Question

Evaluate the development of new accounting and accounting standards by the International and local Accounting Standards Board. (Total 25 marks)

Answer 1

International Accounting Standards (IAS) are older accounting standards issued by the International Accounting Standard Board (IASB), an independent international standard setting body based in London.

International Accounting Standards (IAS) were the first international accounting standards that were issued by the International Accounting Standards Committee (IASC), formed in 1073.

The main goal is same as today, to increase the transparency, trust in financial reporting to foster trade and investments. All these measures help in compare the businesses around the world.

Globally compared accounting standards promote transparency, efficiency in financial markets and accountability. This enables investors and other market participants to make sound decisions related to investments in other countries company and what are the risk factors involved in it.

Universal standards reduces the compliance cost for international companies who are operating in various countries and helps in ease of doing the business.

There has been significant progress towards developing a single set of high-quality global accounting standards since the IASC was replaced by IASB.