FASB and IASB have been working on a Convergence Project for over ten years. In a 1-page essay discuss the two standard-setters and the body of standards issued by each. What is the objective of convergence?© BrainMass Inc. brainmass.com October 25, 2018, 9:25 am ad1c9bdddf
FASB. (2014). International Convergence of Accounting Standards. Financial Accounting Standards Board, retrieved Feb 21 from http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156245663.
The Two Standard Setters
The FASB's mission is to promulgate high quality accounting standards to inform and assist users of financial statements reach decisions based on relevant, reliable, comparable and understandable reports. They do this through a participative process of issuing drafts for comment and reading user, preparer, regulator and market participant reactions and suggestions and then re-drafting until they feel the standard is ...
Your discussion is 392 words and a reference and discusses how these two boards work together and the goal of convergence.
Financial Reporting and Theory
Please identify what accounting standard is the UK and US using at the moment.
Detail describe what is the difference between principle based accounting standard and rules based accounting standard.
What is the US current status/objectives on current convergence project between the FASB and the IASB.
Critically assess how the use of principles-based standards will aid effective standard-setting by the IASB, and aid decision-usefulness for stakeholders.
(Please provide arguments between rules based & principles based accounting standard. I am looking for an exploration of arguments between rules and principles)
Please use accounting theory examples to back up your arguments.
Please consider the perspective of the standard-setters, their worldview, purpose and objectives.
Using the Kolb diagram will really help, and consider how which model is (or should be) being applied -- is it normative, positive etc.?
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