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“IASB and FASB: Two Bodies to Formulate Accounting Standards”.
Accounting standards are an older set of standards stating how particular types of transactions and other events should be reflected in financial statements. In the past, international accounting standards (IAS) were issued by the Board of the International Accounting Standards Committee (IASC). Since 2001, the new set of standards has been known as the international financial reporting standards (IFRS) and has been issued by the International Accounting Standards Board (IASB).

1. Historical background of the accounting standards bodies (IASB & FASB):
The United States of America has a huge influence on the accounting standards in use around the world. The USA follows the Financial Accounting Standards Board (FASB), which has many standards that are disseminated by the international accounting standards committees. The rest of the world follows the International Accounting Standards Board (IASB). The IASB is head-quartered in London, England and is an independent and privately-funded accounting standard-setter (International accounting standards, 2010). The board consists of representatives from nine different countries and is designed to achieve convergence in accounting standards around the world (IASB international, 2010). 1.1 Historical background of IASB:
The International Accounting Standards Board was established on April 01, 2001 to replace the International Accounting Standards Committee (IASC). The IASB is expected to develop International Financial Reporting Standards (IFRS), which are accounting standards promulgated after 2001, and to enforce the use of each standard (International accounting standards, 2010). The IASC operated from June of 1973 until April 01, 2001. It was established as a result of an agreement by accountancy bodies in Australia, Canada, France, Germany,…...

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