FASB

FASB

Jeremy Kern

Business Research and Writing: RWT1

Western Governors University

Table of Contents

Introduction4

Research Findings8

Finding Number 19

Finding Number 210

Finding Number 311

Recommendations13

Recommendation One:13

Recommendation Two:13

Recommendation Three:14

Conclusion14

References15

Executive Summary

The purpose of this research report is to explore the functions of Financial Accounting Standards Board (FASB) and its importance to the United States of America (USA). FASB is important in the management and reporting of financial accounts and analysis (Verreault, 1998, 88). In addition, it will link how the private and public sector companies are controlled by the FASB's decisions on the day-to-day running of the companies and reporting of the financial statements. Many scholars, publishers, and professionals have boosted FASB activities by the research conducted (Abbas, et al. 2008, pp. 421).

The managers of various companies can use this information to improve on the management and utilization of resources. This will help in implementation of the recommendations that I will highlight that need to be adjusted depending on whether they are important to the company or not. The report too will specify the functions of the FASB; and how it should understand other nation's accounting standards (Gee, 2006, pp. 345). This is important in ensuring consistency and uniformity in reporting the financial statements across all the companies in the world. It will also talk about the research findings, recommendations, and conclusion (Verreault, 1998, 89).

Introduction

FASB is one of the branches of Financial Accounting Foundation (FAF). It is a non-profit and independent Corporation, which is currently based in Norwalk, Connecticut. FASB has a responsibility for formulating Generally Accepted Accounting Principles (GAAP) governing the private sector. This report is about the function or the role of Financial Accounting Standards Board (FASB) and its implications on public corporations. The manager of the company should understand all the accounting standards because some of them are legally binding (Rodney, et al. 1997, pp. 56). The FASB has tentatively decided that enterprises that have an express business purpose of investing in real estate properties for capital appreciation and whose substantive activities relate to that purpose would have their investment properties carried. Financial statement preparers should keep in mind the purposes of financial reporting in the absence of clear standards-setters' guidance to ensure accounting rules are followed and to lessen the need for additional standards and guidance. (Chatfield, 1977, 54)

The reaction to the new standard is hard to predict. Some fairly high-potheyred corporations had representatives on the FASB task force, a group that included The Dial Corp. general accounting, corporate accounting services, reportedly the chief architect of the two-step methodology for recognition and calculation of a write-off. Even so, there is certain to be testimony in May that FASB has set the recognition hurdle too high. The danger is that some bona fide impairment will not meet the write-off threshold. "This standard will sharply limit the number of write-offs, because that [undiscounted] cash flow is a big number," FASB task force member and, whose research indicates that companies use write-offs for smoothing out reported earnings to shareholders. (Gray, 1983, 261)

History and Background of FASB

The establishment ...