International accounting standard

Essay by adeyinka June 2006

download word file, 8 pages 5.0

International Accounting Standards(IASs) were issued by the International Accounting standard commission (IASC) from 1973 to 2000.The International Accounting Standard Board (IASB) replaced the IASC in setting standards on 1 April 2001.

The IASB has an advisory council and an international financial reporting interpretations committee. The foundation trustees appoint the IASB members, exercise oversight and raise the funds but the IASB has sole responsibility or setting accounting standards.

International Financial Reporting standards (IFRS) are more recently used now which refers to then new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards series issued by its predecessor. Broadly IFRS refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor, International Accounting Standard Committee.

Under the International Accounting Standards (IAS) Regulation, listed companies must prepare consolidated financial statements or individual financial statements if they are not preparing consolidated financial statements for financial years commencing on or after January 1 2005, in accordance with IAS/IFRS (International Financial Reporting Standards).

Nick (2005) states " from January 2005, the International Financial Reporting Standards also referred to as the International accounting standards will come in to force for all listed companies in the European Union and there introduction will affect more than 7,000 companies and there financial information and accounting systems. He went further to say that Hazel Powling, head of international accounting standards implementation at the institute of chartered accountants in England and Wales, said the impact of the accounting changes on IT systems would vary according to each industry. She said financial services companies, one of the heaviest investors in IT, would be one of the hardest hit. To help IT organizations struggling with the new reporting standards, the...