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A - Intro To IASB

The document discusses the formation and structure of the International Accounting Standards Board (IASB) and the development of International Financial Reporting Standards (IFRS). The IASB works to develop a single set of high-quality global accounting standards and is overseen by the IFRS Foundation and Monitoring Board. It outlines the standard-setting process and need for international standards. Additionally, it covers the Philippine context and the country's move to adopt IAS and eventual development of Philippine Financial Reporting Standards (PFRS) that correspond to IFRS.

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Karyl Failma
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71 views

A - Intro To IASB

The document discusses the formation and structure of the International Accounting Standards Board (IASB) and the development of International Financial Reporting Standards (IFRS). The IASB works to develop a single set of high-quality global accounting standards and is overseen by the IFRS Foundation and Monitoring Board. It outlines the standard-setting process and need for international standards. Additionally, it covers the Philippine context and the country's move to adopt IAS and eventual development of Philippine Financial Reporting Standards (PFRS) that correspond to IFRS.

Uploaded by

Karyl Failma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to International Accounting Standards Board

Conceptual Framework and Accounting Standards

 Formation of International Accounting Standards Board (IASB)


International Accounting Standards Committee (IASC) [1983-2000]
International Accounting Standards Board (IASB) [2001]
 April 1, 2001 (Effectivity Date)
 Goal: Create a single set of global accounting standards
 Issue: IFRS Based on Conceptual Framework

 International Accounting Standards Board Structure

Monitoring Board
 Participate in the process for appointing trustees and approving
the appointment of trustees according to the guidelines set out in The trustees will
the IFRSF constitution make an annual
 Review and provide advice to the trustees on their fulfilment of written report to the
the responsibilities set out in the IFRSF constitution. Monitoring Board.

International Financial Reporting Standards (IFRS) Foundation


 Develop a single set of high quality, understandable, enforceable and globally accepted
international reporting standards (IFRS) through its standard-setting body, the IASB
 Promote the use and rigorous application of those standards
 Take account of the financial reporting needs of emerging economies and small and
medium-sized entities (SMEs)
 Bring about convergence of national accounting standards and IFRSs to high quality
solutions.
International Accounting Standards Board (IASB)
 Responsible for:
o The development and publication of the IFRS, including the IFRS for SMEs.
o Approving Interpretations of IFRSs as developed by the IFRS Interpretations
Committee (formerly called the IFRIC).
 The IASB engages closely with stakeholders around the world, including investors,
analysts, regulators, business leaders, accounting standard-setter and the accountancy
profession.

IFRS Advisory Council


 Provides a forum for organizations and individuals with an interest in international
financial reporting to participate in the standard setting process.
 The IASB is required to consult the IFRS Advisory Council in advance of Board decisions on
major projects.
 The trustees of IFRS Foundation must consult the IFRS Advisory Council in advance of any
proposed changes to the Constitution.

International Financial Reporting Interpretations Committee


 Review on a timely basis widespread accounting issues that have arisen within the context
of current IFRS and to provide authoritative guidance (IFRICs) on those issues.

 Accounting Standards - authoritative statements of how particular types of transaction and


other events should be reflected in Financial Statements.

Boards of the
International Financial International
International
Reporting Standards Accounting Standards
Accounting Standards
(IFRS) (IAS)
Committee (IASC)

 IASB Standard-Setting Process

Identify and review the issues.

IFRS Foundation Trustees and IFRS Advisory Council are consulted.


The requirements of
all International
IASB is required to carry out a public consultation.
Financial reporting
standards should be
Advisory group is formed. regarded as
MANDATORY
Exposure draft.

Approval of STANDARD.
 The Need For International Accounting Standards
 From the viewpoint of company management:
o it can cause preparation costs for financial reports that are much higher than necessary.
o business will want to have a uniform system for assessing financial performance in their
operations in different countries.
 Investment analysts and other users of financial reports incur extra costs of analysis when
the reports are prepared according to different standards in different countries.
 Accounting reports will significantly lose credibility if a company reports different profit
numbers in different countries for given transactions.
 Magnitude of cross-border financing transactions, securities trading, and direct foreign
investment is enormous, often in smaller as well as larger countries.

 Philippine Context

 Philippine ASC moves to IAS: Factors in Deciding to move to International Accounting


Standards
 Support of International Accounting Standards (IAS) by Philippine Organizations
 Increasing Internalization of Business
 Improvement of international Accounting Standards (IAS)
 Increasing recognition of International Accounting Standards Board (IASB)
Standards

 Developments in Philippine Accounting Standards (PAS)


 ASC Approves Re-Issuance as PASs of Previously Issued SFASs.
o To update these for consequential amendments arising from adopted
new IFRSs and revised IASs which resulted from the Improvements Project
of the IASB and for editorial amendments made to all existing IASs and;
o To maintain consistency of format and designation of Standards issued by
the ASC.
 ASC Approves Issuance of New and Revised Accounting Standards.
o Accounting Standards issued by the ASC were re-named to correspond
better with the issuances of the IASB.
o SFAS and SFAS/IASs NOT superseded by revised IASs and new IFRSs will
be re-issued as PASs.
 SEC Adopts PFRSs for SMEs.
o The Securities and Exchange Commission (SEC) En Banc resolved to adopt
the Philippine Financial Reporting Standards for Small and Medium
Entities (PFRS for SMEs) as part of its rules and regulations.

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