History of the Relationship Between Fasb & Iasb

1633 Words Mar 13th, 2012 7 Pages
Running head: RELATIONSHIP OF IASB AND FASB

The Relationship of the International Accounting Standards Board and the Financial Accounting Standard Board

Accounting Theory & Research 541

The History & Relationship of the International Accounting Standards Board and the Financial Accounting Standard Board

The International Accounting Standards Board (IASB), and independent standard-setting body of the IFRS Foundation was created after the Financial Accounting Standards Board (FASB) to develop and establish universal accounting procedures and standards for both boards. In recent years however, there has been significant shifts in the relationship between both entities given various considerations. Currently, IASB and
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With the growing number of multinational corporations, principles were required to surmount the obstacles and price related with generating numerous financial reports. In 1973, the International Accounting Standards Committee (IASC) was the first international group created to establish accounting standards. The IASC was restructured in 2001, and at that time became autonomous, renaming itself the International Accounting Standards Board (IASB) (International Accounting Standards Board, 2012). The international standards have developed rapidly with the modification (Financial Accounting Standards Board, 2012). The original IASC board members represented nine countries: Australia, Canada, France, Japan, Mexico, the Netherlands, the United Kingdom, the United States, and West Germany (Schroeder, 2011). As of 1983, IASC members included all trained accounting individuals who were members of the International Federation of Accountants. The ISAC was replaced in 2001 by the International Accounting Standards Board (IASB). They kept all of the ISAC’s pronouncements and positions unless they were superseded by new ones.
Relationship
The relationship between the International IASB and the FASB has been described as fluid and ever changing. Overcoming various impediments, such as language, culture, economic and political environments has made the overall process somewhat problematic. Despite
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