Knowledge of Accounting System as Effective Tools in the Decision-Making of Micro Enterprises

In May 2008, the AICPA’s Governing Council designated the International Accounting Standards Board (IASB) as the body authorized to establish international financial accounting and reporting principles under rule 202 and 203 of the AICPA Code of Professional Conduct. Below is an illustrative Independent Auditor’s Report on financial statements issued in conformity with IFRS.

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).

In 2001, The International Accounting Standards Board (IASB) was established to develop the International Financial Reporting Standard (IFRS). ). The first IFRS was issued in 2003 and European Union (EU) members committed for requesting all listing company to apply the IFRS in their jurisdictions and will effective on year 2005 (Brussels, 2000).

In today’s business, markets are demanding increasing conformity. Many countries have converted to and implemented the International Accounting Standards Board (IASB)’s accounting standards. The United States, however, still maintains its own Financial Accounting Standards Board (FASB). Both IASB and FASB have created International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (U.S.GAAP) respectively. These accounting standards are rules of measurements for financial statements that companies issuing stock to the public must provide

IFRS or International Financial Reporting Standards is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). It is also the common accounting standard used by over 110 countries around the world.

International Financial Reporting Standards (IFRS) are an international set of accounting standards. Early in the 21st century, the Australian Accounting Standards board, with guidance from the Financial Reporting Council (FRC), decided to implement IFRS’s throughout Australia. This decision was made so that Australia could participate and contribute to the development of a distinct set of accounting standards that could be used all around the world.

“International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB).” (IFRS 2011). IFRS establishes guidance for companies on how to prepare financial

Small and medium-sized enterprises (SME’s) have proved to be the dynamo for the many economies of the world. SME helps in creating jobs, driving innovation, growth and economic diversification.

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

The International Financial Reporting Standards “are a set of accounting standards developed by the IASB that is becoming the global standard for the preparation of public company financial statements.” (AICPA). IASB started operating in 2001 and is established as an independent organization that also sets accounting standards. According to the American Institute of Certified Public Accountants, IFRS is used by roughly 120 nations all over.

On 1st April 2001, a new body named as International Accounting Standards Board (IASB) took over the responsibility of ISAC for setting International Accounting Standards. The IASB adopted the existing IAS issued by ISAC and standards of Standing Interpretations Committee (SIC). However, the new standards developed and issued by IASB are known as International Financial Reporting Standards (IFRS).

There is a very lengthy and detailed due process that must be followed when developing standards for IFRS. The main goal of the IFRS Foundation is “is to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based on clearly articulated principles.” The IFRS Foundation delegates the responsibility of developing standards to the International Accounting Standards Board (IASB). The IASB is continually striving to develop standards that offer the most accurate representation of an entity’s financial performance through its financial statements. These standards are intended to help lenders, investors,

According to Malaysian SME annual report (2005 & 2006), small business enterprises or known as SME have been recognized as the strategic thrust in Malaysian economy and is a very important segment of the Malaysian economy accounting for 99.2% of total business establishments. SME also providing employment for about 56% of the total workforce and contributing about 31% of gross domestic product. Small business enterprises can be grouped into three categories which is micro, small or medium enterprise. These grouping can be decided based on two aspects either the number of people a business employs or on the total sales or revenue generated by a business in a year.

The Ministry of Micro, Small and Medium Enterprises (MSME), is launched by Government of India, which has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness. It helps capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.

If efforts are put towards promoting SMEs, particularly, the likes that are concerned with the informal sector, achievement of development that is sustainable is inevitable. Most developing as well as developed countries depend on the small and micro enterprises in the provision of employment. Even though a number of small and medium-sized enterprises are not part of the formal sector that is