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FASB And IASB: Working On Intellectual Property Together

1120 Words5 Pages

Guang Lu
Wenqi Yu
Claudia S Roehl
BUS 201-06
15 May 2015
FASB and IASB: Working on Intellectual Property Together
The two bodies the Financial Accounting Standards Board and the International Accounting Standards Board work together to come up with regulations on accounting practices in a bid to curb the irregularities in the accounting practices by the members. Financial Accounting Standards Board play a role of ensuring that all its members follow the guidelines provided within their doctrines of accounting principles and other regulations that are developed for the growth of the profession. It is the role of the board to ensure that the accounting principle users or practitioners are ethical in their operations and that are they are all …show more content…

These differences between the models of the two bodies is not expected to affect the implementation of licensing greatly, however, it is expected that a section of the licensing procedure may be affected. The other issue that regards the application of royalty and other constraints to it rather than having it split is found to be consistent within the decisions made by the staff of the two boards giving sign of a continued agreement between the two entities. On the issue of materiality of promises made, the Financial Accounting Standards Board took on evaluation of the practicability of contract promises and stated that if any promise is found impractical then that promise may not be evaluated. On the same note the International Accounting Standards Board decided to have a fixed decision on the standards and stayed firm on not evaluating the existing standards on this question. Even though the two bodies had different decisions on the issue, it was not expected that they would be divided based on the same as more clarification was set to be done on the that …show more content…

Further the firm would be allowed to choose a policy that takes account of shipping and handling actions as part of the fulfillment costs if they happen to be non-predominant in the contract and if they occur after the goods and services are transferred to the client. On the other hand the International Accounting Standards Board decided not to make any changes to the regulation as the staff was found to be unclear about the consequences of the issue. Whether the decisions will divide the two bodies is unclear as this is found to be in its early

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