What is the difference between IASB and FASB?

The IASB deals with the development of International Financial Reporting Standards and promoting the application of these standards. The FASB is a no-profit organisation, which caters to the development of Generally Accepted Accounting Principles (GAAP) in the interest of the public.

What is the Conceptual Framework of IASB?

The Conceptual Framework states that only items that meet the definition of an asset, a liability or equity are recognised in the statement of financial position and only items that meet the definition of income or expenses are to be recognised in the statement(s) of financial performance.

Why the IASB removed prudence from the Conceptual Framework?

In joint work with the US Financial Accounting Standards Board (FASB), the IASB removed prudence in 2010 because of its conflict with neutrality. This decision was made after long and controversial debates.

What is the difference between IASB and GAAP?

GAAP are the more generic accounting rules that every country holds, and are directly influenced by the different accounting boards of each jurisdiction, whereas, IAS is the specific set of internationally recognized accounting standards, set by the IAS Committee.

Are the FASB and IASB conceptual frameworks fully converged?

Are the FASB and IA SB conceptual frameworks fully converged? Explain. Q2-2 ANSWER: Currently, the FASB and the IASB are working separately on the Conceptual Framework. The two Boards were working together to improve and converge the two frameworks until 2010.

What is the purpose of the FASB Conceptual Framework?

The FASB Conceptual Framework is a theoretical foundation of interrelated objectives, concepts, principles, and definitions that enable the establishment and application of consistent financial accounting standards.

What two assumptions are central to the IASB conceptual framework?

There are two fundamental assumptions underlying the financial statements: Going Concern, and Accruals.

Why is IASB revised conceptual framework?

The IASB decided to revise the Conceptual Framework because some important issues were not covered and some guidance was unclear or out of date.

Why did IASB revised Conceptual Framework?

Why have we revised the Conceptual Framework? In revising the Conceptual Framework, the Board sought a balance between providing high-level concepts and providing enough detail for the Conceptual Framework to be useful to the Board and others.

How Prudence is defined in the IASB Conceptual Framework?

In the current Exposure Draft of a revised Conceptual Framework the IASB proposes to define prudence as follows: 2.18 Neutrality is supported by the exercise of prudence. Prudence is the exercise of caution when making judgements under conditions of uncertainty.

What is difference between IFRS and IASB?

IAS and IFRS are the same. International Accounting Standard Committee issued IAS till 2001. IASB replaced IASC in 2001. IFRS refers to the new numbered series of pronouncements that the IASB is issuing,as distinct from the International Accounting Standards (IASs) series issued by its predecessor.

Which is better IFRS or GAAP?

One of the most significant reasons why IFRS is better than GAAP is its focus on investors. IFRS promises more accurate, timely, and comprehensive financial statements. Similarly, it ensures investors that this information will be relevant to their decisions.