who is responsible for the development of international accounting standards
Who is responsible for the development of international accounting standards?
Answer:
The International Accounting Standards Board (IASB) is primarily responsible for the development of international accounting standards. The IASB is an independent organization that sets accounting standards known as International Financial Reporting Standards (IFRS), which are used by companies and organizations globally. The IASB works towards the development and promotion of high-quality, understandable, and enforceable accounting standards to enhance transparency and comparability in financial reporting.
The IASB operates under a set of due process procedures to ensure that its standards are internationally accepted and result from extensive research, analysis, and consultation with stakeholders. The due process includes activities such as conducting research, issuing exposure drafts for public comment, and holding public hearings.
Additionally, national standard-setting bodies, such as the Financial Accounting Standards Board (FASB) in the United States, play a significant role in the development of international accounting standards. These bodies collaborate with the IASB to form the basis for global accounting standards and work towards convergence between local and international standards.
The development of international accounting standards is crucial in facilitating transparency, comparability, and consistency in financial reporting worldwide. It helps investors, analysts, and other users of financial statements make informed decisions by providing them with reliable and standardized financial information.