...Intermediate Accounting I The Financial Accounting Standards Board (FASB) was established in 1973 in order to create and develop standards of financial accounting and reporting for the general use of the public and, in particular, users of financial information including auditors, creditors and investors. This financial information is standardized for greater clarity for the guidance and education of users (FASB org, 2009a). The primary purpose of FASB as a private and non-profit organization is to develop Generally Accepted Accounting Principles (GAAP) in the United States. The FASB sets-up accounting standards for public companies in the U.S. under the mandate of the Securities and Exchange Commission (SEC). Hence, the FASB oversees the financial security; stability and overall well-being of the U.S. economy in its role of ensuring the standardization and credibility of financial information that are made available to the public. The Financial Accounting Foundation (FAF) that was established in 1972 as an independent and private sector organization (FAF, 2009) handle the general oversight, administration and finances of the FASB. The FASB is composed of seven full time board members that have extensive knowledge and experience in accounting, finance and business, as well as ethical concern that public interests are well represented in matters pertaining to financial accounting and reporting. The board members are chosen from diverse backgrounds in the field of accounting...
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...Accounting Standard Board Paper ACC/541 June 18, 2012 Accounting Standard Board Paper In the world of accounting there needs to be standards for all of the countries, whether they are in the United States of Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed is the International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB). The first thing that needs to be discussed is the history of the two boards. The history will explain the relationship between the IASB and FASB. There will also be a discussion on how the University of Phoenix Master in Science of Accounting program is related to the IASB and FASB. The Accounting Principles Board (APB) was removed and replaced with the FASB in 1972. They determined that all of the members of the FASB were to be full-time paid employees which the APB were only part-time and were not paid. After 1973, the FASB was given the official approval of being in charge of issuing accounting standards (Schroeder, Clark, & Cathey, 2011). The FASB consists of the American Accounting Association, AICPA, Financial Executives Institute, National Association of Accountants, and the Financial Analysts Federation (Schroeder, Clark, & Cathey, 2011). In 1997, the FASB board of trustees decided...
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...Part I: Know the FASB I. As discussed many times in ACC 310, the FASB is the current accounting standard setters in the U.S. as they are empowered by the SEC. Visit the FASB website at www.fasb.org and answer the following questions: (Do not cut and paste but answer in your own words. Any material quoted should be cited). 1. What is the FASB mission? 1pts The FASB mission is to establish and improve financial accounting standards and reporting. This sets the guidance for nongovernmental entities that provide decision-useful information to users. Users include issuers, auditors, and other users of financial information. 2. Who are the current FASB Board members and what are their backgrounds? 2pts a. Russel G. Golden, Chariman. Mr. Golden has an extensive background with the FASB holding different positions ranging from the FASB’s Emerging Issues Task Force, Technical Director of the FASB, and served 6 years as an FASB staff member. b. James L. Kroeker, Vice Chariman. Mr. Kroeker used to work for Deloitte as the Deputy Managing Partner for Profession Practice. He also worked for the Securities and Exchange Commission as the Chief Accountant. c. Daryl E. Buck, Board Member. Mr. Buck worked at Reasor’s Holding Company for 18 years. It is a privately-owned retail grocery company. d. Thomas J. Linsmeier, Board Member. Mr. Linsmeier was a professor at Michigan State University. He also worked for the...
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...The Financial Accounting Standards Board (FASB) is an autonomous board composed of accounting professionals who establish and communicate financial accounting and reporting standards in the United States. The FASB was formed in 1973 to create standards in the interest of the public; including issuers, auditors, and users of financial information. The mission of the FASB is to create accounting and reporting standards that will provide decision-useful information to investors and other users of financial statements. Such standards are necessary for the efficient performance of the financial system as decisions regarding the distribution of capital rely on transparent, credible, and comprehensible information. If accounting standards failed to enforce these qualities in financial reports, it would be impossible to objectively evaluate financial information. Members of the FASB and staff are collectively experienced and knowledgeable in a range of areas including finance, accounting, and investing. The Foundation’s Board of Trustees appoints the seven full-time FASB members who may serve up to two terms of five years. The Board is backed by a staff of over sixty professionals who perform research and assist in many due process activities. According to the FASB website, the Board and staff members “each have a concern for investors, other users, and the public interest in matters of financial accounting and reporting.” An independent structure is necessary to ensure that private...
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...Financial Accounting Standards Board The Financial Accounting Standards Board (FASB) has been the assigned organization in a private sector for establishing standards. These standards are important to be useful because it allows investors to make informed decisions. Financial information must be reliable, consistent and transparent. Since 1973, FASB has been part of a structure that’s independent of all other business and professional organizations. The rest of the parts are Financial Accounting Foundation (FAF), Financial Accounting Standards Advisory Council (FASAC), Governmental Accounting Standards Board (GASB) and Governmental Accounting Standards Advisory Council (GASAC). The role of monitoring and controlling business reporting and accounting practices in a modern organization is to establish and improve standards of financial accounting. FASB has a board full of members that participate in accomplishing the mission. There are 7 board members as well as several staff members that help assist. The board members are: * Russell Golden is a chairman. He began in July of 2013. He served six years as a staff member (technical Director) for the FASB before he got appointed to the chairmen. His term will end in 2017, but then he can get an appointment to an additional 3 more years. He is also chaired in FASB’S emerging issues task force. * James Kroeker is the vice chairman. He was appointed in September 2013. He served as the deputy managing partner for professional...
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...Accounting Standards Boards Sharon Little ACC 541 Marina Layvand May 27, 2013 The FASB, Financial Accounting Standards Board was created in 1973 when the APB, Accounting Principles Board, was abolished. The FASB focuses on accounting standards in the United States. The board established the Generally Accepted Accounting Principles, or GAAP, emplyed by financial accountants in the United States. It also establishes rules and standards for individual certified public accountants practicing in the United States. The IASB, International Accounting Standards Board, focuses on global standards of accounting. It was established in 2001. The IASB has sixteen members on board, and each one has a vote. Members are selected based on their professional competence and practical experience. The IASB deals with the development of International Financial Reporting Standards and promotes the application of the standards. The IASB’s standards are used as national requirements, as the basis for some or all national requirements, as an international benchmark for those countries that develop their own requirements, by regulatory authorieties for domestic and foreign companies, and by companies themselves. (Schroeder, Clark, & Cathey, 2011, Ch. 3, p. 90-91). The FASB and the IASB work together to bring together a variety of accounting and financial reporting requirements that have been developed...
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...Accounting Standards Board Paper Katherine Meyer ACC/ 541 Kenneth Burton July 30, 2012 The Accounting Standards Board and the Financial Accounting Standards Board have been critical in modernizing the accounting field. The Accounting Standards Board was created out of criticism of the field and the Financial Accounting Standards Board was created out of criticism of the Accounting Standards Board. The histories of the boards have improved the accounting profession and have made the flow of information more fluid. Around 1959 the methods that were used to formulate accounting principles were in question because the methods had not arisen from research or had been based on theory. About the same time, the CAP was being questioned for issuing inconsistent standards. The CAP was made up of part- time members whose independence quickly came into question. The members of the CAP were also required to also be members of the AICPA and it was not long before accountants and the financial statement users were demanding a wider representation in the development of accounting principles. In response to the demand the AICPA forms the Accounting Principles Board or the APB. The APB was made up of seventeen to twenty- one accounting professionals, individuals from the industry, the government, and academia. The objectives of the APB were to advance the written expression of the generally accepted accounting principles and to narrow the areas of differences in appropriate practice...
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...Accounting Standard Boards Paper ACC/541 September 09,2013 Heber Howard Accounting Standard Boards Paper In the business of accounting two boards stand out the first one is the International Accounting Standards Board (IASB), and the second is the Financial Accounting Standards Board (FASB). The two boards are putting together this joint adventure to have a universal standard recognized internationally by entities for reporting of financial statements. This adventure will help to ensure that reporting of financial information is consistent globally and in the United States. The adventure will also help investors, stakeholders, the public, and financial institutions to read the financials in a clearer format. This paper will provide a brief understanding of the two boards joint adventure referred to as the convergence project. After discussing the relationship between the two boards along with the equivalents of the FASB original pronouncements, the paper will explain briefly how the MSA program prepares students for a professional life within the accounting vocation and how he or she will be able to make ethical business decisions. IASB and FASB The IASB is an independent regulatory body based in the United Kingdom, which aims to develop a set of global accounting standards (Investopedia, 2013). The IASB has 14 board members 12 are full-time and two are part-time and was established in 2001 as the successor to the International Accounting Standards...
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...Accounting Standard Board Paper ACC/541 June 18, 2012 Accounting Standard Board Paper In the world of accounting there needs to be standards for all of the countries, whether they are in the United States of Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed is the International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB). The first thing that needs to be discussed is the history of the two boards. The history will explain the relationship between the IASB and FASB. There will also be a discussion on how the University of Phoenix Master in Science of Accounting program is related to the IASB and FASB. The Accounting Principles Board (APB) was removed and replaced with the FASB in 1972. They determined that all of the members of the FASB were to be full-time paid employees which the APB were only part-time and were not paid. After 1973, the FASB was given the official approval of being in charge of issuing accounting standards (Schroeder, Clark, & Cathey, 2011). The FASB consists of the American Accounting Association, AICPA, Financial Executives Institute, National Association of Accountants, and the Financial Analysts Federation (Schroeder, Clark, & Cathey, 2011). In 1997, the FASB board of trustees decided...
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...Accounting Standards Boards Carmen Morales ACC 541 Nov-12, 2012 Sonia Quintero Accounting Standards Boards The society has to follow all kind of laws, regulations, rules, or standards established by legal authorities. In accounting environment is not the exception. Two types of accounting standards boards are the ones that regulate accounting standards: the Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB). These two boards will help us to ensure if the information is done properly and are reported in a consistent way so that investors can determine what company is better to invest in. First, there will be an explanation of the relationship between the two boards and the IASB equivalents of the FASB original pronouncements. Finally, there will be an explanation of how the MSA program prepares the student for a professional life within the accounting vocation. In 1971 the board of directors of the American Institute of Certified Public Accountants (AICPA) appointed two committees: the wheat and the trueblood committee. The purpose of the wheat committee was to study how financial accounting principles should be established. The purpose of the trueblood was to determine the objectives of financial statements (Schroeder, Clark, & Cathey, 2011). In 1972 the wheat committee recommended to abolish the Accounting Principles Board (APB) and the creation of the Financial Accounting Standard Board (FASB). The new board was going to be...
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...accounting theory. Historical development of accounting standards. Authoritative pronouncements and standards-setting bodies. Questions 1 2, 3, 4 5, 6, 7, 8 Cases 1 3, 4 2, 4 4. 8, 9, 10, 11, 12 5, 17 5. 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 23, 24, 25, 26, 27 28 29 6, 7, 8, 10, 11, 12, 13, 15, 16 6. 7. 8. Role of pressure groups. International accounting. Ethical issues. 9, 18, 19 15 14 1-1 ASSIGNMENT CHARACTERISTICS TABLE Item C1-1 C1-2 C1-3 C1-4 C1-5 C1-6 C1-7 C1-8 C1-9 C1-10 C1-11 C1-12 C1-13 C1-14 C1-15 C1-16 C1-17 C1-18 C1-19 Description Financial accounting. Objectives of financial reporting. Accounting numbers and the environment. Need for accounting standards. AICPA’s role in standards setting. FASB role in standards setting. Government role in standards setting. Meaning of generally accepted accounting principles. Politicalization of standards setting. Models for setting accounting standards. Standards-setting terminology. Accounting organizations and documents issued. Accounting pronouncements. Issues involving standards setting. Securities and Exchange Commission. Standards-setting process. History of standards-setting organizations. Economic Consequences. Standards-setting process, economic consequences. Level of Difficulty Simple Moderate Simple Simple Simple Simple Simple Moderate Complex Simple Moderate Simple Simple Complex Moderate Moderate Moderate Moderate Moderate Time (minutes) 15-20 20-25 10-15 15-20 20-25 20-25 10-15 20-25...
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...standardized accounting system for financial information to be exchanged and interpreted. Thus, a goal and a path were developed to obtain the International Convergence of Accounting Standards. To understand the International Convergence of Accounting Standards knowledge is needed of its meaning, the roles of the IASB and FASB, it's history, where the world is in its process, futures plans, its benefits, and what the International Convergence means for Accounting in the US. Meaning of International Convergence of Accounting Standards: The FASB believes that the goal of convergence is to establish an exclusive set of reputable, international accounting standards. Convergence allows for companies both domestic and internationally to use the same standards for financial reporting. The path needed to develop such standards involves the FASB and the IASB to facilitate their efforts to improve upon the U.S. generally accepted accounting principles and the International Financial Reporting Standards and eradicate the differences between the two. Description of IASB & FASB and their roles: The International Accounting Standards Board is an independent board of members from around the world with an objective to set accounting standards. Their main responsibility is to develop and promote the use and application of the International Financial Reporting Standards. The IASB plays a very important and influential role in International Convergence. Due to their international influences...
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...structure: In response to the SEC’s Accounting Series Release No. 4, the American Institute of Accountants (AIA) reorganized its Committee on Accounting Procedure (CAP) in 1939 and increased it from 8 to 22 members, all accounting practitioners except for three academicians. To emphasize its importance and the AIA’s intent to demonstrate leadership, Clem W. Collins, AIA president, was designated CAP chairman. George O. May, who had led the prior committee as well as the AIA Special Committee on Cooperation with Stock Exchanges, served as CAP vice-chairman. d) strengths; First, accounting practices, especially in terms of uniformity, improved significantly. Second, the private sector was firmly established as the source for accounting policy making in the United States. Accounting Research Bulletins (ARB) The CAP would issue 51 ARBs during its existence, several of which survive in today’s FASB’s Codification, and four Accounting Terminology Bulletins. e) weaknesses: The CAP decided early on that formulating a statement of broad principles would take too long and instead approached issues on a case-by-case basis. Without a framework and often without adequate research, the CAP relied on the members’ collective experience for agreement on member-suggested solutions. In 1949, the CAP reconsidered developing a framework but instead codified and updated its first 42 ARBs. The CAP was criticized for its piecemeal, “firefighting” approach to setting standards...
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...Accounting Standard Board Paper ACC/541 June 18, 2012 Accounting Standard Board Paper In the world of accounting there needs to be standards for all of the countries, whether they are in the United States of Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed is the International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB). The first thing that needs to be discussed is the history of the two boards. The history will explain the relationship between the IASB and FASB. There will also be a discussion on how the University of Phoenix Master in Science of Accounting program is related to the IASB and FASB. The Accounting Principles Board (APB) was removed and replaced with the FASB in 1972. They determined that all of the members of the FASB were to be full-time paid employees which the APB were only part-time and were not paid. After 1973, the FASB was given the official approval of being in charge of issuing accounting standards (Schroeder, Clark, & Cathey, 2011). The FASB consists of the American Accounting Association, AICPA, Financial Executives Institute, National Association of Accountants, and the Financial Analysts Federation (Schroeder, Clark, & Cathey, 2011). In 1997, the FASB board of trustees decided...
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...Accounting Standards Boards Debra McCaster ACC 541 June 27, 2011 Ken Burton Accounting Standards Boards The IASB (Internal Accounting Standards Board) set standards dealing with international accounting and FASB (Financial Accounting Standards Board) has standards dealing with international accounting but they mainly focus on accounting within the United States. The purpose of the convergence is to eliminate the differences dealing with international accounting and to have a much better focus on the consistence of the standards for international accounting. In 2003 FASB and the IASB decided to come together and create a short-term and long-term convergence project to attain a better uniform set of accounting standards. Among the efforts are (1) The FASB’s Short-term international convergence Project, (2) the Norwalk Agreement, and (3) the Roadmap to Convergence (Schroeder, Clark, & Cathey, 2011). The short-term convergence project will consist of nine short-term projects. These projects will consist of segment reporting (ISAB), fair-value option, including investment properties (IASB), borrowing cost (IASB), government grants (IASB), impairment (joint), income tax (joint), joint ventures (IASB), research and development...
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