Preview

International Accounting Standards Board

Good Essays
Open Document
Open Document
650 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
International Accounting Standards Board
International Accounting Standards Board
Dawn Becker
University of Phoenix- ACC440
Mike Raponi
September 5, 2005

International Accounting Standards Board
History
"The International Accounting Standards Board (IASB) was preceded by the Board of the International Accounting Standards Committee (IASC), which operated from 1973 until 2001." http://www.lasb.org/about/history.asp . The International Accounting Standards Board (IASB) was founded on April 1, 2001. Its role is to encourage companies nationwide, that are doing business with the United States, to adopt a set of financial statements that are reliable, accurate and compatible with the rest of the world.

Introduction We live in a rapidly changing and expanding market. World markets have become closely entwined. Foreigners have an interest in American food, music, television, just as Americans have a desire to drive and purchase foreign cars, clothing and other items. As the world economy continues to become globalized, many investment and/or credit decisions must be made based on analysis and interpretation of financial statements; however, there is a lack of uniformity in accounting standards between the different countries. This lack of uniformity has occurred as a result of different legal systems throughout the different countries, as well as different governmental requirements and economic environments. The International Accounting Standards Board was established to formulate and publish international accounting standards that would be used and accepted worldwide. The subsequent paragraphs will identify the progress that has been made along with the Board 's stance on ethics. Many of the established accounting standards are driven by tax or other regulatory needs and are not oriented to the needs of investors. There has been an increase in cross-border access to foreign and capital markets that has fueled the international expansion of many businesses. With this expansion,


References: http://www.ifac.org/Library/SpeechArticle.tmpl Purposes and Effects of Taxation, Retrieved May 16, 2005 from the world wide web: http://www.bambooweb.com/articles/t/a/Tax.html http://www.ncsl.org/programs/fiscal/fpufmain.htm.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Us Accounting Standards vs. International Accounting Standards
    • 1751 Words
    • 8 Pages

    Us Accounting Standards vs. International Accounting Standards

    cultural differences underlying global accounting standards. Journal of Financial Service Professionals, 16-18. Retrieved June 19, 2009 from http://search.ebscohost.com…

    • 1751 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Acctounting
    • 630 Words
    • 3 Pages

    Acctounting

    I think global accounting standards are challenging for accounting professionals today. I think it is important that all participants, especially those who work in integrated world capital markets where the demands are comparability and transparency of financial reporting are used…

    • 630 Words
    • 3 Pages
    Satisfactory 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
  • Powerful Essays

    Merger of the FASB and IASB
    • 2550 Words
    • 8 Pages

    Merger of the FASB and IASB

    The proliferation and evolution of international trading and commerce have not only opened the gateway to international markets for many of the world’s emerging economies, but they have also fostered an unprecedented growth in the number of multinational corporations. Spurred by trade agreements such as the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO), the rapid expansion of global commerce has revealed many inherent obstacles and risks within the international financial structure. Disparate political, ethical, economic, and legal policies have impacted recording standards and are responsible for many inconsistencies in international financial reporting. Domestic accounting standards, collectively referred to as U.S. GAAP, or Generally Accepted Accounting Principles, are set and maintained by the Financial Accounting Standards Board (FASB), while international standards, known as International Financial Reporting Standards (IFRS), are issued by the International Accounting Standards Board (IASB). Citing the detrimental effects of accounting fraud by several large publicly owned firms, the subsequent passage of the Sarbanes-Oxley Act of 2002, and pressure from foreign governments and investors, the IASB and FASB begun work on a collaborative framework intended to merge U.S. GAAP standards with IFRS. The convergence of the two systems will eliminate nuances, rectify internal contradictions, and create a uniform set of standards to be used both domestically and internationally. However, despite its many apparent benefits, the plan has been met with skepticism and objections from some accounting professionals.…

    • 2550 Words
    • 8 Pages
    Powerful 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
  • Best Essays

    Accounting Standard Board Paper 3
    • 1444 Words
    • 6 Pages

    Accounting Standard Board Paper 3

    The IASB and the US FASB have been working together since 2002 to achieve convergence of International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP). A common set of high quality global standards remains a priority of both the IASB and the FASB. The boards shared objective of developing high quality, common accounting standards for use in the world’s capital markets. Both boards believe that a…

    • 1444 Words
    • 6 Pages
    Best Essays
    Read More
  • Better Essays

    Accounting: the Financial Accounting Standards Board (Fasb)
    • 1170 Words
    • 5 Pages

    Accounting: the Financial Accounting Standards Board (Fasb)

    The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public 's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. It was created in 1973, replacing the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certified Public Accountants. The Financial Accounting Standards Board '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."…

    • 1170 Words
    • 5 Pages
    Better 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
  • Good Essays

    Uniform Accounting Standards
    • 796 Words
    • 4 Pages

    Uniform Accounting Standards

    In the last decade, various countries around the globe have shifted towards a uniform accounting standards or the International Financial Reporting Standards (IFRS). The main motive behind this movement is to come up with a global language for accounting which will be comparable and understandable beyond the borders of a nation. As of today about 120 countries require IFRS for domestically listed companies, although only about 90 countries have fully conformed to IFRS . While some argue that it is necessary to have a system of accounting that is clear and transparent to global investors and companies, some others are skeptic about it being efficient. Furthermore, some feel that the costs of implementing IFRS can be too high and hence uniform…

    • 796 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Federal Accounting Standards Advisory Board (FASB)
    • 424 Words
    • 2 Pages

    Federal Accounting Standards Advisory Board (FASB)

    The relatively unknown Federal Accounting Standards Advisory Board (FASAB) is responsible for setting accounting standards for federal entities. Since the GAO began auditing financial statements from a number of large federal agencies in 1997, the importance of FASAB’s standards has become more apparent. Similarly, as corporations transact more international business, the influence of the International Accounting Standards Board (IASB), which sets cross-border standards, has grown. As FASB and the IASB work toward the convergence of their differing standards, the line between U.S. GAAP and a truly global set of accounting principles will blur. To be prepared, CPAs should become familiar with all major standards…

    • 424 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Germany's Current Standards and Practices in Accounting
    • 706 Words
    • 3 Pages

    Germany's Current Standards and Practices in Accounting

    We are on the precipice of a fundamental globalisation step. The important and continued globalisation of investment has led to the development of internationally applicable standards and codes of practice. The international demand for standardised regulatory systems and processes has many benefits; however countries have been largely unwilling to adopt the international standards and codes for various reasons. (Mansfield, 2004)…

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

    International Financial Reporting Standards
    • 498 Words
    • 2 Pages

    International Financial Reporting Standards

    Accounting standards were set by a part-time, volunteer IASC Board that had 13 country members and up to 3 additional organizational members. Each member was generally represented by two "representatives" and one "technical advisor". The individuals came from a wide range of backgrounds – accounting practice, business (particularly multinational businesses), financial analysis, accounting education, and national accounting standard-setting. The Board also had a number of observer members (including representatives of IOSCO, FASB, and the European Commission) who participated in the debate but did not vote.…

    • 498 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    International Accounting Standards
    • 472 Words
    • 2 Pages

    International Accounting Standards

    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.…

    • 472 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Comparison of Gaap and Prc Gaap
    • 875 Words
    • 4 Pages

    Comparison of Gaap and Prc Gaap

    In any financial market, investors and other stakeholders will want to assess the financial position of the company before making decisions concerning that company. In recent years there has been an increased level of convergence in terms of international accounting. Despite this, there are differences in the way accounts prepared dependent upon the country which they take place. For example looking at two companies in the same manufacturing industry; Dell and Hartcourt Companies, Inc. the accounts are prepared under different regimes. Dell is a US computer distributer and hardware manufacturing company and the accounts are prepared according to the Generally Accepted Accounting Principles (GAAP). By comparison, Hartcourt Companies, Inc. is a Chinese distributor of computer hardware based in Shanghai and its accounts are prepared according to the accounting practices of the PRC (People’s Republic of China) GAAP. The International Accounting Standards Committee (IASC) that came into existence in 1973 was the result of accounting bodies from all major companies culminating together with the objective to formulate, publish accounting standards, and procedures relating to the presentation of financial statements. There are a number of differences between these approaches which can result in significant changes in the way accounts presented. It is important that an investor can appreciate these differences and understand how they will impact a company’s performance (Zhang, Lei and Shira, 2007)…

    • 875 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Role and Evolution of Iasb
    • 717 Words
    • 3 Pages

    Role and Evolution of Iasb

    "The role and history of the International Accounting Standards Board, including an examination of the Board 's evolution and stance on ethics issues."…

    • 717 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics