Fundamental concepts of International Accounting Standards Board (IASB)
According to IAS Plus website, International Accounting Standards Board is described as: „independent, private sector professional body, which develops and approves International Financial Reporting Standards (IFRSs)”. It can be argued that IASB was prefaced by International Accounting Standards Committee (IASC) which has been established in 1973 with the aim of introducing and implementing new standards worldwide. IASC released 41 international accounting standards (IASs) and it ended in 2001, as it was reconstructed to IASB. When IASB started to run, any accounting standards released after IAS 41 would be called as: IFRSs.
This elaboration paper explains the role of …show more content…
It means that the internal standards of one country should be compliant with standard of other countries in order to acquire the high quality of international accounting standards issued by IASB. The process of harmonisation is important, as it may bring many benefits to different users of information in order to understand and exert accounting on the global scale. Moreover, the second important role of IASB is to provide framework for financial reporting. According to IAS Plus website, IASB must to make sure that all standards are: “high quality, understandable, enforceable and globally accepted based on clearly articulated principles”. Generally, International Accounting Standards Board is based on developing, preparing and issuing IFRSs. Moreover, this particular board must follow stages through which accounting treatment must go in order to became international accounting standard, for instance: provide exposure drafts and consider the public …show more content…
To compare businesses from different countries the same basis of accounting standards. It is really helpful for the owners of small businesses who do not have the accounting tools to compare businesses, as single set of international standard would make it easier for them to evaluate business and check its reviews. Moreover, the possibility for expansion of particular business to another country is bigger, because owners will not be required to change all of the standards and therefore, they will save a lot of money. It can be argued that globalisation become important, as people overseas want to buy more international products rather than choosing the local ones. In addition, only one ruling international accounting board is reducing the disagreement between countries, because international investors, lenders and suppliers as well as ordinary people will be able to understand the same set of standards. It can be argued that, when using a single set of accounting standards, all of the international
According to IAS Plus website, International Accounting Standards Board is described as: „independent, private sector professional body, which develops and approves International Financial Reporting Standards (IFRSs)”. It can be argued that IASB was prefaced by International Accounting Standards Committee (IASC) which has been established in 1973 with the aim of introducing and implementing new standards worldwide. IASC released 41 international accounting standards (IASs) and it ended in 2001, as it was reconstructed to IASB. When IASB started to run, any accounting standards released after IAS 41 would be called as: IFRSs.
This elaboration paper explains the role of …show more content…
It means that the internal standards of one country should be compliant with standard of other countries in order to acquire the high quality of international accounting standards issued by IASB. The process of harmonisation is important, as it may bring many benefits to different users of information in order to understand and exert accounting on the global scale. Moreover, the second important role of IASB is to provide framework for financial reporting. According to IAS Plus website, IASB must to make sure that all standards are: “high quality, understandable, enforceable and globally accepted based on clearly articulated principles”. Generally, International Accounting Standards Board is based on developing, preparing and issuing IFRSs. Moreover, this particular board must follow stages through which accounting treatment must go in order to became international accounting standard, for instance: provide exposure drafts and consider the public …show more content…
To compare businesses from different countries the same basis of accounting standards. It is really helpful for the owners of small businesses who do not have the accounting tools to compare businesses, as single set of international standard would make it easier for them to evaluate business and check its reviews. Moreover, the possibility for expansion of particular business to another country is bigger, because owners will not be required to change all of the standards and therefore, they will save a lot of money. It can be argued that globalisation become important, as people overseas want to buy more international products rather than choosing the local ones. In addition, only one ruling international accounting board is reducing the disagreement between countries, because international investors, lenders and suppliers as well as ordinary people will be able to understand the same set of standards. It can be argued that, when using a single set of accounting standards, all of the international