The changing landscape of accounting standards setting

FASB may be the best-known accounting standards setter, but newer bodies are becoming increasingly important within the Generally Accepted Accounted Principles (GAAP) hierarchy. The relatively unknown Federal Accounting Standards Advisory Board (FASAB) is responsible for setting accounting standards for federal entities. Since the General Accounting Office (GAO) began auditing financial statements from a number of large federal agencies in 1997, the importance of FASAB's standards has become more apparent. Similarly, as corporations transact more international business, the influence of the International Accounting Standards Board (IASB), which sets cross-border standards, has grown. As FASB and the IASB work toward convergence of their differing US GAAP and a truly global set of accounting principles will blur. To be prepared, CPAs should become familiar with all major standards setters.