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Unit 3: Introduction to US-GAAP

closely with various private organizations setting GAAP, believing that the private sector Notes
had the proper knowledge, resources, and talents, but does not set GAAP itself.
2. American Institute of Certified Public Accountants (AICPA) - SEC urged the AICPA and
in 1939, Committee on Accounting Procedure (CAP) has come into existence. However, it
could not address the growing need for structured body of accounting principles. So, 1959,
the AICPA created the Accounting Principles Board (APB), which also got dissolved in
1973 for lack of productivity and failure to act promptly. So, again the AICPA created
FASB.

3. Financial Accounting Standards Board (FASB) - Realizing the need to reform the APB, a
new structure is composed of three organizations: the Financial Accounting Foundation
(FAF), the Financial Accounting Standards Advisory Council (FASAC), and the major
operating organization in this structure the Financial Accounting Standards Board (FASB).

4. Governmental Accounting Standards Board (GASB) – With structure similar to that of the
FASB, GASB was created in 1984 to the addresses state and local government reporting
issues.



Caselet Statutory Reporting Simplified with IFRS

Abstract
A large global company with more than 100 subsidiaries in 70 countries sought to consolidate
and enhance its statutory reporting processes to reduce complexity, decrease potential
reputational risk, and increase transparency and efficiency of its global finance organization.

The Challenge
With limited visibility into the statutory reporting processes and requirements, the client
was not fully aware of its existing risk exposure at the subsidiary level, or opportunities
to simplify its reporting.

How We Helped
Deloitte worked with the client in conducting an assessment to determine an appropriate
approach for adapting to (and eventually) adopting IFRS as a basis for financial reporting.
The project included the following components:

 A comprehensive evaluation of the “IFRS landscape” facing the company and its
subsidiaries
 An assessment of readiness for an IFRS conversion

Solution
As a result, the client is recognizing improvements in its financial and tax reporting
processes, its treasury processes, and internal controls. In streamlining the global finance
organization, other benefits (including cost savings and opportunities for simplification)
were identified.

Source: http://www.deloitte.com/view/en_US/us/Services/consulting/Strategy-Operations/
7804f75d99efd110VgnVCM100000ba42f00aRCRD.htm

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