Fundamental Concepts Of International Accounting Standards Board
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 IASB and describes how members of this particular standards board are appointed. Moreover, it identifies the stages throughout which accounting treatment must got in order to became international accounting standard. In addition, it elaborates the advantages and disadvantages of having a single set of international accounting standards set by IASB.
The role of IASB and appointment of its members.
The main role of International Accounting Standards Board is to integrate all countries worldwide. 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…