Accounting Standards Board Paper
Accounting has been around for thousands of years. The nineteenth century was influenced by the development of accounting as the development of joint ventures made its way into business companies. Several organizations have merged with other organizations over the years such as the American Institute of Accountants merged in 1937 with American Society of Certified Public Accountants and later replaced its name with American Institute of Certified Public Accountants (AICPA) known as today. Several committees were established by the AICPA to focus deeper on accounting principles. The first committee was known as Committee on Accounting Procedure (CAP), which was followed by the Accounting Principles Board (APB) and replaced by Financial Accounting Standards Board (FASB). Every board issued pronouncements on issues in accounting. These pronouncements have become a primary source of Generally Accepted Accounting Principles (GAAP) for it is a guideline to accounting practices (Cathey, Clark, & Schroeder, 2005).
The FASB was formed because of the Wheat Committee who made recommendations that APB be abolished and FASB created. The difference would be members were from various organizations and to be paid full-time. FASB became known as the official body with the purpose of issuing financial accounting standards and is the US organization that releases Financial Accounting Statements (FAS) and additional accounting pronouncements that make up U.S. GAAP. “The FASB’s mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information (Cathey, Clark, & Schroeder, 2005, p.11).”
In 1973, a private sector, International Accounting Standards Board (IASB) was created for the sole purpose to harmonize international regulations and accounting standards. The IASB standards work to improve procedures...