Difference Between IASB and FASB Standards

IASB (International Accounting Standards Board) and FASB (Financial Accounting Standards Board) are two completely different bodies which work in the field of accounting and develop certain standards which should be followed by the firms and companies around the world to make their financial statements. In addition, there is a considerable difference in the operations of the two bodies.

IASB is based in London, United Kingdom whereas FABS is based in the United States of America. Furthermore, IASB promotes the application of accounting standards developed for the financial reporting. In contrast, FASB develops generally accepted accounting principles for the public interest.

Instructions

  • 1

    IASB

    It was established on April 1, 2001 and succeeded IASC (International Accounting Standards Committee). It is a body of the IFRS Foundation (based in United Kingdom) which works independently. The main purpose of this body is to develop accounting standards and to promote the application and use of the standards.

    There are 14 board members of IASB and each member has a right to cast one vote. Moreover, 2 out of 14 members work part time whereas the remaining 12 are permanent members. The members (as of July, 2011) include the following persons:
    - Hans Hoogervorst (Chairman), Netherlands, former Minister of Health, Minister of Finance
    - Ian Mackintosh (Vice-chairman), New Zealand, former Coopers & Lybrand, Chief Accountant Australian Securities and Investments Commission
    - Stephen Cooper, UK, UBS Investment Research
    - Prabhakar Kalavacherla (‘PK’) (was an audit partner at KPMG LLP in the San Francisco office[7] )
    - Dr Elke König (Germany)
    - Patricia McConnell, USA, formerly of Bear Stearns
    - Takatsugu Ochi (Japan)
    - Phillipe Danjou, France, former Arthur Andersen, AMF (Financial Markets Authority of France)
    - Jan Engström, Sweden, former Volvo Group
    - Patrick Finnegan, USA, formerly of the CFA Institute
    - Amaro Luiz de Oliveira Gomes
    - Paul Pacter (US)
    - Darrel Scott (South Africa)
    - John T. Smith, USA, former Deloitte, FASB
    - Zhang Wei-Guo, China, former Professor in Shanghai, China Acc. Standards Committee
    - Image courtesy: enercorp.net

  • 2

    FASB

    It is a private and not-for-profit organisation which develops GAAP (generally accepted accounting principles). It works in the United States of America and sets accounting standards for the public limited companies. The function of setting the accounting standards for public companies has been designated by SEC (Securities and Exchange Commission).

    Moreover, it was founded in 1973 as a replacement of CAP (Committee on Accounting Procedure) and APB (Accounting Principles Board). Its present members include the following people:

    - Leslie F. Seidman, Chairman (2013)

    - Daryl E. Buck (2015)

    - Marc A. Siegel (2013)

    - Russell G. Golden (2012)

    - Thomas J. Linsmeier (2016)

    - R. Harold Schroeder (2015)

    - Lawrence W. Smith (2012)

    - Image courtesy: betterworldbooks.com

Leave a Reply

Your email address will not be published. Required fields are marked *


+ 8 = ten