Financial Statements From Different Parts Of The World With A Common Set Of Standards

This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This

In 1939, the AIA also known as The American Institute of Accountants formed the Committee on Accounting Procedure that issued 51 accounting research bulletins and began the process that eventually became known as the GAAP. In 1957, the American Institute of Accountants was renamed AICPA or American Institute of Certified Public Accountants. The AICPA or American Institute of Certified Public Accountants formed the Accounting Principles Board in 1959, which issued their 31 APB Opinions. The FASB or Financial Accounting Standards Board formed in 1973 issued 168 Statements of financial accounting standards. As of July 1, 2009, the Accounting Standards Codification became one authoritative source of general accounting principles in the United

increased international compatibility of accounting standards should occur, because they are developed in the context of a conceptual framework that is similar to the conceptual frameworks used by the International Accounting Standards Board (IASB) and major overseas national standard setters;

differences but on the reduction of contradicting rules. the aim of the international harmonisation process of Accounting Standards is to reduce or overcome differences world-wide, in order to reach a better international

The IASC was formed in 1973 at the initiative of Henry Benson, a British chartered accountant, who was at that time head of the company that would later become PricewaterhouseCoopers.

As we can understand from above that one person’s principle cannot necessarily be another one’s too; there needs to be an independent body, which can produce universally acceptable principles to resolve matters systematically and uniformly. When we talk about the introduction of a universal set of principles in the field of accounting, it was the famous stock crash of 1929, which wreaked havoc in the financial markets around the globe and created a situation where the need for generally accepted accounting principles was felt the most! (Lawrence et al, 1993). The resulting economic downturn, which lasted until 1939, was one of the gravest depressions ever recorded in the history and a lack of universal accounting standards was blamed to be one of the reasons for over valuation of stocks and overtrading. Although the depression arose in the United States but output losses, deflation and job cuts were observed all over the globe (Romer, 2003). Between these times the accounting profession started to promote the idea of independent audits and

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

In 2001, IASC was replaced by IASB as the board for setting these standards. This board consist of 14 experts having recent practical experience in setting accounting standards. They bought in the strategic working party, which took a new look at IASC’s structure. IASB bought in many structural changes. But one of the most notable change among that was replacing the part-time volunteer board with full-time member. The four main objective of IASB are

IASC was founded in 1973 to form a uniform standard of accounting and financial report to help reduce cost from handling different accounting practices and coordinating them. IASC was restructured to IASB in 2001 to increase the quality of accounting standards and to promote the use and rigorous application of those standards. (IASB, 2015). The objective of IASB is to adjust to the changing environment of international business. (IFRS, 2015).It can help set the accounting standards which are understandable and which are of high quality and is easier to implement. It helps the users to make economic

The International Financial Reporting Standards (IFRS) are one example of this, adopted in 1989 by the International Accounting Standards Board. Many of these were previously known as International Accounting Standards (IAS) issued between 1973 and 2001. However, on April 1, 2001, the IASB took over the responsibility for setting new standards to establish a framework for the preparation and presentation of financial standards. This is done, broadly, to reflect true and accurate views of the organization regardless of the country of preparation (IASB 2012).

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

An IAS is a set of enforceable global accounting standards that are developed by the International Accounting Standards Board (IASB) in the interest of the public, which consist of high quality and comparable information for the use in financial reports. These are then used to assist, users of the information and people in a variety of markets worldwide, to reach commercial decisions. (Investopedia, 2003)

International standards on auditing were set to provide guidance for audits conducted all over the world. As globalization becomes more prevalent, it is essential that these standards are set to provide guidance in the conductions of audits internationally. Even though there are international standards, each country can develop their own set of standards and adopt some of the aspects of the international standards on auditing. However, there is no requirement that the standards set in a particular country have to be completely identical to those provided by the IAASB. Both the US and China are powerful world leaders with their hands in investments all around the globe. As there is always a risk of financial reporting fraudulency, it is essential that each country has their own standards when it comes to conducting an audit in their country. In the US, the American Institute of Certified Public Accountants (AICPA) established Generally Accepted Auditing Standards (GAAS) to be used as guidance for the CPA’s who are engaged to perform an audit. However, after the the Sarbanes Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) was created to oversee the audits of public companies in order to protect stakeholders interest in the preparation of informative, accurate and independent audit reports. Even non-U.S. public accounting firms that audit or play a substantial role in the audit of U.S. issuers, brokers, and dealers are subject to oversight by the

In the United States, the International Auditing and Assurance Standards Board (IAASB) works as an independent body, setting standards for auditing under the International Federation of Accountants (IFAC). The IAASB establishes the best quality auditing, quality control, assurance, and related services in order to ensure uniformity of practice by professionals all across the world. Until 2002, the IAASB was formerly known as the International Auditing Practices Committee or IAPC. With such high standards in place for auditing and assurance, public confidence is therefore improved (International Federation of Accountants, 2014).

The International Accounting standards were started in 1966 after a proposal that was presented to create an International Study group that included the Institute of Chartered Accountants of England and Wales or the ICAEW, American Institute of Certified Public Accountants or the AICPA, and the Canadian Institute of Chartered Accountants or the CICA. In the beginning, the International Accounting Standards was not considered a “committee” but a