Acc 541 IASB FASB - The requirements for accounting...

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The requirements for accounting standards are so important for today’s society. Accounting standards are needed so the financial statements will fairly and consistently describe the financial presentation of an association (Quick MBA Accounting, 1997- 2007). The community relies heavily on this in sequence to be dependable and accurate for investing, making credit decisions, and such. Today, we know these standards as GAAP or Generally Accepted Accounting ethics. Bodies in power have set these values and therefore, the standards are generally acknowledged by accounting professions and used widely across the financial system. The Financial Accounting Standard Board (FASB) and International Accounting Standards Boards (ISAB) are extremely important in setting these standards. (University of Phoenix, 2010). Brief History of the ISAB and FASB As a consequence of the growing disapproval of the APB, the board of directors of the American Institute of Certified Public Accountants (AICPA) appointed two committees in 1971, the Wheat Committee and the True blood Committee. The Wheat Committee responsibility was to study how financial accounting principles should be recognized. The True blood Committee was asked to decide the objectives of financial statements. In 1972, the Wheat Committee had issued its report with the recommendation that the APB is abolished and FASB be created. In 1973, the True blood Committee affirmed this decision. The AICPA adopted the recommendation of the Wheat Committee and FASB has been the designated organization in the private division for establishing standards of financial accounting. Those standards govern the preparation of financial statements (University of Phoenix, 2005). They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) and the American Institute of Certified (McEnroe, 2006). The duty of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including
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Acc 541 IASB FASB - The requirements for accounting...

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