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Norwalk Agreement Essay

708 words - 3 pages

Question 1:
The IASB-FASB Norwalk agreement was initiated in September 2002, where the FASB and the IASB acknowledged their commitment to the development of excellent accounting standards that could be used for both domestic and cross-border financial reporting (FASB, 2008). The IASB and FASB decided that the Norwalk Agreement would make the existing financial reporting standards fully compatible, coordinate the future work programs and undertake short-term project aimed at removing differences between U.S. GAAP and IFR’s (FASB, 2008). The meeting had both the IASB and FASB agree to establish broad tactics. The main goal of the Norwalk agreement was to eliminate any differences in ...view middle of the document...

If users are only given partial information and material data and facts are left out the statements are no longer reliable (FASB, 2008). Also, the information must have comparability. The users must be able to relate the information to other pieces of information. With comparability, users are able to make better decisions by comparing the similar and differences within the company. Consistency is an important factor when dealing with comparability of information contained within the financial statements and records of a company (FASB, 2008). If a company is continuously changing the accounting method that the company is using there will be no way to compare different years to each other. When a company changes their accounting methods, they must disclose this in the notes of the financial statements so users know the effects of the change that occurred (FASB, 2008).

Question 3:

The MSA program helps to prepare students for a professional life within the accounting vocation because the program lays out what accounting is, how it is prepared, where it began, and all information regarding accounting. Students who have little experience in accounting feel relieved when entering this Master’s program because all the details are covered. Each class helps to prepare the students...

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