Essay about Fasb

1250 Words Feb 12th, 2015 5 Pages
Part I: Know the FASB
I. As discussed many times in ACC 310, the FASB is the current accounting standard setters in the U.S. as they are empowered by the SEC. Visit the FASB website at and answer the following questions: (Do not cut and paste but answer in your own words. Any material quoted should be cited).

1. What is the FASB mission? 1pts

The FASB mission is to establish and improve financial accounting standards and reporting. This sets the guidance for nongovernmental entities that provide decision-useful information to users. Users include issuers, auditors, and other users of financial information.

2. Who are the current FASB Board members and what are their backgrounds? 2pts
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g. Lawrence W. Smith, Board Member. Mr. Smith worked for 25 years at KPMG as a partner. He also spent 5 years as a Director for FASB for the Technical Application and Implementation Activities.

3. What is one future project that the FASB and IASB are working on together? 2pts

The FASB and IASB are working on numerous projects right now to help complete the convergence mission, which would create a unified set of guidelines for financial accounting statements. One of their projects is the Revenue Recognition Project which is working on improving the financial reporting, by creating a single, principle-based revenue standard.

4. Look up the Accounting Standard Update No. 2013-02. 4pts a. What is the topic?

Accounting Standard Update No. 2013-02 Comprehensive Income (Topic 220). Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.

b. Under “Background Information and Basis for Conclusions” read and discuss BC9.

BC9 discusses accumulate other comprehensive income of cash flow hedges, unrealized gains and losses on available-for-sale securities, and foreign currency translations. FASB didn’t think it would be costly for entities to provide the information that is reclassified to net income in the requirements of this update.

5. Discuss in detail information

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