Understanding the FASB and IASB

Understanding the FASB and IASB
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Understanding the FASB and IASB
It is important to decipher the meaning of the acronyms that describe the organization along with their origins to understand FASB and IASB. Conversely, IASB represents the International Accounting Standards Board while the FASB denotes Financial Accounting criterions Board. IASB which was founded in 2001 had its initial role in replacing the IASC which then dealt with set up of the IAS- International Accounting Criterions (Cellucci, n.d). Therefore, IASB took on the responsibilities of its forerunner that included the publication of guidelines IAS. The published guidelines contribute to fiscal statement presentation to advance credence and global observation for the synchronisation of the accounting criterions and processes within the fiscal statements.
On the other hand, FASB is a 1973 private non-for net income organization whose mandate is to develop the generally accepted accounting principles (GAAP) (Cellucci, n.d). Therefore, the FASB with its capability to amend or suspend predecessor’s organic structure contributes to the inadvertence of the Financial Accounting Foundation which selects the FASB members in addition to the Accounting standard board for the government along with financing both establishments (Gallistel et al., 2012).
With the capabilities of the two entities in addition to their interaction in different capacities, the Norwalk Agreement of 2002 set up the foundation for the two entities to work together in concentrating on singular distinctions between the United States, the GAAP along with the IFRS (Gallistel et al.

, 2012). Additionally, under the supervision of FASB, IASB undertakes different measures in making new guidelines with relevance to the organizations of interest that include U.S. GAAP and IFRS. The outcome of the integration of operations includes working suitably and a high-quality planetary criterion for accounting.
References
Cellucci, R., (n.d). The International Accounting Standards Board. The Pennsylvania State University, page 15-27, Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.392.9765&rep=rep1&type=pdf
Gallistel, D., Phan, T., Bartlett, G. & Dodd, J. (2012). IASB & FASB Convergence Project Revenue Recognition. Drake Management Review, Volume 2, Issue 1, October 2012 Retrieved from http://faculty.cbpa.drake.edu/dmr/0201/DMR020106R.pdf