Concept release; request for comment. The FASB believes that the high-quality standards it develops will continue to influence the shape and future direction of international standards, as they have for more than 40 years.
Throughout this effort, we have been steadfast in advocating that capital markets operate most efficiently when investors have access to high quality financial information.
If you considered additional criteria, please identify them.
As a result of the massive increase in international business and the difficulty of reporting accurate universal financial information, initiative has been taken to create a harmonization of accounting standards between nations. What happened to the most innovative company of America.
At the time of this writing, the committee remains consist of: Harmonization of accounting standards has become a highly demanded issue of discussion and debate among accounting professionals around the globe.
In responding to the requests for comment set forth below, please be specific in your response, explaining in detail your experience, if any, in applying IASC standards, and the factors you considered in forming your opinion. Audit requirements may not be sufficiently developed in some countries to provide the level of enhanced reliability that investors in U.
This provincialism is found greatly in developed countries, or countries where accounting is most developed. In fact most developing countries had little chance to evolve accounting systems which truly reflected the needs and circumstances of their own societies.
Rather, the objective of this approach is to protect the interests of U. It cannot be accomplished by the FASB alone; it requires cooperation and agreement among standard setters around the world. Companies in the U. It is also rightly said that the UN exercise has strong political overtones.
If so, which ones. Avoid political pressures on IASB: This also would enhance international comparability for the benefit of investors and other capital market participants. Currently, issuers wishing to access capital markets in different jurisdictions must comply with the requirements of each jurisdiction, which differ in many respects.
Many companies in the European Union submit to International Accounting Standards, and many other corporations reconcile financial information to provide IFRS financial statements as well as U. Although the IASB has no power to require all countries to prepare financial statements under International Financial Reporting Standards, to date the agency can be said to be very influential in the process of harmonization.
Our efforts to develop a global financial reporting framework have been guided by the cornerstone principle underlying our system of regulation -- pursuing our mandate of investor protection by promoting informed investment decisions through full and fair disclosure. Practical Challenges to Achieving Greater Comparability Sincesignificant progress has been made toward achieving greater comparability in accounting standards on an international level.
An analysis of the differences, however, could serve as a useful tool for highlighting what differing information might be provided in financial statements prepared using IASC standards compared with U.
If a company opts for early adoption of Taiwan-IFRS after 1 Januaryit will be required to disclose the adoption plan, and the impact of adoption, in interim and annual financial statements commencing on the decision date.
The financial analysts are of the view that international diversity in accounting practices has enough potentiality to destroy the international flow of capital. Obviously, it is the task of IASC to try and narrow these areas of divergence. Some have even complicated the whole concept, by attempting to substitute harmonization with standardization, as if to mean that the process is the same, rather than making it more compatible.
Market capitalisation is a better measure of the size of a company. In some countries, this law provides great details both on disclosure and on measurement.
In other words, we will continue to lead by setting an example of excellence. Which approach would produce the most meaningful primary financial statements. The main reason the application of the concept of going concern are:. International Accounting Standards Committee (IASC), now International Accounting Standards Board (IASB) came into existence as a result of an agreement by 16 accounting bodies representing 9 nations, i.e., Canada, Australia, France.
Let us make an in-depth study of the meaning, need and major forces of harmonisation of accounting. Meaning of Harmonisation: Harmonisation is a process of increasing the compatibility of accounting practices by fixing the limits to their degree of variation.
The harmonization of accounting standards: The EEC's experience of harmonization in light of the fourth directive. In H. Abbott (Ed.), Standard setting for financial reportingn international conference sponsored by the American Accounting Association with KlynveldMain Goerdler (pp.
). Master Thesis No Harmonization of Accounting Standards -Disclosure Policies and through a comparative analysis of financial reporting practices of some key International Accounting Standards, and the influence of different institutional.
1 1. Introduction The globalization of accounting standards through the development and growth, sinceof International Financial Reporting Standards (IFRS) is one of the. By the s, the notion of harmonization was replaced by the concept of convergence—the development of a unified set of high-quality, international accounting standards that would be used in at least all major capital markets.An analysis of the concept of harmonization of international accounting standards