International Accounting Standards Committee

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The International Accounting Standards Committee ( IASC ) was founded on June 29, 1973 as the predecessor organization of the International Accounting Standards Board in London . It was a private law organization of the professional associations of accountants from Germany , Great Britain and Ireland , France , the Netherlands , Australia , Japan , Canada , Mexico and the USA . Right from the start, the objective was the formulation and publication of international accounting standards and the unification of national accounting standards. Between 1973 and 2000, the IASC published a total of 41 International Accounting Standards , 29 of which are still in force today. The organization was replaced on April 1, 2001 by the International Accounting Standards Board .

development

In order to break away from the professional organization of auditors and to improve efficiency and effectiveness, a reorganization of the IASC was achieved in 2000. An umbrella organization , the International Accounting Standards Committee Foundation and the International Accounting Standard Board responsible for technical work were set up.

The basic organizational structure is now that of the foundation . The International Accounting Standards Committee Foundation (IASCF), a foundation under private law, established on February 6, 2001, has its headquarters in Delaware (USA). The International Accounting Standards Board (IASB), which emerged from the International Accounting Standards Committee, began its work on April 1, 2001. Like its predecessor, it is based in London and is funded by deposits from accounting firms, private financial institutions and industrial companies from around the world and other international and professional organizations.

structure

Following the reorganization of the international regulator, the supporting company of the International Accounting Standards Board is the International Accounting Standards Committee Foundation . It essentially consists of the 22 trustees , the International Accounting Standards Board, the International Financial Reporting Interpretations Committee and the Standard Advisory Council .

Specifically, the twenty-two independent trustees appoint the members of the International Accounting Standards Board , the International Financial Reporting Interpretations Committee and the Standard Advisory Council. Her area of ​​responsibility also includes reviewing the strategy and the effectiveness of the International Accounting Standard Board. Furthermore, they ensure the financing of the foundation with their organs and decide on possible changes to the statutes. It should be noted that the trustees are excluded from the determination of the international accounting standards.

The International Accounting Standards Board is an important body. The board has 14 members, twelve of whom are full-time and two part- time, who perform a wide variety of tasks. The tasks are the elaboration of the international accounting standards. This includes the elaboration of drafts, processing of statements and conducting public discussion on the drafts up to the adoption of the International Financial Reporting Standards , as well as changes to existing international standards. The 41 international standards published by the International Accounting Standards Committee from 1973 to 2000 are called International Accounting Standards, and those published after 2000 are the International Financial Reporting Standards. In addition, the International Accounting Standards Board conducts field studies to check the feasibility of the new International Financial Reporting Standards (IFRS). In carrying out its duties, the International Accounting Standards Board can avail itself of the help of national accounting bodies or other organizations in order to achieve worldwide recognition of the standards.

As part of the reorganization, the International Financial Reporting Interpretations Committee was founded in December 2001 as the successor to the Standing Interpretations Committee. It consists of twelve members with voting rights. In addition, the “Director of Technical Activities” of the International Accounting Standards Board acts as chairman, who has no voting rights on this body. It is your task to publish interpretations in cases in which International Financial Reporting Standards / International Accounting Standards are interpreted differently or incorrectly, or new issues have not been adequately recognized in the previous standards. The committee meets every six weeks and first publishes the interpretations for public discussion as a draft. The final interpretations must then be approved by the Board.

The Standards Advisory Council is a forum for individuals and international organizations. It consists of around 50 members who are supposed to cover a wide range of geographical and professional backgrounds. The possibility of influencing the International Accounting Standards Board and the International Financial Reporting Standards is limited to the role of the adviser to the International Accounting Standards Board with regard to technical and other questions. However, the Council should be consulted on all important projects of the International Accounting Standards Board. In principle, it meets at least three times a year.

aims

In the public interest, the Foundation is committed to developing a single set of high-quality, understandable and enforceable accounting standards worldwide. The intent is to promote transparent and comparable information in company accounts and other financial reports . This supports participants in the world's capital markets in making economic decisions. In addition, the Board works with national accounting bodies or other organizations to bring together the country's own accounting standards into a uniform global standard.

Mission Statement: "The Board is committed to developing, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements. In addition the Board cooperates with national accounting standard setters to achieve convergence in accounting standards around the world. "

The International Accounting Standards Board is solely responsible for issuing new International Financial Reporting Standards and for changing existing International Accounting Standards. The International Accounting Standards published in the past by the International Accounting Standards Committee were adopted by the International Accounting Standards Board and are still valid. The accounting standards newly developed by the International Accounting Standards Board are drawn up as International Financial Reporting Standards.

Since the International Accounting Standards Board is a non-European accounting institution under private law, the International Financial Reporting Standards / International Accounting Standards (IAS) issued by it do not themselves have any legal effect. To achieve this, the international accounting standards must first be incorporated into national law . The application of international accounting standards by companies is voluntary without being incorporated into national law.