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International Accounting Standards

International Accounting Standards

The International Accounting Standards Board (IASB) was founded on the 1st of April, 2001.   It succeeded the International Accounting Standards Committee (IASC) that was originally founded in London in June 1973.   It is independent and privately-funded and based in London, United Kingdom (UK) (IASCF, 2007).
The IASB is primarily responsible for developing standards for International Financial Reporting.   It also promotes the use and application of the standards developed.   The accounting standards that are developed are of high quality and understandable in order to be used around the world in general financial statements (IASCF, 2007).
The Board members come from nine different countries and all have different backgrounds and strengths that are needed to help develop the standards and promote their use.   There are 14 members and each have one vote.   They are an independent group of experts with a variety of experience.  
The IASB structure is composed of the IASC Foundation which has two main bodies, which consist of the Trustees and the IASB.     There are two councils which are the Standards Advisory Council and the International Financial Reporting Interpretations Committee.
The Trustees of the IASC appoint the IASB members.   They also raise the funds needed to support the organization.   Some of the objectives of the IASC Foundation are as follows:
• Develop high quality, understandable and enforceable accounting standards
• Promote use and application of the standards developed
• To take account of the needs of small and medium-sized entities
But the sole responsibility of the IASB is setting accounting standards.   These standards however are not mandatory and the IASB has no authority to require compliance with these accounting standards.   Because many countries require the financial statements of publicly traded companies be prepared in accordance with the International Financial Reporting Standards (IFRS) they...