The Pros And Cons Of The FASB

796 Words4 Pages
Business dictionary defines FASB (Financial Accounting Standards Board) as, “Independent, US body responsible for establishing and interpreting the GAAP mainly for use in the United States. Its accounting standards, generally speaking, result in greater transparency and ease of analysis of a firm's finances than the accounting standards of several other countries. The comparable UK body is Accounting Standards Board (ASB).” Moreover, the major principle of the formation of the FASB is to establish recording guidelines for financial transactions and explanations, to improve lawful publication of financial duty and the outcome of the entities. Created in the year of 1972, Financial Accounting Standards Board is not a body of the government,…show more content…
This group has the talent for overseeing the business of keeping financial accounts in the United States. Providing a variety of assistance such as advising individuals on tax services, audit issues, and accounting procedures in the U.S. are a few duties assigned to CPA’s. The American Institute of Certified Public Accountants is responsible for governing the actions and work ethics of the CPA’s. The American Institute of Certified Public Accountants is also responsible for the development of the different standards of auditing and making sure that these standards are enforced in the audit of the exclusive…show more content…
The goal of this board is to create International Financial Reporting Standards also known as the IFRS. Accepted globally by big standards, the IFRS exercise and promote uniformity accounting practices and help ease the progress of moving capital. The FASB, AICPA, SEC, PCAOB, and the IASB are related because they all have the same goal of safeguarding the interest of the earnings of investors and other individual shareholders by providing more clarification in the financial data summarizing process. The SEC relationship with the FASB is the transferring of their obligations of to public companies of setting financial reporting guidelines. The relationship between FASB and AICPA is that the guideline setting board of FASB took the place of AICPA and the AICPA members are now accountable for overseeing the guidelines provided by FASB adhere to the financial data reports affirmed by them. The member who establish the IASB has the responsibility of making sure that the AICPA recognize that IFRS are being put into action in the U.S. and there is a union among the USGAAP and the IFRS. The essential function of the PCAOB is to manage the groups of the AICPA in setting the guidelines provided by the FASB as given the go ahead to by the SEC. Reading this week’s scriptures and from my personal belief, I feel that it is important financial reports are fair and should not report data that is

    More about The Pros And Cons Of The FASB

      Open Document