Financial Accounting And Reporting Standards

The FASB is an agency of the federal government that has the broad powers to prescribe accounting standards to be employed by companies that fall within its jurisdiction.

The Financial Accounting Standards Board (FASB) is a non-profit association that designs and updates the generally accepted accounting principles (GAAPs). These rigorous accounting principles are used in the private sector during the preparation of mandatory financial reports that are given to shareholders, the public or government agencies.

In 1973, the Financial Accounting Standards Board (FASB) was created and their mission is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.” (FASB.org, 2009a). The FASB is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. Therefore, the FASB plays a vital and important role in protecting the financial well being and the overall stability of our

The Financial Accounting Standards Board (FASB) sets the Generally Accepted Accounting Principles in the United States. The FASB Accounting Standards codification implements a system for organizing non-governmental generally accepted

The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy

1. You must answer ALL questions in the test booklet. No separate booklet will be

FASB is largely organized 7 members as full-time job. The mission of the FASB is to establish and improve standards of financial accounting and reporting that tries to provide decision-useful information to investors and other users of financial reports in terms of nongovernmental entities. The U.S. Securities and Exchanges Commission (SEC) authorizes FASB setting accounting standards. The

The International Accounting Standards Board (IASB) began operations in 2001. It is an organization committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements. The IASB has developed procedures that bring transparency, predictability, and consistency (IASCF Press Release, December 2, 2007).

Directly or indirectly, financial reporting measurements of performance and financial position affect almost everyone. They help to determine whether a business is regarded as a failure or a success, whether its employees earn a bonus, whether they keep their jobs, what dividends investors receive, and how much tax the business pays.

“The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.”

This paper provides detailed information about the aspect or revenue recognition as compared to the US Generally Accepted Accounting Principles and International Financial Reporting Standards as the standards that are used in accounting (Ammons 45). The diverse differences that exist when either of the standards is used can be clearly noted as the paper illustrated the major variations in applications. Financial statements made using the right standards and procedure such as US GAAP and IFRS usually provides relevant, understandable, comparable and reliable financial statements that show a true and fair financial position of a company to all the users of financial statements

One purpose of financial reporting is to provide information that is useful in making business and economic decisions for internal and external users. The measurement plays a vital role in preparing a reliable and fair report cause it determines how the report shows the entity’s financial position and performance.

Accounting is the art of recording transactions in the best manner possible. Accounting Standards are the policy documents issued by recognized expert accountancy bodies relating to various aspects of measurement, treatment

IFRS rules does not exempt cash flow statements in any kind of situations; whereas according to GAAP under some circumstances exemptions of cash flow statements are limited for certain investments and entities.

What are International Accounting Standards? The International Accounting Standards or IASC are accounting standards issued by the International Accounting Standards Board or IASB and its predecessor, the International Accounting Standards Committee or IASC.