Accounting Standards Boards Paper

1401 Words Apr 7th, 2009 6 Pages
Accounting Standards Boards Paper
In recent years there has been significant changes made in our understanding of the relationship between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). At present both the IASB and FASB are working on a joint venture referred to as the convergence project in hopes of eliminating a variety of differences between International Financial Reporting Standards and U.S. GAAP. Another area covered in this paper besides a brief history of the relationship between the IASB and FASB will be how the MSA program will prepare students for the accounting profession. The intent of this paper will be to address both issues first; explaining my understanding of the
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is the Financial Accounting Standards Board (FASB). The FASB is a private organization responsible for establishing a broad range of reporting standards and specific accounting rules. The FASB has made possible for investors, creditors, auditors, and others a means of using financial information that is transparent and comparable here in the U.S.
IASB and FASB Relationship
On November 18, 2002 the FASB and IASB came together at a meeting in Norwalk, Connecticut to start the wheels in motion for the purpose of establishing a new set of financial standards. The FASB and IASB are committed to create financial standards that will be accepted both domestically and internationally that are of high quality and compatible for financial reporting. At present more than a 100 countries already use the International Financial Reporting Standards. The U.S. at present has not accepted a changed in accounting procedures; therefore, this is going to be a major task for both the FASB and IASB to complete successfully this union. I do believe that the partnership between the FASB and IASB will achieve the goals of creating a common financial reporting set of standards that will be accepted by all.
The Convergence Project
The convergence project is to be divided into a short-term and long-term process. The short-term projects will consist of issues that can be dealt within a time frame of up to two years. In this time frame the hope is to reduce
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