ACCOUNTING.

Accounting



International accounting standards (IAS)

Introduction:

From the year 1973 to 2000, International Accounting Standards Committee (IASC) issued International Accounting Standards (IASs). Later, in 2001, IASC was replaced by International Accounting Standards Board (IASB).

Since then, the revised IAS, projected changes to the other, and replace some of the international accounting standards with new international standards for the preparation of financial reports, and adopted the proposed standards or new specific topics in which there were no international accounting standards earlier. Through committees, each of the Standing Committee and the International Accounting Standards Board also issued Interpretations standards.

International accounting standards (IAS):

In order to reflect, how specific type of transaction or event to be appear in the financial statements, the sets of instruction are stated, in combination formerly named as International Accounting Standards and now as International Financial Reporting Standards (IFRS)

In order to guarantee the protection of investor in any particular listed company, the European Union (EU) is balancing financial statements. With the help of International accounting standards, EU building the confident in the financial market and also facilitating international securities trade for cross-border transactions.

Objective:

The main objective of this principle is the acceptance and appliance of international accounting standards (IAS) in the European Union (EU). This will help in synchronizing the financial information provided by any particular company or companies. This would help in avoiding ambiguity in reporting financial data and also help in comparison of financial statements.

Adaption of International Accounting Standards:

IAS is majorly used in many countries of the world including Australia, Hong Kong, European Union, Malaysia, Pakistan, and GCC countries, South Africa, Singapore and Turkey. More than 113 countries adopts these standard by 2008.Among them 85 countries adopted these standard for domestic companies. Now US are also adopting IAS.

It is widely expected, the global adoption of International Financial Reporting Standards will help investors and other users of financial statements, by reducing the cost comparison of alternative investment, improve the quality of information.  The company will also benefit, because investors will be more willing to provide financing.  However, the ball Ray j has expressed some uncertainty of the overall cost of international standards, he believed that the standards can be lax law enforcement, regional ...