FASB & IASB

Question 1

FASB (Financial Accounting Standards Board)

Answer 1

establishes standards of financial accounting that govern the preparation of financial reports by nongovernmental organizations

recognized by SEC and AICPA

Question 2

ASC (Accounting Standards Codification)

Answer 2

single source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities

Question 3

FASBS operating procedures

Answer 3

The due process activities that are to be open to public participation or observation to provide transparency into the standards-setting process

Question 4

Process for issuing new accounting standards update

Answer 4

1. The Board identified financial reporting issues based on requests/recommendations
2. Decides whether to add project
3. Deliberates at one or more public meetings
4. Issues Exposure Draft and may issue Discussion paper to obtain input
5. Holds public round table
6. Analyzes comment letters, public round table discussions
7. Deliberates the proposed provision at public meeting
8. Board issues ASU describing the amendments to the Codification

Question 5

IASB (International Accounting Standards Board)

Answer 5

independent, not-for-profit, private-sector organization
Its principal objectives are:
- to develop single set of high quality, understandable, enforceable, and globally accepted IFRS
- to bring about convergence of national accounting standards and IFRS

Question 6

IASB develops what

Answer 6

International Financial Reporting Standards (IFRS)

Question 7

Difference in GAAP vs. IFRS

Answer 7

GAAP is rules based and IFRS is principles-based
SEC allows foreign companies that trade shares in US. markets to file their IFRS FS without reconciliation to GAAP

Question 8

Most authoritative accounting pronouncements?

Answer 8

Accounting Standards Codification