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The International Accounting Standards Board (IASB) - The International Corporate Reporting Issues. - Assignment Example
Finance & Accounting
Pages 12 (3012 words)
The International Accounting Standards Board (IASB) develops and issues the International Accounting Standards (IAS), which are also known as International Financial Reporting Standards (IFRS). The International Accounting Standards Committee (IASC) was replaced by the IASB in 2000 (IAS Plus, n.d.)…
Wood and Sangster (2008) highlights that the IASC was initially founded by an Accountant’s International Study Group particularly in 1973. The IASB is an international but independent accounting setting body. Soon after becoming the international accounting standards setting body, the members of IASB finalized and decided to discuss, develop, in the global public interest, a single set of high quality international accounting standards. (About Us, n.d.). However, as IASB is UK-based and its standards are mostly applied to the UK based corporations, the U.S. corporations follow the accounting standards by the Financial Accounting Standards Board (FASB). The globalization and increase in cross border transactions necessited both boards to work closely and issue collective international accounting standards. This process begins the convergence between the IASB and the FASB particularly in 2002 Norfolk agreement, where both regulatory bodies developed a consensus to develop and issues a set of high quality compatible standards (Carmona and Trombetta, 2010). However, there exist various challenges that make it substantially difficult for the both bodies to ensure the global but uniform application of the international accounting standards. ...
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