, the

The purpose of creating FASB is to establish standards of financial accounting that control the establishment of financial reports by nongovernmental organizations. This instance is identified as the number one authority by the SEC and the American Institute of Certified Public.FASB Accounting Standards Codification serves as a reference guide of authoritative standards for accounting and reporting, to be applied by nongovernmental organizations. Some examples are; ASC 830-230-55-1 that can identify as Statement of Cash Flows for Manufacturing Organization with Foreign Operations, ASC 926-330-35-1 can be justified as Products Held for Sale, ASC 954-440-25-2 identified as Continuing Care Retirement Community, ASC 505-20-50–1 means Equity, Stock Dividends and Stock Split and Disclosure, ASC 710-10-05-6 describe as Employees Compensations..

As stated earlier, the IASB arose from specific needs of the accounting industry and the public. As international trade has increased, the need for transnational accounting information has increased as well. This sparked the demand for development of international accounting standards to make financial data between countries more comparable. In 1973, the International Accounting Standards Committee (IASC) was formed to develop these international standards. The standards issued by the IASC, prior to 2001, were called International Accounting Standards (IASs). In 2001, the IASC made the International Accounting Standards Board (IASB) the official international standard-setting body. The standards issued by the IASB are called International Financial Reporting Standards (IFRSs) (Schroeder, Clark, & Cathey, 2011, p. 82-87).

The Codification’s goal is to clarify the company of thousands of U.S. authoritative accounting announcements published by diverse standard-setters. Therefore, to accomplish this objective, the FASB sponsored a project to incorporate and typically adapt all related accounting publication announced by the standard-setters of the U.S. in conjunction with those of the FASB, the Emerging Issues Task Force (EITF) and the American Institute of Certified Public Accountants

This paper will analyze these views as they apply to the discloser of segment information for public entities as required by topic 280 of the FASB accounting standards codification, and discussed in Statement of Financial Standards No. 131 (“SFAS 131). The paper is structured as follows: Section II provides an overview of the objective and general purpose of financial reporting and the qualitative characteristics off useful financial information as determined by the Financial Accounting Standards Board (“FASB”), section III introduces the concept of segment reporting and outlines the requirements for disclosures of segment information for public companies, section IV evaluates the relevance of

On August 18, 2016, Norwalk, CT, —The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) meant to simplify and improve the way a not-for-profit organization category its net assets, as well as the information it presents in financial statements and notes about its liquidity, financial performance, and cash flows (FASB, 2016).

For as long as human interactions have allowed the exchange of value between goods or services, accountancy has been the language of which business transactions are speaking (Salem, 2013). Accounting keeps track of and explains how money is used by non-profit organizations, for-profit businesses, governments and other individuals. Sounds simple enough right? Well, in all reality it is not that simple. Nowadays, there are many different forms of accounting let alone different set of standards that certain, and sometimes all, organizations must follow. Today there are two main standard setters in the United States that is responsible for providing up to date standards for its corresponding organizations. Although these two standards are very similar in nature, they are also very different when it comes to their own individual reporting requirements. Throughout the rest of this paper I will not only compare and contrast the differences between the Governmental Accounting Standard Board (GASB) and the Financial Accounting Standard Board (FASB), but also how they differ when it comes to their reporting requirements.

These tests will define the different reportable operating segments that need to be reported by the organization in their financial report. The standards under AASB 8, even provides an approach, where segments that were not reportable and did not qualify the above tests to be reportable separately. This approach is referred to as the management approach, even any such information analyzed by the chief operating officer

The GASB released statement 34 in June 1999. At the time; it was designated as the latest in the accounting standards that GASB had issued. While the requirements within the statement still contains much of the older

TIER 1:- Tier 1 reporting requirements are applicable for the financial statements of following entities:-

The IFRS 8 is an international accounting standard, which requires entity, adopt management method when report operating segments’ financial performance to made the segmental information closer to the internal report of the entity. The IASB has substituted IFRS 8 for IAS 14 and combined the segment report request with the SFAS 131 Disclosure about Segments of an Enterprise and Related information.

IFRS 8 (‘the standard’) aligns the identification and reporting of operating segments with internal management reporting. Segment reporting under IFRS 8 should highlight the information and measures that management believes are important and are used to make key decisions. It should also provide a better link between the financial statements and the information reported in management commentaries such as the Operating and Financial Review or Management Discussion and Analysis. The standard converges IFRS with US Accounting Standard SFAS 131 ‘Disclosure about Segments of an Enterprise and Related Information’. This publication explains the key requirements of the standard and some practical issues for entities to consider when it is applied for the first time.

International Financial Reporting Standard (IFRS 8) ‘Operating Segments’ is the first Standard of the International Accounting Standards Board (IASB) to be subject to a post-implementation review (PIR). IFRS 8 allows investors and other users of financial statements to see the company’s operations through the eyes of management (‘the management-perspective approach’) would enable investors to understand the risks that management face each day and to assess how well those risks are managed.