The International Accounting Standards Board

As the responsibilities of the global harmonization of accounting standards IFRS and GAAP transfer to IASB, FASB’s influence is waning. Advantages of the convergence include high quality financial reporting, which lowers cost of capital for investors and the cost of borrowing for companies. However, there are disadvantages to be noted, such as the costs of introducing IFRS to current and potential accountants and the risk of reducing the uniformity of financial reports due to the lax rulings of IFRS, which promotes earnings management amongst companies. Although arguments regarding the convergence remain prevalent, the completion of IFRS and GAAP is inevitable. Come year 2015, accountants, investors, and companies alike will discover whether or not the pros outweighed the cons; or vice versa.

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.

A joint convergence committee created the members of (FASB) and (IASB). (IASB) is recognized as an independent accounting standard-setting body that is similar to (FASB) that joins (GAAP), and is governed by the (IFRS) foundation. Due to this convergence, (AICPA) believes U.S. adoption of a single set of high-quality, globally accepted accounting standards will benefit U.S. financial markets and public companies by enabling preparation of transparent and comparable financial reports throughout the world, (American Institute of CPAs, 2016). Secondly, (AICPA) is dedicated to supplying the whole accounting profession with information, tools and IFRS.com for instance to assimilate as well as implement a new set of standards. As the (AICPA) supports continual convergence of reliable accounting standards between (IFRS) and (GAAP) the mission of completion between (IASB) and (FASB) is prolonged. (AICPA) will always support funding mechanisms of the body-making

The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have

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.

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.

The International Accounting Standards Boards (IASB) and the Financial Accounting Standards Board (FASB) are making an effort to converge to develop International Financial Reporting Standards (IFRS) by gathering accounting standards that can be used in financial reporting whether it is in the home country or in the host country. Both the International Accounting Standards Board and the US FASB have proven to be vital promoters of the globalization of international financial accounting standards (Kirsch, 2012). These efforts have focused on a cohesive setting that will eliminate the controversy that revolves around accounting standards. I will present to you the facts and differences between the two, state the facts and identify

Its key objective is to standardize general accounting practices globally, ensuring fair and accurate reporting of financial statements. The different sets of standards used in the accounting world depend on the business type or firm and its area of location. They include the Generally Accepted Accounting Principles (GAAP) which was developed by the Financial Accounting Standards Boards (FASB), the GAAP are used essentially by public traded and private companies in the United States to watch over and protect the public’s interest. The items covered by the GAAP are revenue recognition, outstanding share measurements and classification of balance sheet items. The International Financial Reporting Standards (IRFS) developed by the International Accounting Standards Board (IASB), the IRFS are devised to eliminate disparities and to serve as a common accounting language in financial reporting documents for businesses operations that run through globally and

International Accounting standard Board (IASB) is ‘responsible for the development of high quality global accounting standards for use in the world’s capital markets and by other users.’ It is the standard-setting body of the International Accounting Standards Committee (IASC) Foundation. It was formed in 2001 to replace IASC. The objectives of IASC foundation are to develop a single set of global financial reporting standard and to encourage the use of those standard.

These theoretical principles provide the basis for the development of new accounting standards and the evaluation of those already in existence. (Limited, 2016)

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)

IASB aims to develop in the public interest by setting a high quality accounting standards which are understandable and enforceable worldwide. The accounting standard is transparent and comparable information in the financial statements. IASB also operate to work actively with the national standard setters to bring union of national accounting standards and International Financial Reporting Standards (IFRS). These aims are set based on the consideration on providing important, reliable information which is easily accessible by the users of the IAS and to look for future development in the quality of the standards to restrain resources. In the consideration process, the staffs of the IASB are asked to identify, review and raise issues that might warrant the IASB’s attention. (IFRS, 2014, Online)

For many years, countries have created their own accounting standards which was either rules based, principle based, tax oriented, business based, etc which as a result, made them all different. There eventually came a need for harmonization since the world was undergoing globalization. As we approached the late 1990’s, we saw two predominant standards which was GAAP and IFRS. It is now clear that the world is moving to a more