Accounting Standards Boards Paper
Within this paper, I will discuss the difference between the International Accounting Standards Boards (IASB) and the Financial Accounting Standards Board (FASB). This will include a brief history between the two boards and the relationship between the IASB equivalents of the FASB original pronouncement. Finally, I will discuss how the MSA program prepares me for a professional career within the accounting field.
In 1973, the first international standards board was set forth called the International Accounting Standards Committee (IASC). In 2001, it became the first international independent setter for FASA. In 2009, the European Union and 100 other countries required use of the International Financial Reporting Standards (IFRS) that were set forth by FASB. In 2010, the Securities and Exchange Commission (SEC) supported global accounting standards and asked for a plan to incorporate US accounting standards with IFRS and US financial accounting ("International Convergence," 2011).
In 2001, the IASB was founded. It succeeds ISAC and was responsible for international accounting standards. The ISAB is made up of 15 member in which each one got a vote. In 2009, it grew to 16 members giving more consideration to the geographic area. The members are made up of academics and members setting the accounting standards within their own countries ("International accounting," 2012).
In 1971, the American Institute of CPA’s (AICPA) created two committees, the Wheat committee and the Tureblood committee. These committees were designed to help determine the objectives of financial statements. In 1972, the Wheat committee was abolished and the FASB was created. The members of the FASB were full time paid employees made up of various organizations (Schroeder, Clark, & Cathey, 2010).
There were two types of the original pronouncements of FASB, first the statements of financial accounting concepts (SFAC’s) and technical bulletins....