Fasb & Iasb: Benefits of Convergence

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FASB & IASB: Benefits of Convergence Mohammad F. Ibrahim Keiser University Professor Diann Ferrell Introduction Today’s environment has turned business leaders towards looking at their organization in a global perspective. Every company has to either compete or participate in the global market. Competition is about the position of the organization comparing to other organizations performing the same activity. Financial statement is one of the main facilitators to the comparison process, according to IAS 1.1 financial statements presentation used for promoting the comparability with other entities financial statements (2010). Financial statements describe the organizations financial position, and should be prepared in a manner that the investors, which are the most important external users of the financial statements, could make a better understanding and comparability with other financial statements; to be comparable financial statements should be set in accordance with a set of standards such as IFRS and GAAP. A view of FASB & IASB Financial accounting standards board (FASB) was established in 1973 to generate standards concerning the preparation of financial statements of nongovernmental organizations in the United States (FASB, n.d). FASB’s mission is to provide standards for the financial statement that would help financial statement users in making decisions. FASB is part of an independent structure including Financial Accounting Foundation (FAF), Financial Accounting Standards Advisory Council (FASAC), Governmental Accounting Standards Board (GASB), and Governmental Accounting Standards Advisory Council (GASAC). International Accounting Standard Bored (IASB) the responsible for the development and publication of International Financial Reporting Standards (IFRS). IASB was established instead of International accounting standard committee (IASC) in

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