International Finance: Objectives of International Accounting Standards, Relevant Accounting Standards, Features of International Finance

This presentation provides detailed information about the objectives of international accounting standards, relevant accounting standards for specific financial situations, and the features of international finance. It also includes a conclusion and references for further reading.

INTERNATIONAL
FINANCE

Table of Content
 Introduction
 Objectives of international accounting standards
 Relevant accounting standard for particular financial
situations
 Feature of international finance and institution of
international financial environment
 Conclusion
 References

Introduction
The international accounting standards have their own
importance for making financial statements reliable and
accurate. The presentation includes detailed information
about objectives of international accounting standards. As
well as about specific accounting standards that are applied
on any particular financial situation. In the end part of
power point presentation feature of international finance is
mentioned.

Objectives of international accounting
standards.
The international accounting standards committee
developed various accounting standards. This committee
came into action on 29th June 1973 with 16 accounting
bodies. Its headquarter in at London. Additionally in year
2001, the international accounting standards were
replaced by international financial reporting standard.

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The main purpose of accounting standard is to bringing
accuracy and effectiveness in the process of accounting.
Herein, below some objectives of accounting standards
are mentioned below which are as follows:
 The first objective is to promote common accounting
standards at world level so that companies can manage
their business at international level.

Relevant accounting standard for
particular financial situations
This is important that accounting standards should be
applied as per the financial situations. There are some
specific financial conditions are mentioned below that
acquires a particular accounting standard such as:
 Valuation of inventories
 Valuation of non current assets
 Application of accounting concept and conventions

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Valuation of inventories- The valuation of inventories is
done under international accounting standard 2.
According to IAS 2, the inventories should be valued at the
lower cost and net realisable value.

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Valuation of non current assets- In the valuation of non
current assets, IAS 16 is applied. This accounting
standard consists various principles for identification of
properties, plants and equipments as assets and for
measuring the carrying amount, depreciation charges.

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Application of accounting concept and conventions- In this
aspect, IAS 1 is applicable. This accounting standard
provides a basis for presenting the financial statements so
that financial statements may become comparable and
accurate.

Feature of international finance and
institution of international financial
The international finance is the relation between two or more
countries in terms of money. It has some features which
are as follows:
 Foreign exchange risk
 Political risk
 Expanded opportunities
 Market imperfection

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Foreign exchange risk- It can be defined as a kind of risk
which arises due to currency fluctuation of two countries.
This is the key feature of international finance because it
impacts to monetary transaction of two nations across the
border. It is essential for companies to consider it before
making transaction with other countries

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Political risk- This is a kind of risk which raises due to
unfavourable relation of countries with each other. It is
the main feature of the international finance. This is so
because it effects the monetary transaction of between
countries.

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Expanded opportunities- This is also an another feature
of the international finance, as per it if companies
perform their activities at global then they have a wide
range opportunities. This is so because companies can
raise their funds by expanding their businesses in those
countries wherein market conditions are favourable.

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Market imperfection- It is also an another feature of
international finance that states that there are a wide
range of difference between countries market conditions.
This is so because each country has different taxation
system, laws and regulations.

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Institution of international financial environment-
 African development bank- This is an institution of
international financial environment which was founded
in 1964 with amalgamation of three entities: African
development development bank, African development
fund and Nigeria trust fund.

Conclusion
As per the above presentation it can concluded that
international accounting standards are very important to
make financial statements more reliable. In the
presentation, objectives of IAS are concluded. Along
with, some international accounting standards are
described such as IAS 1, 16 and 2. Apart from it, features
of financial international finance are concluded.

References
Mirza, A. A. and Ankarath, N., 2012. Wiley International
trends in financial reporting under IFRS: Including
comparisons with US GAAP, China GAAP, and India
accounting standards. John Wiley & Sons.
Velayutham, S., 2014. “Conventional” accounting vs
“Islamic” accounting: the debate revisited. Journal of
Islamic Accounting and Business Research. 5(2).
pp.126-141.

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