The IASC (International Accounting Standards Committee) is a private, non-governmental group that sets global accounting standards.
Their mission statement is, “body working to achieve uniformity in the accounting principles that are used by businesses and other organizations for financial reporting around the world.”
Its stated mission in its constitution is to:
“formulate and publish in the public interest accounting standards to be observed in the presentation of financial statements and promote their worldwide acceptance,” and “work for the improvement and harmonization of regulations, accounting standards, and procedures relating to the presentation of financial statements.”
The International Accounting Standards Committee (IASC) collaborates with other accounting groups to set international business standards, such as determining what those standards should be and how they should be implemented.
Purpose of the Group
To protect investors and other users of financial information, the IASC is tasked with creating a single set of high-quality, intelligible, enforceable, and universally accepted accounting standards that mandate transparent information.
Roles within the Company
The International Accounting Standards Committee is responsible for keeping tabs on, analyzing, and ideally bettering the norms for reporting financial data.
This group collaborates with others in the accounting industry to set uniform international standards for corporate practices.
When creating new standards, it consults with international user groups to ensure their needs are taken into account.
In addition, IASC is in charge of developing a unified, high-quality set of reporting standards that may be implemented by any organization.
Background on the Group
Sir Henry Benson, a former president of the Institute of Chartered Accountants in England and Wales, was instrumental in establishing the International Accounting Standards Committee in London in June 1973.
United States of America, Australia, Germany, France, Netherlands, Ireland, Canada, Mexico, Japan, and the United Kingdom are only some of the countries whose professional accountancy associations collaborated to construct the committee.
Their intention was to standardize accounting reports despite regional variations. In 1998, 143 accounting associations from a variety of nations joined the group.
International Accounting Standards (IAS) were developed by the Committee from 1973 to 2001, when it was proposed that the Committee be dissolved.
Countries as diverse as India, Australia, New Zealand, Sweden, Germany, Japan, and Russia all embraced what would eventually become the International Financial Reporting Standards (IFRS).
After receiving approval from the International Organization of Securities Commission in March 2001, the International Accounting Standards Board (IASB) took over the committee’s duties in April of that year.
The transformation of IASC into IASB
As the need for the harmonization of international accounting standards with national accounting standards and practices has grown, the International Accounting Standards Committee (IASC) has decided to wind down its operations after 25 years of service.
The International Archaeological Strategy Committee (IASC) improved its structure and strategy in 1997. Meetings were held between 1997 and 1999, and the suggestions were finally adopted that December.
The International Accounting Standards Board (IASB) is the result of a reorganization of the International Accounting Standards Committee (IASC) in the year following the formal implementation of a new IASB Constitution in July 2000.
The International Financial Reporting Standards (IFRS) Foundation, formerly known as the International Accounting Standards Committee Foundation, oversees the IASB.
IASB: A Snapshot
In order to carry on the work of the International Accounting Standards Committee, the International Accounting Standards Board was established.
It’s an impartial group with the overarching goal of becoming the world’s only source for uniformly rigorous, easily understood, and legally binding business standards.
The IFRS Foundation was established in 2001 by the International Accounting Standards Committee (IASC), which is responsible for overseeing it.
The current mission of the IFRS Foundation is to improve corporate transparency through the creation of accounting and financial reporting standards.
IASB Organizational Chart
The International Accounting Standards Board (IASB) is made up of 14 highly-qualified accounting professionals with extensive experience in standard-setting and auditing.
In addition, having a wide range of locations represented is a prerequisite for admission. The Trustees of the IFRS Foundation have properly appointed the members.
Members are in charge of creating and approving interpretations of IFRS Accounting Standards.
IFRS Standards Development
The International Accounting Standards Board (IASB) is in charge of developing the IFRS Standards that are widely adopted by publically reporting businesses.
The board uses its standard-setting procedures, such as those listed below, to develop these guidelines:
Streaming live from our London headquarters, we have public Board meetings;
Documents that will be used as background reading at Board meetings;
Meeting minutes that summarize what was discussed and what was decided; and
We’ve had a lot of feedback letters on our consultation documents.
The process of standardization consists of the following steps:
Discussion of the Agenda
Program for Establishing Standards
The International Accounting Standards Committee (IASC) was among the first organizations to develop and disseminate globally applicable accounting standards.
International Accounting Standards Board (IASB) replaced the International Accounting Standards Committee (IASC) in 2001.
The new establishing body’s stated mission was to fill the void left by the IASC by attempting to harmonize accounting reporting standards worldwide.
The International Accounting Standards Board (IASB) is currently responsible for developing accounting standards that are suitable on a worldwide scale and may be used in any financial market.