International Financial Reporting Standards

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  • Topic: International Financial Reporting Standards, International Accounting Standards Board, Financial statements
  • Pages : 2 (498 words )
  • Download(s) : 68
  • Published : November 29, 2011
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A. The main purpose is to of the (IASB) develop and issue International Financial Reporting Standards and Exposure Drafts, and Approve Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC).

B. How is the IASB made up

IASB is originally made up of 14 members from different countries with experience covering wide areas of accounting and business.

The objectives of the ISAB are:
(a) to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the world's capital markets and other users make economic decisions; (b) to promote the use and rigorous application of those standards; (c) in fulfilling the objectives associated with (a) and (b), to take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies; and (d) to bring about convergence of national accounting standards and International Accounting Standards and International Financial Reporting Standards to high quality solutions.

Structure of ISAB
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.

C. The standard setting process
1. ask the staff to identify and review the issues associated with the topic and to consider the...
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