Accounting_Standards_Board

Accounting Standards Board The United States Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are two organizations focused on the standardization of accounting practices in the United States and internationally. Both boards offer insight and review into accounting practices and principles used in today’s financial environment, but they also differ in many ways leading to confusion or redundancy throughout industries. Since 2002, the FASB and the IASB have been working together toward the convergence of global accounting standards but have received pressure from international groups since the conception of the IASB in the early 1970s (FASB, n.d). According to the FASB - FASB (n.d). “Today, the path toward that goal is the collaborative efforts of the FASB and the International Accounting Standards Board (IASB) to both improve United States generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) and eliminate the differences between them.” Even though the FASB and IASB may present the criteria for specific accounting applications, they both take a different approach, which sometimes results in overlap or inconsistencies. Each standards board has its own principles used in its issued pronouncements. The FASB issues its standards and interpretations through the Generally Accepted Accounting Principles (GAAP) whereas the IASBs pronouncements are issued through IFRS. According to Deloitte - IAS Plus (2010) “IFRS refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IAS.” The Security and Exchange Committee (SEC), regulatory body of the United States, overseeing the financial activity of United States corporations want to see a convergence of the two boards. The SEC, which relies on standards of the FASB for accurately represented financial statements of corporations that it regulates has issued a statement of support in February 2010. The statement outlines its current position with regard to global accounting standards and directs SEC staff to develop and execute a work plan. It also makes clear that the SEC believes a single set of high-quality, globally accepted accounting standards would benefit United States investors (FASB, n.d). This is a very challenging issue the accounting industry faces and has for many years. The importance of having a standardized system in today’s international marketplace is key to providing reliable information to investors and stakeholders. The FASB and the IASB have taken huge strides in recent years to try and close the gap of diversified accounting standards. With continued dedication between these two boards, the next few years could be great turning stones for the accounting industry worldwide. It will be imperative that future accountants are prepared to enter an accounting vocation with the necessary knowledge to function in a worldwide marketplace requiring exceptional accounting knowledge. MSA Career Preparation The MSA program at University of Phoenix, among other schools, prepares students for a career in accounting through a variety of measures. Many of the focuses of the MSA program revolve around accounting principles and practices. These often focus on accounting theory, accounting methods as well as aspects of reviewing and preparing financial statements. The MSA program also prepares students for the CPA examination; the professional certification for public accountants. As a student seeking real-world preparation in accounting, the MSA program provides a firm foundation of accounting knowledge. The MSA is an additional step beyond a Bachelor’s degree offering expertise in the field of accounting. The basic skills of accounting must be precise in the real world and these skills are honed throughout the MSA program. Standards, regulations and procedures are also elaborated on further throughout the MSA program giving students more expertise and familiarity in their field. The CPA examination is a difficult and comprehensive accounting examination. Students with a strong understanding of accounting principles are not prepared for this examination upon graduating with a Bachelors or equivalent degree. The MSA in many institutions provide students with the proper training and study preparation to excel at this four-part examination. Through the extensive exposure to course material, examination software, accounting theories, tax preparation and additional fundamentals, the MSA is a great start to any accounting career. With the ever-changing accounting standards and the possible convergence of the FASB and the IASB, it is crucial that both students and faculty in the MSA program are prepared with the most recent tools to succeed. Instructors at many institutions are aware of this impending convergence of the FASB and IASB and have structured their courses accordingly. This provides one more example about why continued education in a graduate program like the MSA will prepare students for a successful vocation in the accounting industry. Though the MSA seeks to provide mastery in the subject of accounting, the student is link to success. Any graduate program can provide tools, faculty and opportunity, but if the student is not ready to accept the challenge of a graduate level degree, then the burden of failure falls on the student. The University of Phoenix attempts to facilitate an environment where such a degree as a MSA is more easily attainable. Real-world experience is a key factor in preparing students for an accounting vocation. If a student can maintain work experience while completing their degree, it is much more likely that the student will be better prepared than if there was no work experience involved. With this I see the benefit of an online MSA program. References IASB and FASB publish joint proposals, move closer to alignment. August-Sept 2005 v79 i5 p8(1)CMA Management, 79, 5. p.8(1). FASB. (n.d). International Convergence of Accounting Standards—A Brief History. From http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156304264&pid=117615624 5663  Deloitte - IAS Plus. (2010). Summaries of International Financial Reporting Standards. Retrieved from http://www.iasplus.com/standard/standard.htm