The International Accounting Standards Board

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

The national Financial Accounting Standards Board (FASB) and The International Accounting Standards Board (IASB) came together and jointly issued a newer revenue recognition standards. This will change the effects of the current revenue guided under US GAAP and IFRS. It will take not much of the time to be used as the date is set to have effects from 2017. All of the firms had to work under the rules and regulations set. There is enough of the time left to understand and work on the changes. On dated 28th May, 2014 the new revenue standards were issued for contracts with customers. It has the power to give limitations and new rules are to be followed by various industries. It also includes those industries which have their own policies

On February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (Update) on Leases (Topic 842) to communicate changes to the FASB Codification. In this Update it defines the term, Leases and also explains why FASB is issuing this Update, who will be affected by the amendments, how do the main provision differ from current Generally Accepted Accounting Principal (GAAP) and why are they an improvement, as well as explaining the transition and when the amendment will be effective.

Earnings per share is introduced by the Financial Accounting Standards Board as the functionality used to calculate an institutions’ earnings for the year-end financial statements. The institutions can be made of up a simple or complex capital structure. It must be calculated on a constant basis in order for reports to remain consistent. FASB provides a formula of “dividing income available to common stockholders by the weighted average number of common shares outstanding during the period” (FASB 2009), to measure each share of stock earned. The net income of an institution simply comes from their income statement. The weighted average of common shares outstanding references on average how much was stock was outstanding during the entire year, since it fluctuated throughout the year. An issue that can be faced when determining earnings per share is the concept of share buybacks. This concept discusses cash that is not actually being invested but gives off the impression of good performance, when in all actuality, nothing had been generated. Investors and creditors focus a lot of attention to the findings of earnings per share as it sparks monetary interests. Ultimately, institutions strive for higher rates of earnings per share to demonstrate the institution’s performance and the likelihood of future success.

Regulators and Accounting Standards Board have long struggled with the developing comprehensive reporting standards that will improve transparency, reliability, completeness, and comparability of the financial statements prepared by the company. The need to promote investor confidence in the market makes it important to improve the financial reporting standards so that investors are able to obtain accurate, reliable and complete information in order to make informed judgments. This paper reviews recent attempts by SEC and FASB to improve the reporting of off-balance sheet transactions, variable interest entity, and non-controlling interest.

According to the International Accounting Standard Board, IAS 11 provides for accounting of revenues and costs pertaining to a construction contract. Revenues from a construction contract are only recognized when the contract is complete. However, there is another possibility whereby a proportion of net income is recognized over the period of the contract which is also known as the percentage of completion method. Contract revenues usually comprise of the initial revenue as agreed in the contract and variations in contract work, claims and incentive payments. In addition, IAS 11 consists of two types of contracts which are fixed price and cost plus contracts. Fixed price contracts are contracts whereby a fixed contract price is accepted by

Similar to the Financial Accounting Standards Board’s (FASB) governance of U.S. GAAP in the United States, the International Accounting Standards Board (IASB) was formed in 2001 to be the governing body responsible for International Financial Reporting Standards (IFRS). IFRS standards are beginning to be recognized globally as the leading accounting standards. Since 2002, the IASB and FASB have been committed to agreeing on unified international accounting standards. The ultimate goal is for IFRS to replace U.S. GAAP for the United States and be the new requirement for reporting for public companies. In the meantime, there are around 120 countries that already permit or require IFRS reporting and 90 countries that have fully adopted

Lease is one of the most important measures in providing an overall financial obligations of a company. It’s a way of gaining access to assets, obtaining finance and reducing risk of assets ownership (IFRS Exposure Draft Leases 2013, pp. 5). However, existing lease recognition under standard AASB 117 is limited and inconsistent, it does not provide a clear picture to the existing financial statement users.

Accounting standards are authoritative statements intended to narrow the areas of differences and varieties in accounting practice. It is important regulatory devices of accounting. It serves as a contract template among management, creditors and investors. As companies have become more globalized, comparing financial statements has become more difficult because of different accounting rules (maxwellsci). Over 100 countries have adopted International Financial Reporting Standards (IFRS) in that matter. The accounting system in U.S. has been based on Generally Accepted Accounting Principles (GAAP) since the 1930s. In theory, switching to IFRS would make it easier to compare U.S. business to others around the world, reducing companies’ cost of capital. However, not everything changes at once (Nick). The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) have set a long-term strategic priority to achieve convergence of IFRS and U.S. GAAP into a common set of high quality global accounting standards. The convergence is to avoid conflict and confusion, promote simplicity, consistency and transparency (IFRS.org).

The International Accounting Standards Board (IASB) is revising its Conceptual Framework to improve and clarify the ways financial statements are prepared and presented. The process began in 2004 with a preliminary discussions between the US Financial Accounting Standards Board (FASB) and the IASB. Work was suspended in 2010 then revived in late 2012 as an IASB-only project. Work is still ongoing, with a preliminary discussion paper released in 2013 aiming to collect comments to develop an Exposure Draft will be published in early 2015.

According to Delloite (http://www.iasplus.com/en/resources/ifrsf/due-process/background-to-ifrs)”The International Accounting Standards Board (IASB) is an independent non-profit organization that develops and approves International Financial Reporting Standards (IFRSs)”. In mainly usage, the term 'International Financial Reporting Standards ' (IFRSs) has both a narrow and a broad meaning. Firstly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC at 2001 interpretations approved by the predecessor International Accounting Standards Committee.” The IASB has all responsibilities for the technical matters of the IFRS Foundation. The objective of financial reporting is the foundation of the conceptual framework. Other aspects of the framework - qualitative characteristics, elements of financial statements, recognition and measurement - will build on that foundation with the aim of ensuring that financial reporting achieves its objective. The goal of IFRS as said at (source) is”to develop a set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles”. To surmount these difficulties and still connect accounting to

“…describes the objective of, and the concepts for, general purpose financial reporting. It is a practical tool that: (a) assists the International Accounting Standards Board (IASB) to develop Standards that are based on consistent concepts; (b) assists preparers to develop consistent accounting policies

The Conceptual Framework adopts financial reporting as issued by the Financial Accounting Standards Board (FASB) of USA. The standards were placed in

What is the International Accounting Standards Board? This paper will give a brief overview on the history of the International Accounting Standards, starting with the role of the IASC Foundation, the structure of the IASB and the number of accounting standards currently published. Next, it will explain the steps in creating an international accounting standard in accordance with due process and it will show the mailing address and phone number. Lastly, there will be a summary of two most recent accounting standards issued by the IASB.