The International Accounting Standards Board

The IOSCO plan does not cover accounting standards.(66) These standards are important for providing financial statements in a scheme that are prepared in the similar manner as those by issuers from other countries. The development of international accounting standards is the subject of a distinct project by IOSCO, and many accounting professionals who are concomitant with that undertaking are hopeful that a satisfactory solution is within reach.(67) Supposing, however, that an agreement is possible on a core set of financial standards and that they too are embraced by securities regulators as compulsory for foreign issuers, the road to commonality has at least two other impediments.

The conceptual framework for financial reporting is not an accounting standard but it has been developed by the International Accounting Standards Board (IASB) for the preparation and presentation of financial statements for external users. It assists in the development of future international reporting standards and the review of existing standards. If there is a conflict between the Framework and IFRS, the IFRS view will be implemented.

The IFRS are the standards, interpretations and the framework adopted and developed by the International Accounting Standards Board (IASB) (Freeman, 2014). These set of ac-counting standards would improve comparability of financial information as well as the flow and pricing of capital (Epstein at al 2009). IFRS is becoming the global standard for the prep-aration of company financial statements (Freeman, 2014). International compatible financial statements assist in lending decisions, loan monitoring, and establish international vendor credit and development of other international business relationship (Evans, et al.., 2005).

Opinions regarding the optimal direction of the standard boards vary amongst regulators, practitioners, and academics. Many will argue to support continuing efforts for a uniform set of global accounting standards and believe this will drive more efficient international business. Those who are in favor of a global standard consider it to be of global best interest, and that the standard is worth pursuing for the long-term benefit considering the increasing prevalence of cross-border transactions. Recent global effects of

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

Alexander et al. (2011) claimed that setting a uniform standards known as harmonization can increase the comparability of financial information, which allows more transparency for users of the information. Uniform standards can result in a decrease in

The paper then evaluates International Accounting Standards Board’s (IASB) attempts to develop a conceptual framework and the current state. In the final section I will discuss and reflect upon the evidence presented to support the topic of this essay along with a conclusion of facts and ideas presented.

The international financial accounting standards is a non for profit private sector. Their aim is to serve the public interests. With the growing globalisation of business and finance, it has stimulated a standardisation of accounting standards among countries. This measure aims to

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).

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

In September 2005, the IFRS and GAAP committed to standardizing the Fair Value Measurement in both the IFRS and GAAP. A committee was created that to evaluate all techniques being used across the board of both standards. In May of 2011 the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) issued new guidance on fair value measurement and the disclosure requirements for both the IFRS and the GAAP. (FASB, May) The new guidelines defined the same in both the IFRS and GAAP closes a gap that has been a problem with more companies operating globally in today’s market. Having the new guidance process helps companies know when to use fair value measurement and

As the globalization of markets has become more prominent in recent years, many are wondering why a single set of accounting standards are not followed. After all, English may be the business language, but accounting is the language of business. Accounting standards are essentially just rules that must be followed when reporting any accounting data on any of the company’s financial statements. The objective is to provide the user (creditor or investor) with relevant information of the company’s financial position so that users then can compare it with another company’s financial statements and proceed to make an informed decision. With only that objective in mind, it can be seen why a common set of accounting standards would be beneficial.

In 2001, International Accounting Standard Board (IASB) replaced International Accounting Standard Committee (IASC) in order to develop a high quality standard of accounting for use in the capital markets area and by other numbers of users. (Mary E. et.al, 2007). There were so many issues presented and discussed since then to achieve their main goal. However, without any guidance and framework, to create a new standard that is acceptable and relevant for all users of accounting are difficult. So, conceptual framework is basically was set up to assist the IASB by

When preparing financial statements there are issues that need to be taken into account. The Framework was designed to provide resolutions to these issues.

The existing Conceptual Framework of IASB’s was developed by its predecessor body IASC (International Accounting Standards Committee) in 1989. The material on the objective of financial reporting was first revised by the IASB in 2010 with the US national standard-setter, the Financial Accounting Standards Board (FASB). This ED sets out the proposal for a revised Conceptual framework. It has been developed on the behalf of responses received on (‘the Discussion Paper) which was published in July 2013. (IFRS, May 2015)