Accounting, Auditing & Taxation

Standards & Interpretation

 

Who Sets Standards?

 

Who Sets Accounting Standards in the U.S. ?

Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector in the U.S. for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants.

 

Securities and Exchange Commission

The Securities and Exchange Commission (SEC) has statutory authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the Commission’s policy has been to rely on the private sector for this function.

Financial Accounting Standards Board (FASB)

The mission of FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors and users of financial information. The FASB develops broad accounting concepts as well as standards for financial reporting. It also provides guidance on implementation of standards, known as Statements of Financial Accounting Standards (SFAS).  For example, 2013 US GAAP Financial Reporting Taxonomy, 2014 US GAAP Financial Reporting Taxonomy.

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Databases for Standards & Interpretation

• Checkpoint Edge

  Provides access to standards and regulations, interpretations, generally accepted practices, and news updates on U.S. and international accounting and auditing requirements. Standards and regulations include those from: FASB, AICPA, SEC, PCAOB, OMB, GASB, GAO, and IASB. Also covers tax cases, codes regulations, IRC publications and other tax documents.

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Standards Issuing Bodies

• AICPA (American Institute of Certified Public Accountants)

  Website has professional and regulatory news, information about membership, examinations, and association publications.

• ASB (Auditing Standards Board)

  (Check under Interest Areas tab) An arm of AICPA, ASB prepares rules rules followed by public accountants in auditing clients’ financial records. Included on their web site are:
  * Statements on Auditing Standards
  * Statements on Standards for Attestation Engagements
  * Statements on Quality Control Standards
  * Exposure Drafts
  * Comment Letters

• FASAB (Federal Accounting Standards Advisory Board)

  FASAB standards are GAAP for federal governmental entities only. The web site provides access to:
  * Statement of financial standards
  * Statement of federal financial concepts
  * Interpretations
  * Exposoure Drafts
  * Technical Bulletins

• FASB (Financial Accounting Standards Board)

  Sets authoritative standards, or original pronouncements, for the US private sector. FASB's web site offers full-text, summary, and status of:
  * FASB pronouncements
  * FASB Interpretations
  * FASB Technical Bulletins
  * Comment Letters
  * Statements of Financial Accounting Standards
  * Statements of Financial Accounting Concepts
  * Emerging Issues Task Force (EITF) abstracts

• GASB (Government Accounting Standards Board)

  GASB standards are authoritative for US state and local governmental entities. Their web site offers summary and status of:
  * GASB pronouncements
  * GASB Statements
  * GASB Concept Statements
  * GASB Interpretations

• PCAOB (Public Company Accounting Oversight Board)

  Formed in 2002 by the Sarbanes-Oxley Act to oversee the audit of public companies that are subject to the securities laws in the preparation of fair and independent audit reports. Available on their web site are:
  * Auditing Standards
  * Interim Standards
  * Proposed and Adopted Standards and Related Rules

• IFAC (International Federation of Accountants)

  Through independent standard-setting boards around the globe, IFAC develops international standards on ethics, auditing and assurance, education, and public sector accounting standards.

• IAASB (International Auditing and Assurance Standards Board)

  An arm of IFAC, sets standards dealing with auditing, review, other assurance, quality control and related services, and facilitates their use nationally and internationally.

• IASB (International Accounting Standards Board)

  The IASB is the independent standard-setting body of the International Financial Reporting Standards Foundation working to develop globally accepted financial reporting standards.

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