This blog contains the concept describing the different

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This blog contains the concept describing the different accounting standards around the world. Inpreparation of financial statements, for the financial report making accounting standards areessential. This concept helps to understand the implementation of different accounting standardsin different countries.What are the different accounting standards around the world?Accounting standards are essential so that financial reports will clearly and explaining financialperformance. Without accounting standards, the investors, creditors, and stakeholders use the financialstatement, would need to learn the rules and regulations of accounting of every company around theworld, and the comparison for different accounting standards would be difficult. The major objective ofthe Accounting Standards is to standardize the varied accounting practices.Recently use current accounting standards named Generally Accepted Accounting Principles,these aregenerallyaccepted because the regulatory body has set out the accounting profession to accept thesestandards widely as appropriate.US ACCOUNTING STANDARDSSecurities and Exchange CommissionThe accounting standards adopted by the US SEC ( SECURITIES AND EXCHANGE COMMISSION ) beforethe declared securities and exchange commission intends to move from the US Generally AcceptedAccounting Principles (GAAP) to the International Financial Reporting Standards. Later the progress hasbeen moderate and undetermined. Currently, the commission recognized that there is no longerrequired push to move from the US companies to IFRS. The two standards will continue existing for theforecasted future. The GAAP principles provide the foundation for standards of accounting andprocesses. These accounting standards are maintaining by the FASB and cover the standards.Committee on Accounting ProcedureIn late 1993, motivated by the Securities and Exchange Commission, the Institute of American Instituteof Certified Public Accountants( AICPA) established the Committee on Accounting procedure from theyear 1993 to the year 1959. There was 51 accounting research issued by CAP that dealt with the reasonfrom there they arose. But they had limited success as they didn't develop an entire accountingscenario, instead acted upon particular problems as they arose.Accounting Principle Board
In late 1959, the AICPA replaced by CAP alongside the Accounting Principle board. There was 31accounting research issued by the Accounting principle board that dealt with the reason from there theyarose. Also, four statements until it was dissolved in the year 1973. Generally Accepted AccountingPrinciples arose efficiently from the opinions of the bard. Its structure has been criticized and for severalposition son controversial things. In the year 1971, the wheat committee, chaired by Francis Wheat) wasestablished to determine the board and to change the purpose.Financial Accounting Standards Board (FASB)Financial Accounting Standards Board recommended the American Institute of CPA, the FASB wasoriginated as an independent board in 1973 to take over the Generally Accepted Accounting Principlesupdates and determinations. The board has consisted of seven full-time members, impartial membersassure it works for the best interest of the public. To maintain the proportion, the board is monitored bythe 30 persons FASB council. The board is responsible for the AS codification, a standardize resourcewhere accounts can find out the recent Generally Accepted Accounting Principles. The accountingstandard codification (FASB) is the cause of Generally Accepted Accounting Principles acknowledge bythe FASB to applied to non-governmental entities. If you want to go for the accounting standard tofollow in business, you need to require the Accounting Standards Codification. The codification iseffective for the interim and annual period that ends after 15thSeptember 2009. The setting process ofFASB included1)Identification of current issues of investors.2)Draft the issue agenda and hold the public meetings.3)Publish the exposure draft for the comments of investors4)Initiate new standards and invite feedback from the business.5)Weigh all the responses on a scale and revise accordingly.6)Announcement of the final revision to accounting standard codification.Government accounting standards boardInternational Financial Reporting Standards(IFRS)International Financial Reporting Standards are known as International Accounting Standards. Theglobalization emerged, the world has become the local market place and the adoption of accountingwith uniformity was important. The IFRS introduce for standardization of accounting over Europeanunion. This concept immediately made the standardization to become attractive across the world. Fromthe year 1973 to 2001, IFRS was introduced by the International Accounting Standard Committee.During the first-ever meeting of IAS, the board directed and adopted the subsisting IAS and thecommittee named as Standing Interpretations Committee Standards.International Accounting Standards Committee
International accounting standards committee was established in the year 1973 to motivateinternational cooperation in the development of accounting principles worldwide. In the year 2001, theInternational accounting standards committee was replaced by the International Financial ReportingStandards (IFRS), an independent private enterprise that getting its structure similar to FinancialAccounting Standards Board (FASB).Government Accounting Standard BoardThe financial statement reports of the state and local government sector enterprises are not directlyable to compare to that of businesses. In the year 1984, the Government Accounting Standard Boardwas established to set out the standards for the financial statement report of state and localgovernment. Government Accounting Standard Board was framed after the Financial AccountingStandards Board (FASB)International Accounting StandardsInternational Accounting Standards were issued by the predecessor International Accounting Standardscouncil and inscribed and modified by the International Accounting Standards Board. The InternationalAccounting Standards Board reissues those given standards series where it determines to beappropriate.IAS 1- Financial statement presentationIAS 2- InventoriesIAS 3- Consolidated Financial StatementIAS 4- Depreciation accountingIAS 5-Disclosure of information in financial statementsIAS 6-Accounting respond to price changesIAS 7-Cash flow statementIAS 8-Accounting policies, changes in accounting estimates and errorsIAS 9-Accounting for research and developmentIAS 10-Events after reporting periodIAS 11-Construction of contractsIAS 12-Income statementIAS 13-Presentation of current assets and current liabilitiesIAS 14-Segment reporting
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