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Why international accounting standard board formulate accounting standards?
Wiki User
∙ 11y ago
The IASB has developed IFRS (International Financial Reporting Standards) in order to fufill the public interest for "high quality, understandable" and internationally comparableFinancial Statements. This is due to Globalisation and the free flow across borders of Capital. There is a need for a single set of "rules" by which accounting material is prepared.
For example:
In the past there was a case of a manufacturer that was listed on the Stock Exchange in two countries (The US and Germany- their home nation).
They had to create two sets of financial statements in order to fufill the rules of the Stock Exchanges.
This for one had an added cost to the firm but also resulted in the firm publishing a substantial profit in one country and a large loss in the other (due to the different preparations).
This basically negated any value that the Financial Statments would have thus the need for International Standards so that regardless of the countries listing country any investor could understand and use their Statements.
Wiki User
∙ 11y ago
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What are the differences between Indian Accounting Standards and International Accounting Standards?
Indian accounting standards are developed by Indian board and only applicable in India while international accounting standards are developed by International Accounting standard board and applicable to all countries.
How accounting standard maintain all over the world?
When it comes to business, there is a common global language for accounting. This is known as IFRS, or the International Financial Reporting Standards.
How many types of accounting standards?
29 accounting standard
What is frs and ifrs?
FRS - Financial Reporting StandardsIn UK, the chief standard-setter for financial accounting is the Accounting Standards Board (ASB), which issues standards called Financial Reporting Standards (FRSs). The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies.IFRS - International Financial Reporting StandardsInternational Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). This is used extensively in EU and there are efforts being made to converge accounting standards globally to IFRS.
The major reporting standard for management accounts?
The major reporting standard for management accounts the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management. The standards outline the ethical standards that accounting practitioners must adhere to.
What are the differences between Indian Accounting Standards and International Accounting Standards?
Indian accounting standards are developed by Indian board and only applicable in India while international accounting standards are developed by International Accounting standard board and applicable to all countries.
What is international account standard board?
The International Accounting Standards Board is a new accounting standard. Its purpose is to become the global standard of accounting. It has not been fully adopted yet.
Who is responsible for formulating accounting standards?
International accounting standard board is responsible for standards more information athttp://www.iasb.org/Home.htm
What is the function of International Accounting Standards Board?
The function of the International Accounting Standards Board is to oversee the doings of Accountants and businesses worldwide. The Board handles the functions of in house police over companies and individuals that come under their purview.
Where can one find information about the International accounting standards board?
There are a few places where one can find out information about the International Accounting Standards Board. Such places include: The direct website, company accounts, and numerous accounting standard websites.
The bodies that make up the International Accounting Standards?
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
Difference between international accounting standard and accounting theory?
IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee On the other hand by simple Accounting Standard we mean " Accounting Standard issued by the Institute of Chartered Accountants of India(ICAI)".
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.
Whether international harmonisation of accounting standards is a good idea?
AnswerHow do specific accounting theories helps us to understand issues relating to harmonization of accounting standard.
Indian accounting standard with international accounting standard?
Yes
How many types of accounting standards?
29 accounting standard
How accounting standard maintain all over the world?
When it comes to business, there is a common global language for accounting. This is known as IFRS, or the International Financial Reporting Standards.
