Accounting Standards Boards
Kerry Seeley
ACC 541
September 12, 2011
Dr. Sonja B. Wilson
Accounting Standards Boards
According to Halsey Bullen and Kimberley Crook (2005), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are presently working on a joint project, to reevaluate conceptual frameworks for financial accounting and reporting. Provide a brief history of the relationship between the FASB and IASB. Also how the MSA program prepares the student for a professional career in the accounting world.
The FASB began the development of the accounting “conceptual framework” in the mid-1970s. Between 1978 and 2000, FASB issued seven announcements entitled Statements of Financial Accounting Concepts (SFAC). SFAC intended to prescribe “the objectives and concepts that the FASB will use in developing standards of financial accounting and reporting” (Kaminski & Carpenter, 2011, p. 16, para. 1). The conceptual framework was to be used as a standard in the progress of reliable accounting standards, expectantly leading to a clear set of accounting principles to assist practice. Components of the framework included goals of financial reporting, qualitative qualities of financial information and elements of financial statements, identifying criteria, measurement qualities, financial statements, profits, cash flows, and liquidity (Kaminski & Carpenter, 2011).
This original work considered positively by international spectators and many of its basic concepts motivated the growth of similar frameworks by other accounting standards setters. In 1989, The International Accounting Standards Committee (IASC), the predecessor to the International Accounting Standards Board (IASB), released their description of a conceptual framework titled Framework for the Preparation and Presentation of Financial Statements (Kaminski & Carpenter, 2011). The IASB founded in 2001.
FASB and IASB are in the process of...