Internationa Accounting

Internationa Accounting

  • Submitted By: PacoPete
  • Date Submitted: 08/17/2009 9:24 PM
  • Category: Business
  • Words: 854
  • Page: 4
  • Views: 356

The international accounting standards board (IASB) is “an independent standard-setting board, appointed and overseen by a geographically and professionally diverse group of Trustees of the IASC Foundation who are accountable to the public interest,” (IASB.org, 2009). The IASB is the standards setting body of the International Accounting Standards Committee (IASC) which, beginning in 2005, the European Union has required for publically listed companies to provide financial statements using IFRS’s (International Financial Reporting Standards developed by the IASB).
Formed in 1973, the IASC has developed how financial reporting is performed worldwide in a short period of time. The IASC then compromised of a set of part time volunteers from 13 countries who were responsible for setting accounting standards. However, in 1997 the IASC concluded that “to perform its role effectively, it must find a way to bring about convergence between national accounting standards and practices and high-quality global accounting standards,” (Deloitte Touche Tohmatsu, 2009), The Strategy Working Party published a series of recommendations for the restructuring of the old system which, in 1999, the IASC board unanimously approved. The following year, the restructuring led to the renaming of the standards setting body to the IASB operating under the new IASC Foundation.
The IASC Foundation is a complex structure consisting of branching and diverse organizations responsible for promoting the use and application of IFRS’s. The IASC is responsible for appointing several other organizations including the SAC, the IASB and IFRIC under this intent. Beginning in 2001, the IASB, the independent accounting standard setter located on 30 Cannon Street, London, assumed accounting standard responsibilities from the IASC as a culmination of the restructuring done. The IASB has “a mandate to establish a set of international financial reporting standards and to encourage convergence on those...

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