1. groups that impact Accounting rules
Major players, minor players in US GAAP

2. Major player -- The Securities and Exchange Commission (SEC)
Main Purpose -- Protect investors, run securities market (NYSE, NASDAQ), facilitate capital raising
Legal authority ---to develop accounting rules ,practices for publically traded US corporations
Mandated financial statements --based on professional standards & audited, based on US GAAP
Private sector versus public sector –FASB in US, IASB for international
Enforce rules - Substantial authoritative support for FASB, require audits in compliance with US GAAP
Input -persuasion rather than edict
Feedback -- proposed standards
The public sector group with legal authority in the US to make accounting rules, but more important in that they enforce the rules

3. Major Player -- Financial Accounting Standards Board (FASB)
Rule makers - FASB 1973 to present (APB , CAP )
Membership - 7 well paid (funded by FAF), highly educated, intelligent, experienced, ethical, full-time, diverse members
Rule making process – ID issues, research, issuing invitation to comment, exposure draft, accounting standard, public input, 4 of 7 pass standard (twice in history 5 of 7)
Lots of support – Financial Accounting Standards Advisory Council(FASAC), Emerging Issues task force (EITF), research/technical & administrative staff
Accounting Standards Codification (2009) searchable electronic database all US GAAP– 90+ topics (includes 168 FASB standards)
Accounting Standards Updates replaces statements of financial accounting standards, interpretations, staff positions, technical bulletins, statements of financial accounting concepts, guide for implementation
Private sector rule-making body that SEC usually supports

4. Major Player – International Accounting Standards Board (IASB)
Impacts countries, ruling flexibility, applied differently by country
Pronouncements - International Financial Reporting Standards (IFRS) from IASB, International Financial Reporting Standards Interpretive Guidance (IFRICs) from IFRS Interpretations Committee
Standard process – topic, discussion paper, exposure draft, public input, proposed standard
Voting of 16 members, members from various countries
Financial support -- IFRS foundation over IASB similar to FAF over FASB
Rulings -- IFRS Foundation web site
Joint projects - with FASB to develop common standards
Older rulings – 41 International Accounting Standards (IASs)
Global standard setter

5. FASB seeks public input in its standard setting process
Minor Players
FASB seeks public input in its standard setting process
American Institute of Certified Public Accountants ( AICPA )
American Accounting Association (AAA)
Institute of Management Accountants (IMA)
Various accounting groups seek input to the standard setting process

6. Convergence of FASB and IASB Accounting Standards
Initial SEC time line –bilingual for now, IFRS in , global standards
Impact on US of IFRS – good for investors, international companies, negative for--US contracts, less guidance, some radically different, small company/US only company impact, expense, governance- interpret, apply, enforce
SEC update in 2012– no timeline, convergence by FASB/IASB joint projects
joint projects start in conceptual framework completed, Revenue recognition issued in 2014, exposure draft -- leases, insurance, working on financial instruments