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International Accounting Standards- IAS - Overview & Functions

you get...

  • Importance of International Accounting Standards - IFRS
  • Definition of International Accounting Standard - IFRS
  • Interpretation of international accounting standards - IFRS
  • Discussing how the International Accounting Standards Board came into being

Some random terms...


International Accounting Standard - IFRS

International Accounting Standard

International Accounting Standards - IFRS : after the Second World War, various countries took the initiative to create joint ventures. As a result, the number of joint ventures has increased significantly.

Naturally, the interests of citizens of different countries coincided with these business relations .

But there is a problem with this argument: if the ledgers are prepared according to the host country's accounting system , online investors may win, but it will be difficult for foreign investors or partners to crack them.

This violates mutual trust and interests. After all, the accounting system at that time was not the same in all countries of the world. This varies from country to country.

As joint ventures grew after World War II, these conditions forced companies and government agencies to have an international accounting system.
Some accounting rules are set in such a way that all countries in the world follow these rules in their books of accounts.

Let me explain the benefits of such a standard... If international accounting standards are followed by country number sixty and an investor wants to invest in a company in that country number thirteen, he can easily do so. Read the company's accounting records, i.e. H. Financial statements and accounts.

However, Canada, France, Japan, Germany, UK, USA, Australia... A total of 16 countries have come together to form an International Accounting Committee or International Accounting Standards Committee, abbreviated as IASC.

International Accounting Standard

The headquarters of IASC is located in London. The International Accounting Standards Board (IAS) publishes accounting standards that are updated annually. They are called International Accounting Standards ( IFRS ).


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