Accounting Essay

283 Words2 Pages
Accounting Standards Boards International trade has become an integral aspect of the wealth of nations. However, with increased globalization of the economy, U.S. multinational companies face issues related to accounting for foreign-based operations, currencies and accounting principles. U.S. multinational companies must account for and report foreign-based operations measured in U.S. dollars using U.S. generally accepted accounting principles (GAAP) set by the Financial Accounting Standards Board (FASB) (Baker, Lembke, & King, 2005). Unfortunately, not all foreign entities account for their operations based on the U.S. dollar, nor do these entities practice GAAP. Therefore, “accountants preparing financial statements must consider both the differences in accounting principles and the differences in currencies used to measure the foreign Is this essay helpful? Join OPPapers to read more and access more than 550,000 just like it! get better grades entity’s operations” (p. 611). Developing uniform, consistent robust accounting standards provide for user confidence in the financial statements in addition to savings in time and effort from having one standard of compliance (Horne, 2005). Because methods used to appraise economic activity and to provide information needs differ from country to country, the International Accounting Standards Committee (IASC) formed the International Accounting Standards Board (IASB) in 2001 to synchronize accounting internationally (International Accounting Standards Board, About us, n.d.). This paper describes the relationship between the IASB and the FASB and includes the following: 1. A brief history of the relationship between the IASB and the FASB 2. The IASB equivalents for the original FASB pronouncements 3. Explains how the Masters of Science in Accountancy (MSA) program prepares the student for professional life

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