Question

Accounting History and FASB Codification 1. Why accounting students should know something about the history and development of accounting standards? Explain. 2. Is the accounting profession responded in a timely, comprehensive and effective manner to stakeholders and business current challenges? Explain 3. Explain some of the major challenges financial accountants are facing today. Can these challenges have an effect in the accounting professionals' ethical decisions?

Answer 1

The knowledge about the history and the development of the accouting standards helps the users to better understand the various accounting policies and standards. It helps the students to know whether why the different accouting principles are applied and the reason behind their application.

The students will come across the various problems the business have incurred in the maintenance of the books due to lack of a particular standard. The importance of the various standards and the impact of the non application can be understand by the students once they are aware about the history of the accouting standards.

Also they will be able to analyze the role of the various accounting bodies in the preparation and development of the accouting standards.

Historically the standards were prescribed by the securities and. Exchange commission to maintain the consistency in the reporting. They got evolved through various bodies such as FASB IASB and presented as the accouting standards as we are applying today.