Was the IASC successful? Explain your reasoning.
IASC had two declared aims:
• Issuing standards
• Promotion and observation of standard
If evaluate the IASC success in issuing of standard then we can see that they published forty one standards and other publications including a conceptual frame work. In this area they have noticeable achievement.
If we look into the IASC’s another objective of promoting and observing of standard then success varies from country to country. the IASC was mainly successful in developing countries like Nigeria, Malaysia and Singapore where these countries adopted IASC standard almost entirely. The ISAC was also successful in commonwealth countries. Former communist countries and China followed the IASC to repair their accounting practices.
Continental western European countries and Japan had mixed feelings against the IASC. But the gradually accepted many ideas of the IASC. On the other hand capital market countries like UK, US, Canada etc by and large tried to influence the IASC rather then adopting them.
Mckinnon and Jannel (1984) observe that the ISAC was not successful in changing original rules or setting new standards. The large number of countries’ national rules is not compatible with the IAS according to a survey of the conformity with IAS in 2001 (Nobes, 2001). So in accomplishing second objective ‘promotion and observation of standard’ the IASC was not completely successful.
4.2 which partied stand to gain from the international harmonization of accounting? What are they doing to achieve it?
Parties would gain from international harmonization of accounting are:
• International investors and financial analysts
• Multinational companies
• International creditors like World Bank
• Financial accountants
• International accountancy firms
• Government and tax authorities
Investors and companies are helping international harmonization of...