KEY TAKEAWAYS
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Accounting standards are implemented to improve the quality of
financial information reported by companies.
In the United States, the Financial Accounting Standards Board
(FASB) issues generally accepted accounting principles (GAAP).
GAAP is required for all publicly traded companies in the U.S.; it is
also routinely implemented by non-publicly traded companies as
well.
Internationally, the International Accounting Standards Board (IASB)
issues International Financial Reporting Standards (IFRS).
The FASB and the IASB sometimes work together to issue joint
standards on hot-topic issues, but there is no intention for the U.S. to
switch to IFRS in the foreseeable future.