International Accounting Standards Board (IASB)

Introduction

The International Accounting Standards Board (IASB) is the independent, accounting standard-
setting body of the IFRS Foundation.

The IASB was founded on April 1, 2001, as the successor to the International Accounting
Standards Committee (IASC). It is responsible for developing International Financial Reporting
Standards (IFRS), previously known as International Accounting Standards (IAS) and promoting
the use and application of these standards.

On December 31, 2001, The International Accounting Standards Foundation (IASF) was
incorporated as a tax-exempt organization in the U.S. state of Delaware. On February 6, 2001,
the International Financial Reporting Standards Foundation was also incorporated as a tax-
exempt organization in Delaware. The IFRS Foundation is an independent, not-for-profit
organization. Its primary mission is to develop, in the public interest, a single set of high-quality,
understandable, enforceable and globally accepted International Financial Reporting
Standards (IFRS) based upon clearly articulated principles.

IFRS are developed by the International Accounting Standards Board (IASB), the independent
standard-setting body of the IFRS Foundation. The IASB assumed accounting standard-setting
responsibilities from its predecessor body, the International Accounting Standards
Committee (IASC), on March 1, 2001. This was the culmination of a restructuring based on the
recommendations of the report Recommendations on Shaping IASC for the Future.

The IASB forms part the three-tier structure employed by the IFRS Foundation and is
responsible for setting the IFRS and related technical activities. The IASB is overseen by the
Trustees of the IFRS Foundation, responsible for the organizations governance, the appointment
of IASB members and funding. The IFRS Foundation is publicly accountable to a Monitoring
Board of capital market authorities.

Members
The IASB originally had 13 full-time Board members, each with one vote. They are selected as a
group of experts with a mix of experience of standard-setting, preparing and using accounts, and
academic work. At their January 2009 meeting the Trustees of the Foundation concluded the first
part of the second Constitution Review, announcing the creation of a Monitoring Board and the
expansion of the IASB to 16 members and giving more consideration to the geographical
composition of the IASB.
The IFRS Interpretations Committee has 14 members. Its brief is to provide timely guidance on
issues that arise in practice.
A unanimous vote is not necessary in order for the publication of a Standard, exposure draft, or
final "IFRIC" Interpretation. The Board's 2008 Due Process manual stated that approval by nine
of the members is required.
As of July 2014, the members included:

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

Phillipe Danjou, France, former Arthur Andersen, AMF (Financial Markets Authority of
France)

Martin Edelmann, former Group Reporting at Deutsche Bank AG

Patrick Finnegan, US, formerly of the CFA Institute

Gary Kabureck (US)

Sue Lloyd (New Zealand)

Amaro Luiz de Oliveira Gomes (Brazil)

Takatsugu Ochi (Japan)

Darrel Scott (South Africa)

Mary Tokar (US)

Chungwoo Suh (Korea Republic)

Zhang Wei-Guo, China, former professor in Shanghai, China Acc. Standards Committee
Former IASB members include James J. Leisenring, Robert P. Garnett, Mary Barth, David
Tweedie, Gilbert Glard, Warren McGregor, and Tatsumi Yamada.
Chairmen
On July 1, 2011, Hans Hoogervorst succeeded David Tweedie as Chairman. David Tweedie had
served as the Board's Chairman since its creation in 2001.
Fundings
The IFRS Foundation raises funds for the operation of the IASB. Most contributors are banks
and other companies which use or have an interest in promoting international standards. In 2008,
American companies gave 2.4 million, more than those of any other country. However,
contributions fell in the wake of the financial crisis of 20072010, and a shortfall was reported in
2010.

Financial Accounting Standards Board (FASB)

Introduction
The Financial Accounting Standards Board (FASB) is a private, non-profit
[1]
organization standard setting body whose primary purpose is to establish and
improve generally accepted accounting principles (GAAP) within the United States in the
public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the
organization responsible for setting accounting standards for public companies in the U.S. The
FASB replaced the American Institute of Certified Public Accountants' (AICPA) Accounting
Principles Board (APB) on July 1, 1973.

In 2009 Reuters, the Wall Street Journal, USA Today and others claimed that the FASB
succumbed to "political pressure" and lobbyists and tweaked mark-to-market accounting to
accommodate "banks with toxic assets on their books."

Mission

The FASB's mission is "to establish and improve standards of financial accounting and reporting
that foster financial reporting by nongovernmental entities that provides decision-useful
information to investors and other users of financial reports."

The FASB accomplishes its mission "through a comprehensive and independent process that
encourages broad participation, objectively considers all stakeholder views, and is subject to
oversight by the Financial Accounting Foundation's Board of Trustees."
Description
The FASB is not a governmental body. The SEC has legal authority to establish financial
accounting and reporting standards for publicly held companies under the Securities Exchange
Act of 1934. Throughout its history, however, Commission policy has been to rely on the private
sector for this function to the extent that the private sector demonstrates ability to fulfill the
responsibility in the public interest.
structure
The FASB is part of a structure that is independent of all other business and professional
organizations. Before the present structure was created, financial accounting and reporting
standards were established first by the Committee on Accounting Procedure (19361959) of
the American Institute of Accountants and then by the Accounting Principles Board (195973), a
part of the American Institute of Certified Public Accountants. Pronouncements of those
predecessor bodies remain in force unless amended or superseded by the FASB.[citation needed] The
FASB's structure is very different from its predecessors in many ways. The board consists of
seven full-time members.[13] These members are required to sever all ties to previous firms and
institutions that they may have served prior to joining the FASB. This is to ensure the
impartiality and independence of the FASB. All members are selected by the Financial
Accounting Foundation (FAF). They are appointed for a five-year term and are eligible for one
additional five-year term.[11]The current members are (with current term end dates indicated):[11]

Russell G. Golden, Chairman (current term as chairman expires in 2017; eligible for a 3-
year extension beyond 2017)

James L. Kroeker, Vice Chairman (1st term expires in 2018)

Daryl E. Buck (retiring in 2016)

Thomas J. Linsmeier (2nd term expires June 30, 2016; Christine Ann Botosan was named
as his replacement as of July 1, 2016)

R. Harold Schroeder (2nd term expires in 2020)

Marc A. Siegel (2nd term expires in 2018)

Lawrence W. Smith (2nd term expires in 2017)

In addition to the full-time members, there are approximately 68 staff members. These staff are,
"professionals drawn from public accounting, industry, academe, and government, plus support
personnel.
Independence

In June 2009, FASB was criticized by an advisory panel of investors after making changes
on mark-to-market accounting in response to political pressure. Lobbyists had obtained its
permission for banks to apply a special accounting treatment for toxic assets.

FASB pronouncements
Main article: List of FASB Pronouncements
In order to establish accounting principles, the FASB issues pronouncements publicly, each
addressing general or specific accounting issues. These pronouncements are:

Statements of Financial Accounting Standards

Statements of Financial Accounting Concepts

FASB Interpretations

FASB Technical Bulletins

EITF Abstracts