Embracing Globalism

The International Accounting Standards Board (IASB) was formed in an attempt to bring uniform accounting standards within international countries through its issuing of the International Financial Reporting Standards (IFRS). Today, over 100 countries including Canada, India, and Japan have adopted these standards for financial reporting. The growth of multinational companies such as Coca Cola and the increasing desire of cross-border investing have made it apparent that the U.S.accounting standards known as the Generally Accepted Accounting Principles (GAAP) issued by the Financial Accounting Standards Board (FASB) can no longer remain separate from IFRS. Under the request of the Securities and

As stated earlier, the IASB arose from specific needs of the accounting industry and the public. As international trade has increased, the need for transnational accounting information has increased as well. This sparked the demand for development of international accounting standards to make financial data between countries more comparable. In 1973, the International Accounting Standards Committee (IASC) was formed to develop these international standards. The standards issued by the IASC, prior to 2001, were called International Accounting Standards (IASs). In 2001, the IASC made the International Accounting Standards Board (IASB) the official international standard-setting body. The standards issued by the IASB are called International Financial Reporting Standards (IFRSs) (Schroeder, Clark, & Cathey, 2011, p. 82-87).

For nearly half a century, a movement has been underway to establish a high-quality, comprehensive set of international accounting standards, with the goal of facilitating international trade and investment. In the global capital market, differences in the rules of accounting for the purposes of recognition, measurement, and reporting of financial results have impaired the smooth transfer of information across borders. Given that it accounts for nearly a third of the global market, there is considerable pressure for the United States to conform to the International Financial Reporting Standards (IFRS), as promulgated by the International Accounting Standards Board (IASB). While moving to a single set of accounting standards could create

Regardless of the cultural differences and setbacks of the convergence project, it was not all in vain. The project itself opened communications worldwide and had an active impact on U.S GAAP and International IFRS. From this open disclosure about standards, the boards were able to settle on many different comparable standards and added these to the existing rules from both sides. Given all of the differences in culture with regard to accounting, the ability to apply new standards that were established together is an incredible achievement in and of

Although, many authors write about these huge incidents in America, few are discussed about the scandals abroad. Other countries (Switzerland, Italy, Greece and others) also have their issues with frauds and scandals, just not as wide spread. Therefore, the International Accounting Standards Board (IASB) seek to implement a single global accounting standard, called the International Financial Reporting Standards (IFRS) (Street, 2012). The IASB was actually established during the 1970s to promote a worldwide acceptance of regulations, accounting standards and procedures (Schroeder et al, 2011). In 2002, the FASB and IASB agreed that there is a need for an international reporting standard. Due to the high volume of international trade and foreign operations, the two boards, decided that there should be one global approach to accounting standards (Zeff,

The IFRS were introduced in 2001 when the International Accounting Standards Board (IASB) took over from the old International Accounting Standards Committee (IASC). The move to these standards have been part of a movement for accounting which has seen a lot of countries change the way they go about their domestic accounting and instead use the international standards for more consistency across the globe (Brochet, Jagolinzer & Riedl, 2013).

The International Accounting Standards Board (IASB) and the Financial Standards Accounting Board (FASB) in the United States are working towards convergence between US GAAP and the IFRS, which are the two major accounting standards in the world. Most of the other nations in the world with their own accounting standards are also working towards convergence. The process has been ongoing for several years, and the organizations involved issue updates periodically in order to ensure that both the accounting profession and the general public are aware of the state of the convergence process.

International Financial Reporting Standards (IFRS) are the most used set of accounting principles across the world. IFRS are issued by the International Accounting Standards Board (IASB), an independent, private-sector. Over 12,000 companies in more than 116 countries have adopted IFRS, and more countries are continuing to adopt the standards each year. (IFRS, 2015).

International business has been and continues to be a rapidly growing dimension with communication and transportation advances enabling companies to service a world market. This brings about a new perspective when conducting business in a foreign country, with the need to consider different laws, economic policies, political climates, cultural dynamics, and social factors. Obligatory for its success, a company wishing to expand globally must look at these differences when formulating its international business plan. Additionally, on the heels of such scandals such as those involving Enron, WorldCom, and Satyam Computer Services, investors desire a single international accounting standard; however, hold differing opinions as to what that single standard should be.

According to current literature, the global movement to adopt International Financial Reporting Standards (IFRS) is the paramount financial reporting issue of the 21st century. More Than 100 countries in the world use IFRS as the basis of financial reporting.

International Accounting Standards were formed between 1973 and 2001 by the board of the International Accounting Standards Committee (IASC). On 1 April 2001, the new

The International Financial Reporting Standards (IFRS) is the international accounting standards developed by the ISAB. The ISAB have set up the Disclosure Initiative to examine where IFRS could be improved.

Before 2001, none of the major economies in the world requires the use of International Financial Reporting Standards (IFRS). However, since IFRS was adopted and required by the European Union (EU), IFRS is currently the most widely shared set of accounting standards with its application required or permitted by approximately 120 countries as indicated by the IFRS Resources (2015). IFRS, perceived as “a single set of high-quality, understandable and enforceable accounting standards” (IASB, 2007, p.4), shows its prevalence all around the world. Nevertheless, there are still some opponents against such harmonization. “The likelihood that any U.S. company will be forced to switch from using today’s version of U.S. Generally Accepted Accounting Principles (GAAP) to using today’s version of IFRS is absolutely zero”(2010), said the specialist in corporate financial reporting, Bruce Pounder, doubting the possibility of eliminating differences between IFRS and U.S. GAAP, not to mention sharing a single set of accounting standards in all countries.

The International Financial Reporting Standards (IFRS) Foundation and the International Accounting Standards Board (IASB) are a global language for business affairs that was established in 2001 in order to develop a single set high quality and globally accepted reporting standards. ("IFRS - Organisation history", 2016). The point of the IFRS was main stability and transparency in the

With the globalization of international trades, it is necessary to design a common accounting language to compare the financial performance of companies from different countries. For this reason, International Accounting Standard Board (IASB) publish the International Financial Reporting Standards (IFRS) which are principle-based in order to improve the quality of financial reporting and to harmonize accounting standards in 2001.