The International Accounting Standard Board

When it comes to the rules of accounting, the Financial Accounting Standards Board, or FASB, is in charge mostly. Their main responsibilities include making changes to the rules of accounting they think is crucial for key people and businesses as well as inform them of the changes made. To make sure the rules are understandable by the people and businesses, FASB change and update them to fit what is in today’s capabilities. One of the most important recent changes happened in the first month of twenty-sixteen: many known as “Standard Update 2016-01”.

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 Committee on Accounting Procedure of the American Institute of Certified Public Accountants. The Financial Accounting Standards Board 's mission is "to establish and improve standards of financial accounting and reporting for the guidance and

Inventory is an asset, and it has value and significance to a company since it can be sold for cash. This usually occurs in a repetitive pattern during the cycle of the business, where inventory is bought, sold, created, and acquired. The central focus of a company should be matching inventory with cost and subsequent revenue (FASB 330-10-1, 2009). Defined clearly, “the primary basis of accounting for inventories is cost,…defined generally as the price paid…to acquire as asset” (FASB, 330-30-1, 2009). The Financial Accounting Standards Board (FASB) chose first-in, first-out (FIFO), last-in, first-out (LIFO), and average cost to be the only methods used to account for inventory dependent on which “reflects period income” the best (FASB 330-30-9, 2009). However, many question the use of historical cost to value inventory to be the best method and, under ideal conditions, these methods to value inventories may need adjustment as well.

The Financial Accounting Standards Board (FASB) is the body in the U.S. that sets the accounting standards. These standards issued are referred to as the Generally Accepted Accounting Principles. FASB has an Accounting Standards Codification (ASC), which is a source of seeing nongovernmental US GAAP. FASB provides a Codification research system website, which can be utilized by accountants, lawyers, and students as a means to view content, perform research, and submit feedback. The goal of the Codification was to give accurate up-to-date standard-setting activity in one spot while being user-friendly by codifying all US GAAP. According to the FASB official website, “…the Codification is expected to: 1. Reduce the amount of time and effort required to solve an accounting research issue 2. Mitigate the risk of noncompliance through improved usability of the literature 3. Provide accurate information with real-time updates as Accounting Standards Updates are released 4. Assist the FASB with the research and convergence efforts (About the Codification v4.10 https://asc.fasb.org/help&cid=1176163588636).”

Regulators and Accounting Standards Board have long struggled with the developing comprehensive reporting standards that will improve transparency, reliability, completeness, and comparability of the financial statements prepared by the company. The need to promote investor confidence in the market makes it important to improve the financial reporting standards so that investors are able to obtain accurate, reliable and complete information in order to make informed judgments. This paper reviews recent attempts by SEC and FASB to improve the reporting of off-balance sheet transactions, variable interest entity, and non-controlling interest.

Since 2007, both the Financial Accounting Standards Board (IASB) and the International Accounting Standards Board (IASB) have been collaborating on a unified project pertaining to the creation of a new accounting standard for insurance contracts. Currently, no international accounting standard exists under the International Financial Reporting Standards (IFRS), as they tend to follow the guidance of U.S. Generally Accepted Accounting Principles (GAAP). However, the standards proposed by both boards differ slightly. In June 2013, the FASB issued an Exposure Draft, Proposed Accounting Standards Update: Insurance Contracts (Topic 834) that strayed slightly from the IASB’s Exposure Draft Insurance Contracts also issued in June 2013. Initially, the FASB introduced a model with a scope including not only insurance entities but also noninsurance entities that issued insurance contracts. Nevertheless, the FASB’s goals in the alternation of insurance accounting have diverged further from its initial convergence efforts with the IASB after the FASB voted in a board meeting on February 19, 2014, to narrow the focus of the insurance contracts project to pertaining solely to insurance entities, which is the same scope as current U.S. GAAP. The FASB was pressured by insurance entities, professional accounting organizations, and other financial statement users to reduce the scope of its exposure draft on insurance accounting or to specify which entities would fall under the control of the

The International Accounting Standards Board (IASB) and U.S. Financial Accounting Standards Board (FASB) have been working on convergence of U.S. GAAP and IFRS since 2002, but it has been a challenging process on combining the standards between U.S. GAAP and IFRS, especially when there are two set of approaches on standards, where U.S. GAAP is rules-based and IFRS is principles-based. The U.S. GAAP is rules-based by following a set of guidelines opposed to IFRS, is principles-based by having an objectives of good reporting and provides the best judgement on the guidance to a specific circumstance. It takes a lot of effort to converge accounting standards between U.S. GAAP and IFRS, such as training personnel on the new policies and procedures, updating the accounting policies, improving a new information system, and updating internal control procedures, which you can see the reason American companies is reluctant on this transition. Just like any new updates in standards, it has its issue and difficulty as in the cost of transition, the resources to make the changes, and a period where financial reporting will be unable to have the comparability for financial statement users. Bottom line, transition is a messy process and have its complexity.

There is no surprise that the United States is taking its precious time conforming to someone else’s standards. For years, teachers and engineers from around the world have been inquiring why the United States has not switched to the metric system in its classrooms and stop teaching the old method of measurement. After the long fight to change the standard, teachers now take time to introduce the subject in class. Mirroring the struggle to get the metric system taught in classrooms, it is now time for the United States to make a decision in the accounting profession. The International Financial Reporting Standard was supposed to be the universal standard of accounting across every nation by the year 2015, but the United States Security and

There are many different types of accounting standards and principles in the business world. It would be difficult for financial markets to operate and compare reports with these different various standards. Therefore, the International Accounting Stands Board have developed a new way of reporting financial information. The International Financial Reporting Standards (IFRS) foundation and the International Accounting Standards Board (IASB) were established in 2001 in order to develop a set of high quality and acceptable financial accounting standards. ("IFRS - Organisation history", 2016). The aim of this report is to firstly summarise the significant changes in the Australian Accounting Standards Board (AASB 15) and how they address perceived deficiencies in the current standards. Then, it will highlight the future implications of adopting the AASB 15 for Australian companies.

(a)On 1 January 2005,all the stock exchange listed companies in Europe adopted the International Financial Reporting Standards (IFRS) written by the international Accounting Standards Boards. According to IASB, the setting body of IFRS, their primary objective is to develop a set of high quality, transparent ,understandable, global accepted financial standards in the public interest (IFRS 2015) . Furthermore, the statement made by European Commission also explained the benefits including the elimination of barriers to international trades, the increasing of transparency and comparability of company accounts, the improvement of comprehensive strength and the rapid promotion of economic growth (Commission 2002). Based on the public

International Accounting Standard Board (IASB) is a professional body that develops and approves International Financial Reporting Standards (IFRSs). The IASB is known as an independent and a private sector organizational. IASB was formed to replace the International Accounting Standard Committee. The IASB organization is responsible for all technical matters of the IFRS Foundation that includes ‘full discretion in developing and pursuing its technical agenda, subject to certain consultation requirements with the Trustee and the public, the preparation and issuing of IFRSs (other than interpretations) and exposure drafts, following the due process stipulated in the Constitution, and the approval and issuing of Interpretations developed by

The International Accounting Standards Board (IASB) enforced the harmonization of the accounting standards into a single set of accounting standards that is to be used globally in the preparation of financial statements and is called the International Financial Reporting Standards (IFRS). This essay will discuss the benefits of developing the IFRS, which is to enhance and increase the quality of the companies’ financial statements through transparency and comparability, value relevance, timely loss recognition by presenting evidence from Spain and Bahrain. Other benefits include facilitating cross-border investments; reducing equity cost, and decreasing earnings management. Hence, this allows companies to provide information that will be

However, the information provided above by the company regarding share capital is further disclosure of the equity capital. Hence, a secondary information which involves just the disclosure, which can be in the form of list or table etc.

The International Financial Reporting Standards (IFRS) have made an impact on the foundations of accounting, resulting in a different stance from the prior UK GAAP. Some of the more noticeable changes included; the increase of government resources being allocated to the standard. Companies will be required to provide all information of the incoming and expenditure of all money and assets under the new regulations. The presentation and terminology were altered in the current “Income Statement” and “Statement of Financial Position” leading to a change of some aspects on the budgets and estimates. “Fair value”; the unbiased evaluation of an assets potential market

The IASB Conceptual Framework is a framework developed by the International Accounting Standards Board (IASB). In a nutshell, what this framework does is to lay out the concepts needed for accurate preparation and presentation of financial statements to external users such as auditors, tax authorities, investors, regulatory authorities and so on. According to the IASB, the Conceptual Framework for Financial Reporting does the following;