Preview

International Accounting Standards

Better Essays
Open Document
Open Document
1333 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
International Accounting Standards
International Accounting Standards
What is the International Accounting Standards Board? This paper will give a brief overview on the history of the International Accounting Standards, starting with the role of the IASC Foundation, the structure of the IASB and the number of accounting standards currently published. Next, it will explain the steps in creating an international accounting standard in accordance with due process and it will show the mailing address and phone number. Lastly, there will be a summary of two most recent accounting standards issued by the IASB.
By the early 1970’s businesses started expanding globally. With the expansions, companies were finding their financials incomparable to other companies in other countries due to different reporting standards. In 1973 the International Accounting Standards Committee was formed to implement a body of standards, interpretations and conceptual frameworks and other guidance’s that were adopted by companies (Deloitte IAS Plus, 2007).
Starting late in 1997 the IASC formed a Strategy Working Party to re-examine the structure and strategy. After the Party published the report in 1998, there were the discussions and the final report from the Party in November 1999. There was a unanimous vote of approval in December 1999 from the board. In May of 2000, the members of the IASC voted their approval also. On April 1, 2001, the International Accounting Standards Board (IASB) had a new constitution and took over the IASC (Deloitte IAS Plus (2007). The goal of the ISAB is to develop a single set of international accounting standards.
The structure of the new IASB is the IASC Foundation, which consists of 22 trustees that appoint, oversee, and raise funds. They are over the Board, the Standards Advisory Council, and the International Financial Reporting Interpretation Committee. The Board consists of 12 full time and 2 part time people. The Board sets the technical agenda, approve standards, exposure drafts and


References: Deloitte IAS Plus (2007). International Accounting Standards Committee History. Retrieved January 13, 2009, from http://www.iasplus.com/restruct/iaschistory.htm International Accounting Standard Board (n.d.). Develpment and publication of an exposure draft. Retrieved January 14, 2009, from http://www.iasb.org/About+Us/How+we+develop+standards/Development+and+publication+of+an+exposure+draft.htm International Accounting Standards Board (n.d.). Consolidation. Retrieved January 14, 2009, from http://www.iasb.org/Current+Projects/IASB+Projects/Consolidation/Consolidation.htm International Accounting Standards Board (n.d.). Development and publication of a discussion paper. Retrieved January 14, 2009, from http://www.iasb.org/About+Us/How+we+develop+standards/Development+and+publication+of+a+discussion+paper.htm International Accounting Standards Board (n.d.). Development and publication of an IFRS. Retrieved January 14, 2009, from http://www.iasb.org/About+Us/How+we+develop+standards/Development+and+publication+of+an+IFRS.htm International Accounting Standards Board (n.d.). IFRS and IAS Summaries: English. Retrieved January 14, 2009, from http://www.iasb.org/IFRS+Summaries/IFRS+and+IAS+Summaries+English+2008/IFRS+and+IAS+Summaries+English.htm
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Fasb System Orientation
    • 740 Words
    • 3 Pages

    Fasb System Orientation

    References: FASB Accounting Standards Codification. (2012). About the FASB Accounting Standards Codification Research System Website. Retrieved from https://asc.fasb.org/about…

    • 740 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    ACC 541 Week 1
    • 1251 Words
    • 4 Pages

    ACC 541 Week 1

    The International Accounting Standards Committee was formed in 1973. This committee was the first international standard-setting body. In early 2001, this Committee was reorganized and became the the International Accounting Standards Board (IASB) to independently develop and establish a single set of accounting procedures for international business. Since the reorganization of the IASB, the use of these international financial reporting standards (IFRSs) have been required or permitted in over 100 countries, including the European Union ("What Have IASB And FASB Convergence Efforts Achieved?", 2013). The IASB aims to make the entire world follow guidelines for financial reporting to make use and comparability of financial reports more consistent across all geographical areas.…

    • 1251 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Where Does the Us Stand on the Adoption of Ifrs?
    • 1356 Words
    • 6 Pages

    Where Does the Us Stand on the Adoption of Ifrs?

    The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have committed to work together to develop future standards jointly (FASB, 2011). Nonetheless, the key differences will have to be resolved and many believe the FASB will ultimately adopt international standards completely. This report seeks to discuss the US situation on the adoption of IFRS (International Financial Reporting Standards, as prescribed by IASB) and the possible effect of adoption on non-public businesses and the public?…

    • 1356 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Relationship Between Iasb and Fasb
    • 1160 Words
    • 5 Pages

    Relationship Between Iasb and Fasb

    In 1973, the private sector International Accounting Standards Board (IASB) was formed. The IASB is a natural extension of a global market that has been evolving over the last three decades. The IASB formulates and publishes accounting standards to be observed when presenting financial statements and promote their global acceptance. As an overarching mission, the IASB works to improve and harmonize accounting standards, regulations, and procedures as it relates to financial statements. IASB standards provide a reference model and set of examples for financial reporting in developing countries. The IASB has no authority with the Financial Accounting Standards Board (FASB) or the Securities and Exchange Commission (SEC) in the United States at this time. Even though the FASB and SEC are not members of the ISAB, the SEC has ruled formally that public companies that have adopted the IASB standards can list their securities on the United States stock exchanges (Schroeder, Clark, & Cathey, Chapter 1, 2011).…

    • 1160 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Fasb Convergence
    • 1091 Words
    • 5 Pages

    Fasb Convergence

    In 2001, the IASC was replaced by the IASB “(Schroeder, Clark, & Cathey, 2011, p. 82). The IASB wants to formulate and publish accounting standards and to promote them globally. The IASB currently consists of 15 individuals appointed by the trustees. The membership is based on the technical expertise. “On December 17, 2003, the IASB published 13 revised International Accounting Standards (IASs), reissued two others, and gave notice of the withdrawal of its standard on price level accounting. The revised and reissued standards mark the near completion of the IASB’s Improvements Project “(Schroeder, Clark, & Cathey, 2011, p.…

    • 1091 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Adopting Ifrs in Canada
    • 4061 Words
    • 17 Pages

    Adopting Ifrs in Canada

    Canada is on the edge of a substantial change that will change the way companies…

    • 4061 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    ACC Standards
    • 1442 Words
    • 5 Pages

    ACC Standards

    References: Barth, M. (2006). Research, Standard Setting, and Global Financial Reporting. Foundations and Trends in Accounting, 1(2), 71-165. Retrieved from EconLit with Full Text database.…

    • 1442 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    IFRS Vs US GAAp
    • 1493 Words
    • 5 Pages

    IFRS Vs US GAAp

    The International Financial Reporting Standards are issued by the International Accounting Standards Board. These set of accounting standards are international in more than 110 countries and the state how certain transactions and other events should be reported in the preparation of financial statements. This set of standards’ purpose is to make international comparisons easier. This is not an easy task, though, because there is already set rules in every country.…

    • 1493 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    How to Report Earthquake Damages in the Income Statement
    • 695 Words
    • 3 Pages

    How to Report Earthquake Damages in the Income Statement

    Extraordinary items are defined as material events and transactions that are both unusual in nature and infrequent in occurrence (Spiceland 186). Unusual is defined as “unlike what is expected, differing in some way from the norm” (Wiktionary). Infrequent is defined as “seldom happening or occurring, rare” (Merriam-Webster). Materiality means that the loss is significant in comparison to the Net Income or Net Loss (Spiceland 186).…

    • 695 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Fasb Convergence
    • 388 Words
    • 2 Pages

    Fasb Convergence

    “The FASB’s mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information”(Schroeder et al., 2011, p. 9). The International Accounting Standards Board (IASB) which is an independent private sector body; was formed in 1973 for the purpose of simplifying the process of international business’s financial reporting and to harmonize and coordinate the countries engaged in setting accounting standards. “The goal of the FASB’s Short term International Convergence Project is to remove a variety of individual differences between U.S. GAAP and the International Financial Reporting Standards (IFRS) that are not within the scope of other major projects”(Schroeder et al., 2011, p.…

    • 388 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    IFRS vs GAAP
    • 2624 Words
    • 11 Pages

    IFRS vs GAAP

    References: Alfredo, K., Leo, K., Picker, R., Pacter, P., Radford, J., & Wise, V. (2007). iiiiiApplying international financial reporting standards. (pp. 9-32). Australia: John iiiiiWiley and Sons Australia Ltd.…

    • 2624 Words
    • 11 Pages
    Best Essays
    Read More
  • Powerful Essays

    Accounting Standards Boards Paper 4
    • 1448 Words
    • 42 Pages

    Accounting Standards Boards Paper 4

    References: Financial Accounting Standards Board (FASB). 2002a. Proposal: Principles-Based Approach to US Standard Setting. File Reference No. 1125-001. Norwalk, CT: FASB. Retrieved from http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176154526495 Hail, L., Leuz, C., and Wysocki, Peter D., Global Accounting Convergence and the Potential Adoption of IFRS by the United States: An Analysis of Economic and Policy Factors (February 25, 2009). Retrieved from http://www2.lse.ac.uk/accounting/news/MAFG/Leuzpaper.pdf Hinson, Y. (2009) Differences Between IFRS and GAAP Could Create Challenges for Educators. Retrieve from http://www.corporatecomplianceinsights.com/2009/differences-ifrs-gaap-challenges-educators/ Schroeder, R.G., Clark, M. W., & Cathey, J. M., (2005). Financial Accounting Theory and Analysis. 8th edition. John Wiley & Sons, Inc. Whittington, G. (2008). Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6281.2008.00255.x/full…

    • 1448 Words
    • 42 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Internation Writing Assignment
    • 485 Words
    • 2 Pages

    Internation Writing Assignment

    References: Barth, M., Landsman, W., and Lang, M. International Accounting Standards and Accounting Quality. (2006)…

    • 485 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Uniform Accounting Standards
    • 1544 Words
    • 7 Pages

    Uniform Accounting Standards

    Susanne Fritz and Christina Lämmle. (2003). The International Harmonisation Process of Accounting Standards . . 1 (1), 12-19.…

    • 1544 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Accounting Regulatory Agencies
    • 1294 Words
    • 6 Pages

    Accounting Regulatory Agencies

    The Office of the Chief Accountant assists the Commission in executing its responsibility under the securities laws to establish accounting principles, and for overseeing the private sector standards-setting process. The Office works closely with the Financial Accounting Standards Board, to which the SEC has delegated authority for accounting standards setting, as well as the International Accounting Standards Board and the American Institute of Certified Public Accountants. The Office also consults with registrants and auditors on a regular basis regarding the application of accounting and auditing standards and financial disclosure requirements…

    • 1294 Words
    • 6 Pages
    Powerful Essays
    Read More

Related Topics