International Accounting Standards

by

Mihai Marian

International accounting device. It is impossible to work today in a multinational enterprise or a large enterprise that wants to be quoted on foreign financial markets, to be involved in financial reporting, without realizing how beneficial it would be a single global accounting language. Accounting is far from that goal. Accountants speak different languages and different interpretations give the same events and transactions. Yet a quarter of a century, global accounting language seems to diminish with the creation of the International Accounting Standards (International Accounting Standards Committee: IASC).

On June 29, 1973 representatives of major accounting organizations in Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom, Ireland and the United States signed the London Charter establishing this international organization, whose objective was to develop and publish, in the public interest, international accounting standards, which will be complied with when presenting the annual accounts and financial statements, and to ensure acceptance and application of these standards worldwide. IASC is an institutional work of the accounting profession. Today it brings together 120 organizations from 89 countries accounting, plus six associate members. Organizations refer to the accountants who exercise their profession freely, but also representatives of industry, finance, commerce, education, public services worldwide.

Meanwhile it was created ‘International Federation of Accountants’ (International Federation of Accountants: IFAC), during the organization of the XI International Congress of accounting, which took place in Munich in October 1977.

On the technical level, the two bodies have had to share the act of normalization, audit standards being developed by IFAC and the accounting, the IASC.

IASC rules are not imposed on any person, firm or hard. It advocates not only the quality of their spirit of independence and expertise are developed. They have no legal force of the EU accounting directives. There is only one official version of the IASC standards: one drawn up and presented in English.

IASC is the only organization that provides design and improvement of accounting standards internationally. Even if the ‘United Nations’ (UN) and “Organization of Economic Cooperation and Development’ (OECD) have the power to develop rules, they do not assume ‘de facto’ role and normalized based on the work of IASC.

As the International Accounting Standards are: AS 1 – Presentation of Financial Statements (revised 1997) IAS 2 – Inventories (revised 1993) IAS 7 – Cash Flow Statements (revised 1992), IAS 8 – Net Profit or Loss for the period fundamental errors and changes in accounting policies (revised 1993) IAS 10 – Events after the balance sheet (revised 1999) IAS 11 – Construction Contracts (revised 1993) IAS 12 – Income Taxes (revised 2000) IAS 14 – Reporting Sectoral (revised 1997) IAS 15 – Information reflecting the effects of price changes (revised 1994) IAS 16 – Property and equipment (revised 1998) IAS 17 – Leases (revised 1997) IAS 18 – Revenue (revised 1993), IAS 19 – Employee Benefits (revised 2002) IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance (reformatted 1994), IAS 21 – Effects of Changes in Foreign Exchange Rates (revised 1993) IAS 22 – Business Combinations (revised 1998) IAS 23 – Borrowing Costs (revised 1993) IAS 24 – Related Party Disclosures (revised 1994) IAS 26 – Accounting and reporting of pension plans (reformatted 1994), IAS 27 – Consolidated Financial Statements and Accounting for Investments in subsidiaries (revised 2000) IAS 28 – Accounting for Investments in Associates (Revised 2000), IAS 29 – Financial reporting in hyperinflationary economies (reformatted 1994), IAS 30 – Disclosures in the financial statements of banks and similar financial institutions (recast 1994), IAS 31 – Financial reporting of interests in Joint Ventures (revised 2000) IAS 33 – Earnings per share (revised 1997) IAS 34 – Interim Financial Reporting (revised 1998) IAS 35 – interrupt ongoing activities ( revised 1998) IAS 36 – Impairment of Assets (revised 1998) IAS 37 – Provisions, contingent liabilities and contingent assets (revised 1998) IAS 38 – Intangible Assets (revised 1998) IAS 40 – Investment Property (revised 2000), IAS 41 – Agriculture (revised 2001);

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Tufan Mihai22 ani Student

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