FASB EXCECUTIVE SUMMARY 4
TheFASB is an international organization that is purposed to establishthe financial accounting standards for financial reporting. Since itsformation in 1973, the FASB governed the preparation of the financialreports for private entities and the non-governmental organizations(FASB, 2014). The board has its values purposed on the promotion ofconsistency in the global accounting practice. It is an authoritativebody that has its standards recognized by the Securitiesand Exchange Commission (SEC) among other professional bodies in theworld.
Theboard has the mission of establishing financial accounting standardsand consistently improving them for professional financial reporting.This aims at ensuring that private entities and non-governmentalbodies provide reliable and relevant financial information to theusers of the financial reports. To achieve this mission, the boardadopts a comprehensive process of formulating standards byincorporating the views of all the relevant stakeholders(FASB, 2014). Withthe oversight of a board of trustees, the FASB also follows a set ofrules and procedures. Therefore, the board achieves its objectives byissuing standards that will improve the current accounting practiceor the prevailing standards.
Theachievement of the FASB’s purpose and values is based on its beliefin the international convergence of the accounting practice. As acore value of the board, international convergence is accomplished byissuing similar global accounting standards. The board also promotestheir implementation to be as similar as possible across the globe.This way, the board has consistently accomplished projects that guidestandards issued recently. For instance, the recently updated GoingConcern standards, revenue recognition principle and pensions (FASB,2014). This way, the board has consistently been relevant and centralin the global accounting practice by achieving its mission, purposethrough a set of accounting values.
FinancialAccount Standards Board (FASB), 2014. FinancialAccount Standards Board.Retrieved From, <http://www.fasb.org/home> November 1, 2014