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The bodies that make up the International Accounting Standards?
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∙ 14y ago
The International Accounting Standards Board (IASB) is an independent group of 15 experts with an appropriate mix of recent practical experience of standard-setting, or of the user, accounting, academic or preparer communities.
Source: IASB website
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∙ 14y ago
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Why using Accounting Standards?
Accounting standards help to standarise the financial reporting of companies in all areas to make it easier to make comparisons. With the international accounting standards it allowes this to become international, once exchange rated have been applied.
What is the regulatory bodies in accounting?
The regulatory bodies that govern accounting practices are Securities and Exchange Commission, the American Institute of Certified Public Accountants, the Financial Accounting Standards Board and the Governmental Accounting Standards Board. These regulatory bodies make sure companies file their accounting statements correctly.
What is the function of International Accounting Standard Committee?
The International Accounting Standard Committee (IASC) oversees the functions of the International Accounting Standards Board in the development of accounting standards that can be adopted by businesses operating in different countries. The goal of this project is to make it easier to compare the financial statements of a business in Country A with those of a business in Country B, providing more useful information to investors who are deciding which companies to invest in.
What is the Importance of accounting principles to a financial analyst?
off-course it is requisite to know the accounting principles. For financial analyst it is necessary to know firstly GAAP analysis (generally accepted accounting principles).Where accounting standards ,rules and regulation are stated in accordance with the international accounting standard board. Obivously,we have numbers of accounting standards IAS and priciples on the basis of this financial analyst enable to make decision. In a nut shell, when we have accounting rules standards and a defined guideline it will be very convinient for financial analyst to make decision.
What are the procedure of issuing accounting standards in India?
PROCEDURE FOR ISSUING AN ACCOUNTING STANDARD FOR LOCAL BODIES (ASLB) Broadly, the following procedure is adopted for formulating Accounting Standards for Local Bodies: 1. Determine the broad areas in which Accounting Standards need to be formulated and the priority in regard to the selection thereof. 2. For the preparation of the Accounting Standards, the CASLB will be assisted by Study Groups constituted to consider specific subjects. In the formation of Study Groups, provision will be made for wide participation by various interest groups. 3. The draft of the proposed standard will normally include the following: a. Objective of the Standard, b. Scope of the Standard, c. Definition of the terms used in the Standard, d. Recognition and measurement principles, wherever applicable, e. Deviations, if any, from the corresponding International Public Sector Accounting Standard (IPSAS), as an Appendix to the Standard. 4. The CASLB will consider the preliminary draft prepared by the Study Group and if any revision of the draft is required on the basis of deliberations, the CASLB will make the same or refer the same to the Study Group. 5. The procedure for issuance of an Interpretation on any Accounting Standard for Local Bodies will be the same as that for issuance of an Accounting Standard since the authority of an Interpretation is the same as that of Accounting Standard for Local Bodies to which it relates. 6. The CASLB will circulate the draft of the Accounting Standard/Accounting Standards Interpretation for Local Bodies to the Council members of the ICAI and the following specified bodies for their comments: a. Comptroller and Auditor General of India (C&AG)b. Ministry of Urban Development, Government of India c. Controller General of Accounts d. Ministry of Panchayati Raj, Government of India e. National Institute of Urban Affairs f. Directorates of Local Bodies of the State Governments g. Directorates of Local Fund Audit Department of the State Government h. Major Local Bodies i. National Institute of Financial Management j. Securities and Exchange Board of India k. Any governmental Committee(s) or other similar body, e.g., the Technical Committee on Budget and Accounting Standards for ULBs constituted by the Ministry of Urban Development l. The All India Council of Mayors m. All India Institute of Local Self Government n. Donor of funds to Local Bodies such as US AID, World Bank, etc. o. The Institute of Cost and Works Accountants of India p. The Institute of Company Secretaries of India q. All the Indian Institutes of Management (IIMs) r. Any other body considered relevant by the CASLB keeping in view of the nature of the Accounting Standard. 7. The CASLB will hold a meeting with the representatives of the selected specified bodies to ascertain their views on the draft of the proposed Accounting Standard/Accounting Standards Interpretation for Local Bodies. On the basis of comments received and discussion with the representatives of specified bodies, the CASLB will finalise the Exposure Draft of the proposed Accounting Standard/Accounting Standards Interpretation for Local Bodies. 8. The Exposure Draft of the proposed Standard/Interpretation will be issued for comments by the members of Institute and the public. The Exposure Draft will be sent to the specified bodies (as listed above), and other interest groups, as appropriate. 9. The Exposure Draft will be sent to any governmental Committee(s) or other similar body, e.g., the Technical Committee on Budget and Accounting Standards for ULBs constituted by the Ministry of Urban Development for sending comments on the Exposure Drafts of the proposed Standard/Interpretation.10. After taking into consideration the comments received, the draft of the proposed Accounting Standard/Accounting Standards Interpretation for Local Bodies will be finalised by the CASLB and submitted to the Council. 11. The Council of the ICAI will consider the final draft of the proposed Standard/Interpretation, and if found necessary, modify the same in consultation with the CASLB. The Accounting Standard/Accounting Standards Interpretation on the relevant subject will then be issued by the ICAI. 12. The ICAI will send the Accounting Standards so formulated to the governmental Committee(s) or other similar body, e.g., the Technical Committee on Budget and Accounting Standards for ULBs constituted by the Ministry of Urban Development for recommending the same for implementation by the State Governments to achieve uniformity in preparation and presentation of financial statements by complying with the requirements of the Accounting Standards for Local Bodies. 13. For a substantive revision of an Accounting Standard.Accounting Standards Interpretation for Local Bodies, the procedure followed for formulation of a new Accounting Standard/Accounting Standards Interpretation for Local Bodies, as detailed above, will be followed. 14. Subsequent to issuance of an Accounting Standards/Accounting Standards Interpretation for Local Bodies, some aspect(s) may require revision which are not substantive in nature. For this purpose, the ICAI may make limited revision to an Accounting Standard/Accounting Standards Interpretation for Local Bodies. The procedure followed for the limited revision will substantially be the same as that to be followed for formulation of an Accounting Standard/Accounting Standards Interpretation for Local Bodies, ensuring that sufficient opportunity is given to various interest groups and general public to react to the proposal for limited revision.
What are the responsibilities of IAS?
International Accounting Standards? It is a way to make everyone's bookkeeping conform to the same set of rules so you can compare the financial statements of different companies.
What are the Needs for accounting standards?
The term standard denotes a discipline, which provides both guidelines and yardsticks for evaluation. As guidelines, accounting standard provides uniform practices and common techniques of accounting. As a general rule, accounting standards are applicable to all corporate enterprises. They are made operative from a date specified in the standard. Accounting is the art of recording transactions in the best manner possible, so as to enable the reader to arrive at judgments/come to conclusions, and in this regard it is utmost necessary that there are set guidelines. These guidelines are generally called accounting policies. The intricacies of accounting policies permitted Companies to alter their accounting principles for their benefit. This made it impossible to make comparisons. In order to avoid the above and to have a harmonised accounting principle, Standards needed to be set by recognised accounting bodies. This paved the way for Accounting Standards to come into existence.
What is difference between accounting concept and accounting principles and convention?
Accounting concepts are essentially theories. Accounting principles are measures and processes that have proven to be successful when used. Conventions are beliefs within the discipline that help make things efficient.
What is the relation between accounting theory and accounting practices?
Accounting theory examines practical and theoretical issues in accounting practices such as historical costs, decision usefulness, portfolio risk, fair-value-oriented standards and executive management compensation and earnings. In addition, it also discusses economic and political issues and criteria related to accounting practices required by accounting governing bodies such as Canadian Institute of Chartered Accountant (CICA), Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB). The first goal of accounting theory is to describe and explore various theories that underlie financial accounting and reporting. The second goal is to explain and illustrate the relevance of these theories in order to understand the practice of accounting and reporting. Some of the main theories are based on economics and finance. For instance, by discounting future cash flows to present time, the present value model enables a theoretically correct basis of asset and liability valuation and income measurement of a firm. Thus, the present value model provides a benchmark to guide accounting practice. From a finance stand point, portfolio and efficient market theory are used in accounting practices in understanding how investors make rational investment decisions and how they use financial accounting information to make their decisions. Accountants can then prepare financial statements that are of greatest use to investors. To put in a nutshell, accounting theory helps to understand the impact of complex ideas and regulations on financial reporting and the interpretation of information generated by financial reporting at the conceptual level.
What is FASAB's primary function?
FASAB's primary function is to make recommendations to the principals for financial accounting and reporting standards to be adopted for the U.S. federal government.
Whom did Sarbanes-Oxley make responsible for the enforcement of professional standards in accounting?
Section 105 of SOX makes the PCAOB responsible for the enforcement of the professional standards for accountants auditing the financial statements of corporations issuing securities in public markets.
Why does financial accounting have to comply with GAAP but managerial doesnt?
No Accounting standards have been developed for managerial accounting and it is so that because managerial accounting deals and use for internal purpose of management and do not concern with outside stake holders that's why it is on organizations decision that how they use managerial information. IFRS or IAS or GAAP are developed for financial accounting because financial information is required to be disclosed to general public and that's why it is for the benefit for the general user who don't know much about general working of entity so to make it helpfull these accounting standards are developed so that these general public can get information they required from financial statements of the entity easily.
