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Accounting Standards Boards - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Relationship between IASB and FASB. The IASB main aim is to make international financial reporting standards while FASB focuses on a rule based approach. The two boards IASB and FASB are working together since 2002…
This convergence was done in order to improve the two main US accounting principles i.e. IFRA and GAAP. China and Japan also worked in this coverage of two boards. In accordance with the 2010 reports, the Securities and Exchange Commission’s have issued a statement of global accounting standard and convergence in order to direct the SEC staff. This was done to make a work plan which should be used to incorporate IFRA standards in US financial reporting system (Colson, Robert H, 2003, p.22). A brief history on the relationship of these two boards is described below: Interest of international accounting began in 1950s due to the integration of World War II and due to the increase of capital flaws in the systems. An international congress of accountant was hosted by American Institute of Certified Public Accountants in 1962. It discussed the steps for the development of accounting, auditing and other reporting standards. The first textbook of international accounting was published in 1967 which was written by a member of FASB. IASB and FASB relationship was informal one. But in 1988 FASB became a member of IASC which meant that FASB was able to participate in the meetings of IASC. In 1993 FASB and its counter party conducted a joint venture project. ...
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