Different Accounting Standards Around the World
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Added on 2019-09-22
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This blog explains the importance of accounting standards and their implementation in different countries. It covers US, Indian, and Canadian accounting standards, including Generally Accepted Accounting Principles, International Financial Reporting Standards, and Accounting Standard for Private Enterprises.
Different Accounting Standards Around the World
Added on 2019-09-22
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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 are essential. This concept helps to understand the implementation of different accounting standards in different countries.What are the different accounting standards around the world?Accounting standards are essential so that financial reports will clearly and explaining financial performance. Without accounting standards, the investors, creditors, and stakeholders use the financial statement, would need to learn the rules and regulations of accounting of every company around the world, and the comparison for different accounting standards would be difficult. The major objective of the Accounting Standards is to standardize the varied accounting practices.Recently use current accounting standards named Generally Accepted Accounting Principles,these are generallyaccepted because the regulatory body has set out the accounting profession to accept these standards widely as appropriate. US ACCOUNTING STANDARDS Securities and Exchange Commission The accounting standards adopted by the US SEC ( SECURITIES AND EXCHANGE COMMISSION ) before the declared securities and exchange commission intends to move from the US Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards. Later the progress has been moderate and undetermined. Currently, the commission recognized that there is no longer required push to move from the US companies to IFRS. The two standards will continue existing for the forecasted future. The GAAP principles provide the foundation for standards of accounting and processes. 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 Institute of Certified Public Accountants( AICPA) established the Committee on Accounting procedure from the year 1993 to the year 1959. There was 51 accounting research issued by CAP that dealt with the reason from there they arose. But they had limited success as they didn't develop an entire accounting scenario, 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 31 accounting 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 Accounting Principles 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 was originated as an independent board in 1973 to take over the Generally Accepted Accounting Principles updates and determinations. The board has consisted of seven full-time members, impartial members assure 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 resource where accounts can find out the recent Generally Accepted Accounting Principles. The accounting standard codification (FASB) is the cause of Generally Accepted Accounting Principles acknowledge by the FASB to applied to non-governmental entities. If you want to go for the accounting standard to follow in business, you need to require the Accounting Standards Codification. The codification is effective for the interim and annual period that ends after 15th September 2009. The setting process of FASB included 1)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 board International Financial Reporting Standards(IFRS)International Financial Reporting Standards are known as International Accounting Standards. The globalization emerged, the world has become the local market place and the adoption of accounting with uniformity was important. The IFRS introduce for standardization of accounting over European union. This concept immediately made the standardization to become attractive across the world. From the 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 the committee named as Standing Interpretations Committee Standards.International Accounting Standards Committee
International accounting standards committee was established in the year 1973 to motivate international cooperation in the development of accounting principles worldwide. In the year 2001, the International accounting standards committee was replaced by the International Financial Reporting Standards (IFRS), an independent private enterprise that getting its structure similar to Financial Accounting Standards Board (FASB). Government Accounting Standard Board The financial statement reports of the state and local government sector enterprises are not directly able to compare to that of businesses. In the year 1984, the Government Accounting Standard Board was established to set out the standards for the financial statement report of state and local government. Government Accounting Standard Board was framed after the Financial Accounting Standards Board (FASB)International Accounting StandardsInternational Accounting Standards were issued by the predecessor International Accounting Standards council and inscribed and modified by the International Accounting Standards Board. The International Accounting Standards Board reissues those given standards series where it determines to be appropriate.IAS 1- Financial statement presentation IAS 2- Inventories IAS 3- Consolidated Financial StatementIAS 4- Depreciation accounting IAS 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 errors IAS 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 liabilities IAS 14-Segment reporting
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