Financial Accounting Standards Board

In accounting terms, the process to harmonize the prevailing accounting standards that are issued by different regulatory bodies is called convergence. Although it is a known fact that the variety of accounting rules and practices around the world is due to the differences in culture, language, religion, education, and ideology and politics. However, the need of a single set of standards for the reporting of financial statements is becoming inevitable. With the significant growth of the…

Various accounting bodies establish their own ethics board that is in charge of creation and implementation of ethical standards. In America, these guidelines are established by the ethics committee of the American Institute of Certified Public at domestic level, with contribution of state level establishments. Execution of these ethical guidelines is performed by these bodies and by other legal bodies including SEC. Many accountants and firms have been punished by these bodies for their…

Financial reporting communicates what a company’s financial and operational condition is at any specific time. To make the reporting clear and concise, the Financial Accounting Standards Board (FASB) created the Generally Accepted Accounting Principles (GAAP) which is a set of standards that includes a set of codes that provide structure and organization. (Spiceland, Sepe, & Nelson, 2013, pg. 10) Similarly, international countries have created their own set of accounting standards. However, in…

The accounting educators, the major accounting firms, the American Institute for CPAs (AICPA), and the accounting textbook publishers have recognized that the shift from a rules-based approach to a principles-based approach will require the preparers and auditors of financial statements to utilize more critical thinking skills and to be used to working with ambiguity in the absence of detailed and highlighted accounting standards as in GAAP The AICPA Board of Examiners have decided to test…

International Reporting Standards (IFRS) and Generally Accepted Accounting Principles also known as GAAP. According to AICPA International Reporting Standards can be defined as “a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.” International Financial Reporting Standards is used in over 120 countries worldwide. (International Financial Reporting…

the accounting processes and procedures can be complicated and require the use of many resources to prepare accounting documentation that is required by law. Specifically, the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) which are the standing guidelines for accounting, differ enough to make the processes redundant. GAAP is the U.S. standard for accounting while IFRS which is governed by the International Accounting Standards Board…

International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) are rules and guidelines established to attempt to standardize accounting and recording practices across the United States and Internationally. While United States has traditionally used GAAP, the ever changing world market makes it necessary for the US to begin to use IFRS in conjunction with or sometimes in place of GAAP. In an effort to standardize fair value measurements for financial…

Revenue is considered one of the most significant measures used nowadays in the financial world to assess the results and to achieve proper recognition of revenue of paramount importance. It also operates the success of most businesses, as it is a means of generating profits and increasing equity. Revenue recognition is an accounting principle under generally accepted accounting principles (GAAP) that determines the specific conditions under which revenue is recognized or accounted for.…

The Notion That Uniform Standards Alone Will Produce Uniform Financial Reporting Seems Naïve Ali Raza Roll No. MB2M-16-05 Institute of Management Sciences, Multan • Introduction In this assignment, I have studied the reasons which encourage the countries to maintain national differences in IFRS. Then identified the ways by which national differences are inculcated in the IFRS. National differences in the IFRS eventually creates the un-uniform IFRS financial reporting quality. But, there are…

separate from the purchase of the vendor’s products, and b. The fair market value of the benefit can be reasonably estimated. This is further clarified in the converged revenue recognition standard issued by FASB and IASB in May 2014. (deBell, Stegall, Young, & Coffey, 2014) The converged revenue recognition standard is known as FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and IFRS No. 15, Revenue from Contracts with Customers, respectively. FASB ASU No. 2014-09…