The International Accounting Standards Board

1045 Words5 Pages
Introduction The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) oversee the standards for both the US GAAP (Generally Accepted Accounting Principles) and the IFRS (International Financial Reporting Standards). With the proliferation of global business and ever growing markets, an attempt has been made within the last ten years to align both standards the two standards. The US GAAP has always given the guidelines and steps for American companies to follow when preparing their financial statements. Whereas the IFRS has always been more of standardized language to use in accounting practices internationally. The following is a brief analysis of changes, differences and outcomes from this transition.
In September 2005, the IFRS and GAAP committed to standardizing the Fair Value Measurement in both the IFRS and GAAP. A committee was created that to evaluate all techniques being used across the board of both standards. In May of 2011 the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) issued new guidance on fair value measurement and the disclosure requirements for both the IFRS and the GAAP. (FASB, May) The new guidelines defined the same in both the IFRS and GAAP closes a gap that has been a problem with more companies operating globally in today’s market. Having the new guidance process helps companies know when to use fair value measurement and
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