StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The SEC's Condorsement Proposal - Research Paper Example

Cite this document
Summary
The SEC’s “Condorsement” Proposal  Table of Contents Introduction 3 3 IASB & FASB and Their Relationship with Each Other 3 Evaluation of the SEC Condorsement Proposal 4 References 7 Introduction In the year 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) agreed to eliminate the various differences and unite their standards in the ‘Norwalk agreement’…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
The SECs Condorsement Proposal
Read Text Preview

Extract of sample "The SEC's Condorsement Proposal"

Download file to see previous pages

In this study, I would discuss about the IASB as well as the FASB and their relationship with each other. I would then evaluate the SEC proposal and express my opinions about the same. IASB & FASB and Their Relationship with Each Other In year 1973, the International Accounting Standards Committee (IASC) was set up for the purpose of maintaining standardization in the accounting principles all over the world. In 2001, the International Accounting Standards Board (IASB) was constituted subsequent to the restructuring of the IASC.

The main goal of the IASB was to prepare and issue standards to be observed in the development of financial statements and also to encourage the global recognition and adherence of those standards. The IASB had hitherto issued various standards known as the International Financial Reporting Standards (IFRS) on different accounting subjects (Deloitte, 2011). The Financial Accounting Standards Board (FASB) was formed in 1972, as a nominated institute in the private sector for setting up standards of financial accounting as well as reporting in the USA.

The local firms in the United States that are listed with the Securities Exchange Commission (SEC) are required to file their financial reports exercising the Generally Accepted Accounting Principles of the United States (US GAAP) (Financial Accounting Standards Board, n.d.). The FASB and the IASB are fundamentally built under the same theoretical framework. Nevertheless, there are certain major dissimilarities between the standards issued by the IFRS and the US GAAP. The IASB standards are broader and have restricted interpretive assistance for their implementation, as compared to those of the US GAAP.

The IASB does not usually issue interpretations of the IFRS, and rather lets the International Financial Reporting Interpretations Committee (IFRIC) and the individual auditors to put into practice the principles embodied in the IFRSs. While the US GAAP standards, as a result of the strong legal and regulatory surroundings in the US, have a more prescriptive policy. Consequently, the US standards enclose the underlying principles, complete implementation direction as well as the industry interpretations (Ernst & Young, 2010).

Evaluation of the SEC Condorsement Proposal The Condorsement Proposal made by the Securities Exchange Commission (SEC) is a combination of the convergence approach and the endorsement approach for the amalgamation of the IFRS with the US GAAP. The condorsement framework summarized by the SEC consists of three phases of convergence and an ongoing process of endorsement where the FASB assesses the necessary and appropriate modifications in the IFRS for utilization by the US companies. The first phase of convergence consists of the completion of the projects under their Memorandum of Understanding (MoU) by 2011.

In the subsequent two phases the FASB would devise arrangements to amalgamate dynamic IFRS schemes into the US GAAP and also merge all the other IFRSs into the US GAAP, in a period of 5-7 years (Lamoreaux, 2011). I think that the condorsement approach is significant because such an exclusive hybrid approach would probably lessen the tension on the financial reporting method. The condorsement strategy necessitates the classification of the current US GAAP standards into various

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The SEC's Condorsement Proposal Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
The SEC's Condorsement Proposal Research Paper Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/finance-accounting/1431585-the-secyies-ypcondorsementy-proposal
(The SEC'S Condorsement Proposal Research Paper Example | Topics and Well Written Essays - 750 Words)
The SEC'S Condorsement Proposal Research Paper Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/finance-accounting/1431585-the-secyies-ypcondorsementy-proposal.
“The SEC'S Condorsement Proposal Research Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/finance-accounting/1431585-the-secyies-ypcondorsementy-proposal.
  • Cited: 0 times

CHECK THESE SAMPLES OF The SEC's Condorsement Proposal

Study proposal

In relation to the continuously increasing economic growth in China, Hutzler (2011) reported that the fashion market in China could increase up to three times its current market size over the next 10 years.... Today, a lot of Chinese people are becoming conscious with the brand of… Therefore, examining the impact of economic growth in China to the presence of luxury fashion market in this particular country can benefit the sellers of high-end brands such as CD, Louis Vuitton, etc....
1 Pages (250 words) Research Proposal

Sam's Club Trainin & Development Proposal

The training of employees should take place after the employees are taken through orientation to enlighten them better on customer assistance services (Kamin, 2008).... Being an important aspect in an organization, training will mold the thinking of Sam's Club employees.... Wentland… Sam's club training of will revolve around for basic grounds (2007): Few errors- employees make fewer errors because of training....
1 Pages (250 words) Research Proposal

Generation 3 Polyline Dendron Gene Delivery Vector

In the modern day, genetic medicine plays a crucial role in the treatment of a wide array of diseases such as cancer, Alzheimer's and other chronics.... Similarly gene therapy and gene delivery have a crucial role to play in the present day medical science.... However, a lot of… Thus, the scientific community has been researching the use of dendrons for various biological applications including gene delivery and These agents are known to possess a wide variety of applications, which can facilitate various non-viral systems for the introduction of DNA into the host body and enable easy and effective genetic therapy for the cure of dreaded diseases such as cancer....
9 Pages (2250 words) Research Proposal

Variations of Womens Phenylthiocarbamide

Specifically the main purpose of this laboratory proposal is to analyse the PTC threshold of my female classmates.... Specifically the phenylthiocarbamide (PTC) is actually a synthetic chemical which serve as one of the main ligands for the genes of bitter taste receptor found in various chromosomes (Fareed, Shah & Hussain,… It is given that each person has different taste sensitivity because of gender differences (Fareed, Shah & Hussain, 2012; Bartoshuk, Duffy & Miller, 1994), genetic variations (Prutkin, Fisher & Etter, 2000), the presence of oral diseases, and ageing Variations among Women's Phenylthiocarbamide (PTC) Taste Threshold Introduction Tastes are generally ified as bitter, sweet, sour, and salty....
2 Pages (500 words) Thesis Proposal

Going Green with Stagecoach

The yingying Chen B00637670 MGMT1702 proposal Going Green with Stagecoach Summary Stagecoach Company concentrates on road transportation since it's the core and heart of its business.... This has been achieved by using strategies that help in reduction of carbon emission.... The company modernizes their vehicle and other modes of transportation ensuring that they… Old vehicles are replaced by new vehicles as the company has come up with new technology that ensures vehicles are efficient (Daily, 1997). Stagecoach Company controls damage that may be caused by carbon dioxide through replacement of old cars....
1 Pages (250 words) Research Proposal

Proposal: To Develop Database Application

This calls… The proposed provide precise information to simplify the decision-making course for post-secondary schooling for college students, high school students, and adult Research proposal Foundation College Department Introduction Problem Definition: At the moment, when in Oman finish high school, they lack information concerning the local university to join and the degree programs available for selection....
1 Pages (250 words) Research Proposal

Laboratory Preparation of Paint Using Copper Carbonate as the Pigment

Most binders are polymeric in nature and are either suspended or Project proposal 10 March Laboratory Preparation of Paint Using Copper Carbonate as the Pigment 1 Introduction Paint is defined as a liquid colloidal suspension that converts to a solid film after its application to a substrate (Schuerman George and Bruzan Raymond 327)....
2 Pages (500 words) Research Proposal

Pigments Forms as an Important Component of Paint

There are synthetic pigments that are proposal Background Pigments forms an important component of paint.... It does the specific function of giving color to paint.... Pigment is among the four essential components of paint.... It joins the rest of the factors to provide color.... Second, pigment is responsible for opacity....
1 Pages (250 words) Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us