Accounting Standards Essay

Accounting Standards Boards Leslie Brian ACC/541 November 14, 2011 Delphine Agnor Wolsker Accounting Standards Boards 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

Background about the IASB The International Accounting Standards Board (IASB) is an independent body which approves and develops International Financial Reporting Standards (IFRS). They work under the oversight of the IFRS. The IASB was formed back in 2001 to replace the International Accounting Standards Committee. (www.iasplus.com,2015) The IASB has complete control over of all the methodical matters concerning the IFRS which includes: • Having complete control developing technical areas which

According to the International Accounting Standard Board, IAS 11 provides for accounting of revenues and costs pertaining to a construction contract. Revenues from a construction contract are only recognized when the contract is complete. However, there is another possibility whereby a proportion of net income is recognized over the period of the contract which is also known as the percentage of completion method. Contract revenues usually comprise of the initial revenue as agreed in the contract

At the beginning of the 21th century, the Financial Accounting Standards Board (FASB) started to realize the importance of fair value accounting as for a new measurement basis for asset and liability. The FASB believed the primary objective of financial reporting is to provide relevant and useful information about the future cash flow to current and prospective investors and creditors (Whittington, 2008). Since the historical cost accounting usually gives information about past transaction, not information

Generally Accepted Accounting Principles (GAAP) and Financial Accounting Standards Board (FASB) exist to make financial reporting consistent while reducing fraud and material errors. Because GAAP guidance is crucial for public and private companies depend heavily upon it to make financial decisions. Through GAAP, the entity understands how to properly carry out the accrual accounting process and most importantly when to recognize revenue. However, what happens when GAAP guidance is not sufficient

Accounting Standard 10: Accounting for Fixed Assets • Fixed asset is an asset held for producing or providing goods and/or services and is not held for sale in the normal course of the business. • Cost to include purchase price and attributable costs of bringing asset to its working condition for the intended use. It includes financing cost for period up to the date of readiness for use. • Self-constructed assets are to be capitalised at costs that are specifically related to the asset and those

Ben Bodi Intermediate Accounting II 12/08/2014 IFRS vs GAAP The Financial Accounting Standards Board (FASB) established the United States’ Generally Accepted Accounting Principles (GAAP) which have been used in US corporations for over 75 years. The purpose of having these principles allows financial statements from businesses to be compared truthfully and professionally. It also serves as a standard for accountants to follow. There is talk of the United States no longer following the principles

The Financial Accounting Standards Board has issued for public comment two Exposure Drafts related to its disclosure framework project. The first exposure draft proposes amendments to Statement of Financial Accounting Concepts - Conceptual Framework for Financial Reporting, Chapter 3 – Qualitative Characteristics of Useful Financial Information. The purpose of this proposed amendment is to clarify the concept of “materiality”. FASB defines materiality as, information is material if omitting it or

.......................... TUTORIAL DAY & TIME........………................... TUTOR’S FULL NAME......................................... Test 1 – Version 2 Session 2, 2012 Course Code: ACCG 224 Course Name: INTERMEDIATE FINANCIAL ACCOUNTING Time allowed: 55 minutes plus 5 minutes reading time Total No. of questions: Three Questions Instructions 1. You must answer ALL questions in the test booklet. No separate booklet will be provided to answer the questions. 2. This is

The Conceptual Framework defines income as follows: | Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants | | The gross inflow of economic benefits during the