ACC 305 Final - Final The Role of FASB 1 Final The Role of...

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Final: The Role of FASB 1 Final: The Role of FASB ACC305: Intermediate Accounting Instructor Felix Telado November 23, 2015 Final: The Role of FASB
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Final: The Role of FASB 2 The Financial Accounting Standards Board has been used for establishing standards of financial accounting. FASB was established in 1973. Its role is to oversee the preparation of financial reports for non-governmental organizations. The Financial Accounting Standards (FASB) relies on the Securities and Exchange Commission (SEC) to ensure that the financial information being provided is functioning efficiently. In this paper I will provide information on the goals of the Financial Accounting Standards Board (FASB), explain how the FASB benefits non-governmental organizations, and how businesses and stakeholder communities are protected by the FASB. The importance of financial reporting became evident in the 1970’s. An idea to create a foundation that would oversee the accounting authority and so it was created and it was named the Financial Accounting Foundation. In 1973, the FASB was discovered in accordance with the Financial Accounting Foundation (AFA). “In 1973, the FASB was born as the private, not-for- profit organization dedicated to setting the financial accounting standards that collectively.” (fasb.org) The ultimate goal and mission of the FASB is to ensure that all users of financial reports are improving and establishing their financial accounting and reporting standards. The FASB uses the Rules of Procedure, which is open to all stakeholder views. In short, the rules of procedure describe how the FASB operates, the mission of the FASB, the responsibilities of all of the Board members of the FASB, the requirements the FASB have to use when voting and the rules that must be followed regarding public announcements. The Financial Accounting Standards Board currently consists of seven Board members. The Board members are chosen and appointed for a term of five years. After being elected for
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Final: The Role of FASB 3 five years, they are allowed to be reappointed for one additional five-year term. The seven Board members have distinct backgrounds, however, they all share the same concerns and interests in accounting and financial reporting. The FASB Board consists of a Chairman, Vice Chairman and five board members. Currently, the assigned Board members include Russel G. Golden, James L. Kroker, Daryl E. Buck, Thomas J. Linsmeier, R. Harold Schroeder, Marc A. Siegel and Lawrence W.
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