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International Accounting Standards Board
Dawn Becker
University of Phoenix- ACC440
Mike Raponi
September 5, 2005
International Accounting Standards Board
History
"The International Accounting Standards Board (IASB) was preceded by the Board of the
International Accounting Standards Committee (IASC), which operated from 1973 until
2001." http://www.lasb.org/about/history.asp . The International Accounting Standards
Board (IASB) was founded on April 1, 2001. Its role is to encourage companies
nationwide, that are doing business with the United States, to adopt a set of financial
statements that are reliable, accurate and compatible with the rest of the world.
Introduction
We live in a rapidly changing and expanding market. World markets have become closely
entwined. Foreigners have an interest in American food, music, television, just as
Americans have a desire to drive and purchase foreign cars, clothing and other items. As
the world economy continues to become globalized, many investment and/or credit
decisions must be made based on analysis and interpretation of financial statements;
however, there is a lack of uniformity in accounting standards between the different
countries. This lack of uniformity has occurred as a result of different legal systems
throughout the different countries, as well as different governmental requirements and
economic environments. The International Accounting Standards Board was established to
formulate and publish international accounting standards that would be used and accepted
worldwide. The subsequent paragraphs will identify the progress that has been made along
with the Boards stance on ethics.
Many of the established accounting standards are driven by tax or other regulatory needs
and are not oriented to the needs of investors. There has been an increase in cross-border
