The International Accounting Standard Committee (IASC) came into existence on June 29 1973 when sixteen accounting bodies from nine nations (designated as founder members) signed the agreement and constitution for its formation with headquarters at London. The objective of the committee is "to formulate and publish in the public interest standards to be observed in the presentation of audited financial statements and to promote their worldwide acceptance and observance". This would facilitate flow and communication of financial information and in turn investment. The International Accounting Standards Committee (IASC) announced in January 1975, the following standards regarding disclosure of fundamental accounting assumptions and policies. Fundamental Accounting Assumptions refer to those accounting standards whose acceptance and use are assumed in the preparation of financial statements. In financial accounting assignments, we have to mention some fundamental accounting assumptions in international accounting. The fundamental accounting assumptions enumerated by the International Accounting Standards Committee are Going concern, Consistency, Accrual. If any of the above accounting assumption is not followed it should be disclosed with reasons. The assumptions already explained are applicable.
International accounting standards is being used as national standards in some developing countries. These standards are also forming the basis of research for national standards. IASC is permitting alternatives in many areas of reporting practice, but the Board of the IASC believes that the time is ripe to reduce the alternatives. As a step in this direction, the Board set up a Special Steering Committee in March 1987 to find ways of reducing or eliminating alternatives. If all the countries follow the policy as being followed in UK, and some other countries that departures from the international standards be disclosed in...
Please join StudyMode to read the full document