The International Accounting Standard Board

2018 WordsOct 26, 20169 Pages
With the development of the globalization, the business connection between diverse countries is becoming stronger and closer. Thus finding a uniform business language among different enterprises is an increasingly important issue, which could help company owner to understand better and evaluate various investment opportunities in foreigner countries. Accounting is widely recognized as one of the most efficient and useful tools to communicate in the business word. However, there are a large number of accounting standards in diverse financial markets, such as Japan Generally Accepted Accounting Principle (JGAAP), Australian Accounting Standard (ASS) and the US Generally Accepted Accounting Principle (US GAAP). To fill the gap between discrepant accounting standard, the International Accounting Standard Board (IASB) attempt to set up universal accounting standard and make it universally accepted and applied. IASB has established in 2001 April, which was reorganized by the International Accounting Standard Committee (IASC), and its work is quickly approved by its target group. During this process, a common conceptual framework was initially developed by a joint IASB-FASB Project, which was used as a basis for accounting standards. In 2012, this project was suspended and replaced by an IASB-only comprehensive project (reference). Initially, the conceptual framework was revised by the IASB and the Financial Accounting Standard Board (FASB), which is the US national accounting
Open Document