It was later reorganized in 2001 to become the International Accounting Standards Board (IASB). In 1973 the Financial Accounting Standards Board (FASB) was also born. The accounting standards that the FASB helps formulate for accountants in the United States are the generally accepted accounting principles (GAAP). Over 100 countries around the world are currently using the international financial reporting standards (IFRS) created by the IASB. The amount of countries that have adopted the IFRS has drastically increase in the 21st century since prior to 2002 only eight countries were using IFRS (Fasb, 2011). In the 1990s the concept of accounting convergence began to raise interest among the business community which caught the attention of FASB and IASC. In 1994 the FASB and IASC undertook their first standard setting project together. The purpose of the project was to improve the earnings per share (EPS) standards to eliminate any differences in the calculation of the metric between the two standard setting bodies. The following year both standard setting bodies collaborated in another project whose purpose was to compare the U.S. GAAP and the IASC standards. Once the IASC was converted into the IASB in 2001 the pace of convergence accelerated a lot. One of the major events that helped the IASB gain credibility worldwide was the adoption of the European Union of IFRS. A project that was signed in 2002 in which the FASB and IASB agreed to improve convergence between U.S. GAAP and IFRS was the Norwalk Agreement. “The Norwalk Agreement set out the shared goal of developing compatible, high-quality accounting standards that could be used for both domestic and cross-border financial reporting” (Fasb, 2011). In 2006 the FASB and IASB issues a Memorandum of Understanding that created a two year deadline to achieve greater progress in the convergence project by 2008. In 2007 the Securities and Exchange Commission released a concept released that allowed companies the optional use of IFRS by U.S issuers in the financial statements filed by companies for the SEC. Another sign of progress in the convergence project was the creation in 2007 of a converged standard by the FASB and IASB for business combinations. In 2008 the SEC issued a proposed roadmap to adoption of IFRS in the United States and a proposed rule on optional early use of IFRS. The latest update on the convergence project was issued on April 21, 2011 in a document called Progress Report on IASB-FASB Convergence Work (Fasb, 2011). The MSA program is a great opportunity for me to develop my skills and abilities in the accounting profession. In the competitive work environment of the 21st century gaining a graduate education can give me a competitive advantage over other candidates. In the United States only about 6.8% of the population has a master’s degree (Info, 2005). The five courses accounting courses in the UOP MSA curriculum look like outstanding courses that will help me gain more specialized knowledge in accounting. I am looking very forward to taking the forensic accounting course. “Forensic accounting is a specialty requiring the integration of investigative, accounting, and auditing skills” (Answers, 2011). Forensic accounting can be used by corporations to solve legal problems. Once I complete this program the doors of opportunity are going to open for me. Accounting is one of the hottest professional fields. Due to the complexity
Week One Individual Assignment Connie Johnson August 15, 2011 University of Phoenix The integration of accounting across the world is a concept that started back in the 1950’s due to the vast amount of international business transactions that came in the aftermath of World War II…
Thus the current and the non-current assets and liabilities of the company has been assessed so as to investigate on the valuation method thus adopted by the company. At time the valuation of the assets of the company gets inflated due to the method of valuation thus adopted by the company.
Generally, income is recognized as revenue when a company delivers its product or rendered service and receives payment for it. Under accounting principle of ‘revenue recognition’, revenue is recognized only under specific circumstances. According to International Accounting Standard 18: Income is defined as 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.
Different accounting policies can provide different estimates of earnings therefore accounting profit is not only an arbitrary figure but also subjective in nature. Accounting income can also be misleading because of the fact that it can distort the figures like Earnings per share (EPS) due to its subjectivity.
The choice of the mode will depend on the company’s fundamentals as well as the nature of ownership desired by it. These decisions are crucial and most of the big companies seek expert financial advice in such matters. This is mainly
existence of accounting records is to minimize or reduce the effect of principal-agent problem; its impact is reduced by measuring and close monitoring of the performance and reporting the results to parties concerned.
Financial accounting is a discipline which has evolved over
12 pages (3000 words)Essay
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