DipIFRS ACCA course - IASB Conceptual Framework No.1

IASB Conceptual Framework Concepts Statements

Quick introduction to standards:

International Financial Reporting Standards (IFRS) are designed as a common global language for business matters so that company accounts are understandable and comparable across international borders. It is the result of increasing international participation and trade. IFRSs are especially important for companies with dealings in many countries. It gradually replaces many different national accounting standards.

IFRS began as an attempt to harmonize accounting across the European Union but the value of coordination quickly made the concept attractive around the world. Sometimes called by the original name of International Accounting Standards - IAS.

International Accounting Standards (IAS) were issued between 1973 and 2001 .. 41 standards .. before ..

Board of Directors of the International Accounting Standards Committee - IASC

On April 1, 2001 until now, the new International Accounting Standards Board (IASB) assumed responsibility for setting international accounting standards from the International Accounting Standards Committee (IASC).

During its first meeting, the new council adopted:

1. Current International Accounting Standards (IAS).

2. Standing Interpretations Committee standards - SICs.

The International Accounting Standards Board also continued to develop standards now called International Financial Reporting Standards (IFRS) .. 17 standards

Finally, it can be said that each of:

1. Standards.

2. The Interpretations Committee.

They are the resources that companies depend on ... specifically financial accountants ... in establishing accounting policies.

The purpose of the framework is:

1. Assist the Board to develop IFRS Standards in developing and reviewing international standards for financial reporting that are based on consistent concepts.

2. Helping preparers of financial reports develop consistent accounting policies for areas not covered by a standard or where there is an accounting policy choice.

3. Assist all parties in understanding and interpreting IFRSs.

So that the standards are compatible and consistent, and there is no conflict between the standards, in order to produce useful financial information for both:

1. Investors.

2. The lenders.

3. And other creditors.

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