Question

In recent years, there has been an ongoing debate in the accounting profession focusing on the quality of the accounting standards issued by the International accounting Standards Board versus those issued by the Financial Accounting Standards Board. Research and briefly explain the key philosophical difference between those two important rule-making bodies that significantly affects the nature of the accounting standards promulgated by each.

Answer 1

International Accounting Standard Board and Financial Accounting Standards Board both are related to accounting and their functions may look similar but still, there are some differences.

IASB deals with the development of international financial reporting standards and promoting the applications of these standards. IASB based in the capital of the united kingdom is an accounting standard-setter. Whereas FASB is based in the united states and it is a no-profit organization, which caters to the development of the Generally Accepted Accounting Principles (GAAP) in the interest of the public.IASB has 16 members on board and each of them having voting power while FASB has 5 full-time members and has other 68 members who are professionals drawn from various fields.

probably the most distinct difference between the two lies in the area of post-implementation of standards.The FASB has no formal process