1. Describe the most significant differences between the FASB and the IASB.
2. Compare and contrast the conceptual frameworks of the IASB and FASB.
3. Discuss which conceptual framework is more coherent or relevant or applicable and explain why.
4. Evaluate the likelihood that IASC will someday replace the FASB
Significant difference between FASB and the IASB:
The Accounting realm requires governing principles that will bring about effective and accurate financial calculations. The accounting principles that govern the operations of a market economy are essential to the creation of an efficient functioning economy. The FASB is an acronym for the Financial Accounting Standard Board. This is private non profit organization whose primary principle function is to create acceptable accounting principles in the United States. The developed (GAAP) generally acceptable accounting principles are used to secure the operations of making the corporate financial reports of both the private and public companies in the United States. The FASB is a seven member board that is independent comprising of professional accountants who communicate the set financial accounting standards in the United States. The board is recognized by the (SEC) Securities and Exchange Commission as authoritative body. The board holds a mission of having comparable and consistent accounting principles for financial reporting that will govern the financial operations of the United States (Financial Accounting, 2011).
On the other hand the IASB is an acronym for International Accounting Standard board. It is independent body with private operations developed to approve the International Financial Standards. The board is aimed at enforcing global accounting standards and not only to the United States. The standards are of high quality and transparent so that the ...
This solution provides a comparison of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).