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Chapter 01
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TO THE NET
1. a. The Mission of the Financial Accounting Standard Board (FASB)
The mission of the FASB is to establish and improve standards of financial
accounting and reporting that foster financial reporting by nongovernmental
entities that provides decision-useful information to investors and other users of
b. Financial Accounting Standards Advisory Council (FASAC)
An Overview
The Financial Accounting Standards Advisory Council, FASAC or “the Council” for
The primary function of FASAC is to advise the Board on issues related to projects
on the Board’s agenda, possible new agenda items, project priorities, procedural
matters that may require the attention of the FASB, and other matters as
The members of FASAC are drawn from the ranks of CEOs, CFOs, senior partners
of public accounting firms, executive directors of professional organizations, and
Carrying Out the Mission
and to keep those principles current.
In conducting its activities, the Board strives to carefully weigh the views of its
constituents, who include all those with an interest in financial reporting, including
users, preparers, and auditors of financial reports. The Council provides an
FASAC’s role is not to reach a consensus or to vote on the issues that it considers
at its meetings. Rather, FASAC operates as a window through which the Board
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Members of FASAC are urged to speak out publicly on matters before the FASB
and also to be supportive of the Board’s process and the principle of private-
sector standard setting. Individual Council members are not expected to agree
Structure of the Organization
FASAC is an operating arm of the financial Accounting Foundation, an
organization that is independent of any other business or professional
The Foundation selects the members of FASAC, including the chairman, and
broadly oversees its operations. The Council comprises approximately 35
members who represent a broad cross section of the Board’s constituency. They
are appointed for a one-year term and are eligible to be reappointed for three
additional one-year terms.
The Process
2. Each student will select a company and obtain a copy of their annual report, 10-K,
3. a. About the IFRS Foundation and the IASB (In Part)
The IFRS Foundation is an independent, not-for-profit private sector organization
working in the public interest. Its principal objectives are:
to develop a single set of high quality, understandable, enforceable and
globally accepted international financial reporting standards (IFRSs) through
its standard-setting body, the IASB;
to promote the use and rigorous application of those standards;
to take account of the financial reporting needs of emerging economies and
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The governance and oversight of the activities undertaken by the IFRS
Foundation and its standard-setting body rests with its Trustees, who are also
b. How we Develop IFRSs
International Financial Reporting Standards (IFRSs) are developed through an
international consultation process, the “due process”, which involves interested
individuals and organizations from around the world.
The due process comprises six stages, with the Trustees having the opportunity
to ensure compliance at various points throughout:
4. a. PCAOB Oversees
The Auditors of Companies to Protect Investors
The PCAOB is a nonprofit corporation established by Congress to oversee the
audits of public companies in order to protect the interests of investors and
further the public interest in the preparation of informative, accurate and
independent audit reports. The PCAOB also oversees the audits of broker-
b. About the PCAOB
The PCAOB is a nonprofit corporation established by Congress to oversee the
audits of public companies in order to protect investors and the public interest by
promoting informative, accurate, and independent audit reports. The PCAOB
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The SEC has oversight authority over the PCAOB, including the approval of the
Board’s rules, standards, and budget.
The Act established funding for PCAOB activities, primarily through annual fees
5. a. COMMON CAREER PATHS
“CPAs and potential CPAs have a variety of career paths from which to choose.
Within public accounting, you can work for any sized firm ranging from a large
or local level. Non-profit organizations and education also offer many diverse
opportunities.
b. Diversity Initiatives
The AICPA provides tools, resources, and information to increase and support
6. a. This will give you the symbol of the company that you selected, the stock price,
and other relevant data.
