Standards Committee Update
American Accounting Association
16 August 1998
International Accounting Standards Committee 166 Fleet Street, London EC4A 2DY, United Kingdom
Telephone: +44-171-353-0565 (Direct 427-5903)
OVERVIEW OF IASC
? Independent Private Sector Body
? Began 1973
? Mission Improve and Harmonise
Accounting Standards World-wide
? Location London
? Members 140 Professional Accounting
Bodies in 101 Countries
? 16 Member Board
Australia Canada France Germany
Japan India/Sri Lanka Malaysia
Mexico Netherlands Nordic Federation
South Africa/Zimbabwe Swiss Companies
United Kingdom United States
Financial Executives Financial Analysts
? Observers FASB, EC, IOSCO, China
? Meets 4 times a year, 1 week each
? Advisory Council Oversight, Funding ? Consultative Group Advisory Role ? Standing Interpretations Committee
? Steering Committees Paul Pacter – 60289913.doc- 17 June 2010 2
IASC BOARD Group
140 Member Orgs. Standing
101 Countries Interpretations
Committee Board: 16 Seats
S.C. Proposals Steering
Committees Exposure Draft
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ENVIRONMENT ? Most countries have a national
accounting standards board.
? Regulators also set accounting rules.
? IASC has no enforcement power.
IASC FIRST 10 YEARS
? Codify best practices.
? Standards more descriptive than
IASC SECOND 10 YEARS
? Address more difficult issues.
? Strengthen many original standards.
? Eliminate alternatives.
? Conceptual framework.
IASC CURRENTLY ? IOSCO core standards.
? Recognition in major capital markets.
? Interpretations programme.
? Working relationships with national
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IOSCO AGREEMENT (July 1995)
―The [IASC] Board has developed a work plan that the Technical Committee agrees will result, upon successful completion, in IAS comprising a
comprehensive core set of standards. Completion of comprehensive core standards that are acceptable to the [IOSCO] Technical Committee will allow the Technical Committee to recommend endorsement of IAS for cross border capital raising and listing purposes in all global markets. IOSCO has already endorsed IAS 7, Cash Flow Statements, and has indicated to the IASC that 14 of the existing International Accounting Standards do not require additional improvement, providing that the other core standards are successfully
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EUROPEAN COMMN. POLICY
EC statement of policy, Accounting
Harmonisation: A New Strategy vis-à-
vis International Harmonisation:
―Rather than amend existing
Directives, the proposal is to
improve the present situation by
associating the EU with the efforts
undertaken by IASC and IOSCO
towards a broader international
harmonisation of accounting
standards.‖ Paul Pacter – 60289913.doc- 17 June 2010 6
US SEC STATEMENT (April 1996)
―The Commission is pleased that
the IASC has undertaken a plan to
accelerate its development efforts
with a view toward completion of
the requisite core set of standards
by March 1998. The Commission
supports the IASC's objective to
develop, as expeditiously as
possible, accounting standards that
could be used for preparing
financial statements used in cross-
Criteria to Evaluate IASC Standards
? Comprehensive basis of accounting.
? High quality – comparability,
transparency, full disclosure.
? Rigorously interpreted and applied.
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US CAPITAL MARKETS EFFICIENCY
ACT (October 1996) Paraphrased
It is the sense of the Congress that:
? high-quality international accounting standards would greatly facilitate international financing and enhance the ability of foreign corporations to access US markets; and
? the SEC should enhance its vigorous support for the development of high-quality international accounting standards; and
? the SEC should report to Congress on the outlook for successful completion of a set of international standards that would be
acceptable to the SEC for offerings by foreign corporations in US markets.
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IASC STANDARDS TO DATE
IAS 1 Presentation of Financial Statements IAS 2 Inventories
IAS 4 Depreciation
IAS 5 Financial Statement Disclosures IAS 7 Cash Flow Statements
IAS 8 Reporting Profit And Loss
IAS 9 Research and Development Costs IAS 10 Contingencies and Post-Year-End Events IAS 11 Construction Contracts
IAS 12 Income Taxes
IAS 13 Current Assets and Current Liabilities IAS 14 Segment Reporting
IAS 15 Changing Prices
IAS 16 Property, Plant and Equipment IAS 17 Leases
IAS 18 Revenue
IAS 19 Retirement Benefit Costs
IAS 20 Government Grants and Assistance IAS 21 Foreign Exchange Rates
IAS 22 Business Combinations
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures IAS 25 Investments
IAS 26 Retirement Benefit Plans
IAS 27 Consolidated Financial Statements IAS 28 Investments in Associates IAS 29 Hyperinflationary Economies IAS 30 Financial Statements of Banks IAS 31 Investments in Joint Ventures IAS 32 Financial Instruments Disclosures IAS 33 Earnings Per Share
IAS 34 Interim Financial Reporting IAS 35 Discontinuing Operations
IAS 36 Impairment of Assets
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IAS 37 Provisions, Contingent Liabilities/Assets
IAS 38 Intangible Assets
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