AIS 301 Case I F2011 - Accounting 301 701 Case I(updated...

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Accounting 301 / 701 - Case I (updated 9/12/11) Due: Monday, Oct. 3 (Tierney/Winter)/ Tuesday, Oct. 4th (Fuhremann/O’Brien) / Compare FASB and IASB Standard Setting Background The quality of financial information companies provide is vital to the confidence of investors in making capital allocation decisions. In the United States, the Securities and Exchange Commission has legal responsibility for setting accounting standards for reports of publicly traded companies but they currently rely on the Financial Accounting Standards Board (FASB) to develop those standards. The FASB has been working closely with the International Accounting Standards Board (IASB) to raise the quality of financial reporting standards in both the U.S. and around the world. As the move to converge U.S. standards with international standards continues, the oversight, control, independence, funding, transparency, and participation in the standard setting process become critical issues in the discussion of the efficacy of standards setting. In the past few months, the SEC staff has explored and written about a possible “endorsement” approach for incorporating IFRS into the U.S. financial reporting system; a transitional approach to standard setting involving the FASB endorsing IASB standards during a period of convergence. Quoting James L. Kroeker, Chief Accountant at the SEC, in a speech to the American Accounting Association in August 2009, (www.sec.gov/news/speech/2009/spch120709jlk.htm ) “Perhaps as important as the resulting accounting standards is the process by which those standards are developed. Accounting standards must be established through an independent (in both fact and appearance) and transparent process — one in which the standard setter seeks and considers input from all constituents openly, but also one in which the standard setter is then allowed to independently exercise its expert judgment.” Your Role Assume that you are an intern for a large U.S. public accounting firm with international offices, we’ll
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This note was uploaded on 01/23/2012 for the course ACCOUNTING 301 at University of Wisconsin.

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AIS 301 Case I F2011 - Accounting 301 701 Case I(updated...

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