IASB: Role and History

733 Words3 Pages
International Accounting Standards Board: Role and History L.E. Spry Advanced Financial Accounting/ACC440 January 29, 2007 International Accounting Standards Board: Role and History The International Accounting Standards Board (IASB) consists of 14 members that work as an independent, private organization to develop and approve International Financial Reporting Standards, operating under the direction of the International Accounting Standards Committee Foundation (IASBPlus, 2006). In order to fully grasp the functions of this Board, it is important to develop an understanding of its role in accounting practices, its history, and to establish the progress necessary to ensure compliance by countries operating in developmental stages. Finally, the ethical practices of those working in the accounting field should also be reviewed and international standards for education in this area mandated appropriately. Role of the IASB The role of the IASB is to develop a single set of high-quality and understandable global accounting standards which require companies to provide clear and comparable information in their financial statements and reports to help the users of the reported information to make economic decisions. It is also the responsibility of the IASB to promote the use of the standards developed and to bring about continuity in accounting standards on a national level (IASBPlus, 2006). However, because the IASB is a private organization it does not have the authority to enforce the standards developed, but rather to suggest implementation to achieve a more global approach and understanding of accounting practices and financial reporting (Hoyle, et al, 2004). Setting such standards is an important activity as the reports produced encompass a wide range of interests for any organization,

More about IASB: Role and History

Open Document