Advance Accounting Essay

884 WordsMar 5, 20134 Pages
Advance Accounting Summary A. History of IASB and the relations to IFRS 1. History of IASB = * Before IASB was initiated, the first international accounting federation / committee were IASC, International Accounting Standard Committee and were started in 1973, followed by the establishment of IFAC International Federation of Accountants, in 1977 * In 1981, IASC & IFAC agreed that all standards would be completely issued by IASC autonomously * Later in 1st April 2001, International Accounting Standard Board was founded. * The role of IASB is to encourage worldwide corporations operating in US to adopt a set of financial statements – reliable, accurate and compatible with other countries which is known know as IFRS and to enforce yet monitor the use of each standards internationally. 2. IFRS = * In April 2001, Framework was adopted by IASB as a guide to the board in developing accounting standards. * The purposes are: To define the objectives of financial statements, Identify characteristics that make the useful information, define the basic elements of financial statements, and Providing concepts of capital maintenance * Framework maintains two major assumptions about IFRS: Accrual basis and going concern * In May 23 2002, IASB issued the Preference to IFRS that addresses the Board’s due process for developing & issuing IFRS and the first IFRS was published in June 2003. 3. Conclusion: IASB is the most recent international accounting board/ committee. They made IFRS and responsible to monitor the usage of IFRS standards all around the globe. B. Hierarchy of IASB 1. Monitoring Board * Responsible in overseeing the IFRS Foundation Trustees, participates in the Trustee nomination process, and approves appointments to the Trustees. 2. IFRS Foundation * Responsible in several area: * Select, approve,
Open Document