Accounting Standards Boards Paper
Accounting 541 Version 4
April 15, 2013
The Accounting Standards Boards Paper is covering the current working of the joint venture referring to the convergence project for the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board, (ISAB). Briefly will be covering the history and relationship between the two boards and FASB original pronouncements, and IASB equivalents. Explain how the MSA program prepares the student for a professional life within the accounting vocation.
The two relationship between the FASB and IASB is growing on a continually basis. The FASB and IASB both seek the same task, which constantly keep improvement and regulations of financial reporting. The Accounting Principle Board (APB) is constantly growing in criticism. In 1971, the board of directors of the American Institute of Certified Public Accountant (AICPA) appointed two committees the Wheat and Trueblood. “The Wheat Committee, chaired by Francis Wheat, was to study how financial accounting principles should be established” (Schroeder, Clark & Cathey, 2011, p. 9).
Asked to determine the objective of financial statements is the Trueblood Committee, chaired by Robert Trueblood. Recommending the APB be abolished, the Wheat Committee issued its report in 1972, and the FASB be created. The new board was to comprise representatives from various organizations in contrast to the APB, whose members were from the AICPA. The APB members served part-time and were not paid although the FASB were full-time paid employees.
The Trueblood Committee issued its report in 1973 following substantial debate with considerably more tentativeness in its recommendations about objectives than the Wheat Committee had with the establishment of principles. The IASB began its origination in 2001, formally named the International Accounting Standards Committee. The IASB was...