Accounting Standards

Introduction

Accounting standards are the established laws regarding financial reporting. International Financial Reporting Standards (IFRS) are intended for a uniform global language for businesses and financial reporting. The intention is that the accounts of company are comprehensible and can be compared across international countries. They are a result of rising international trade and shareholding. They are specificallysignificantfor companies that operate in various countries. They are increasinglysubstituting the many diverse accounting standards. The rules to be adhered by accountants are maintenance of books of accounts which can be compared, arecomprehensible, dependableand relevant for the users whether external or internal.

IFRS was incepted as an attempt to complement accounting across the European Union but the value of management quickly made the concept popular in the world. They are still sometimes referred by the original name of International Accounting Standards (IAS). IAS were developed in the years between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). The new International Accounting Standards Board took over from the IASC in 2001. The responsibility for setting International Accounting Standards was now transferred to them. During its first meeting the new Board acceptedcurrent IAS and Standing Interpretations Committee standards (SICs). The IASB has continued to improve standards and refers to the new standards as International Financial Reporting Standards (IFRS).

Discussion

The IASB, seeks to address a demand for better-quality information that is of value to all users of financial statements by developing high quality accounting standards.  Better-quality information will be of value to financial statements preparators. The IASB assesses the qualities of adding a probable item to its agenda chiefly by position to the investors' needs.

The IASB considers:

The significance to users of the information and the information reliability that could be provided.

whether prevailing guidance is available

the possibility of increasing convergence

the quality of the standard to be designed

Constraints In resources.

To support the IASB in considering its future agenda, its staff is asked to identify, review and raise issues that might require the attention of IASB. Due to change in the IASB's conceptual framework new issues may also arise. In addition, the IASB raises and discusses potential agenda items in the view of feedback from other setters of standard and related parties, staff research, the IFRS Interpretations Committee, the IFRS Advisory Council  the IFRS Interpretations Committee, and  and other recommendations. The IASB receives requests from elements to review, interpret, or amend present publications. The staff consider all such requests, summarise major or common issues raised, and present them to the IASB from time to time as potentials for when the IASB is next considering its agenda.

IASB Meetings

 The IASB's discussions of potential projects and its decisions take place in public IASB meetings adoption of new projects. Before reaching any decision, the IASB consults the IFRS Advisory Council and accounting standard-setting bodies on proposed agenda items and priorities settings. In making decisions regarding its agenda priorities, the IASB also considers factors related to its convergence initiatives with accounting setters of standard.

The IASB's approval of addition of agenda items, as well as its decisions on their priority, is by a simple majority vote at an ...