International Accounting Standards Master Essay

International Accounting Standards Master - Essay Example The International Accounting Standards Board (IASB) replaced the IASC which had stopped operations in April, 2001(Schioppa,2004). The new replacement board concentrated its efforts developing the International Financial Reporting Standards starting in the year 2001. Furthermore, the International Accounting Standards Board in London is a privately-funded and independent accounting standard-setter that headquartered in London, United Kingdom(Buthe,2005). They say that accounting is an art. Meaning, any accounting data can be written in whatever style the bookkeeper or accountant wants provided information is understood. In summary, the International Accounting Standards (IASs) had been issued by the IASC from 1973 to 2000. Also, the International Accounting Standards Board had been replaced by the International Accounting Standards Council in 2001. Since then, the IASB has amended some IASs, it had inclusively proposed to amend other IASs, it had proposed to replace some IASs with new International Financial Reporting Standards (IFRSs), and had adopted or even proposed certain new IFRSs on topics for which there was no previous IAS. With the help of their separate committees, both the IASC and the IASB had issued Interpretations of Standards. Finally, the financial statements must comply with all of the requirements of each applicable standard and each applicable interpretation to be described as complying with IFRSs. C) International Financial Reporting Interpretations Committee (IFRIC) in relation to International Accounting StandardsIn terms of interpreting the international accounting standards, the International Accounting Standards Board has replaced the IASC's Standing Interpretations Committee (SIC) with the the International Financial Reporting Interpretations Committee (IFRIC). The replacement took place in the year 2001. This committee is mandated to reviews or not. on a regular basis inside the context of current International Financial Reporting Standards (IFRSs) and the IASB Framework, all accounting issues that will likely receive differing or unacceptable treatment in the non- appearance of authoritative guidance. Its view is to reach consensus on the appropriate accounting treatment. When developing its interpretations of financial accounting theory, the IFRIC gets feedback as it works hand in hand with similar national committees from many countries in the world. The IFRIC makes technical decisions that are taken at sessions where the public is invited to observe. The bottom line here is that the international accounting standards must be distributed and explained to all countries in the world for understandability and speed(Buthe,2005) As a result of the virorous efforts of The three accounting bodies above, the existing procedure for setting international accounting standards is now well established. Since accounting is the language of business, then international accounting standards insures that more nations understand each other when scrutinizing the balance sheet, income statement and statement of cash flows. II. Why is the development of International