Definition
The International Accounting Standards Committee (IASC) came into existence in 1973 as a result of an agreement by accounting bodies from several countries. Its primary objectives were:
- Formulation and Publication of Accounting Standards: To create and publish standards that would be applicable globally.
- Promotion of Worldwide Acceptance: To ensure the accounting standards were accepted and implemented by various countries around the world.
- Harmonization of Regulations, Accounting Standards, and Procedures: To synchronize the accounting standards and regulations across different regions to ensure consistency and comparability of financial statements.
During its existence, the IASC published 29 International Accounting Standards (IAS). In 2001, the IASC was superseded by the International Accounting Standards Board (IASB).
Examples
- IAS 1 - Presentation of Financial Statements: One of the standards published by the IASC, which provides guidelines on how financial statements should be presented to ensure clarity and comparability.
- IAS 16 - Property, Plant and Equipment: This standard outlines how entities should account for their property, plant, and equipment, including the recognition, measurement, and depreciation of such assets.
Frequently Asked Questions (FAQs)
What was the primary objective of the IASC?
The primary objective of the IASC was to formulate and publish accounting standards that were globally accepted and to harmonize regulations, accounting standards, and procedures related to the presentation of financial statements.
When was the IASC established and by whom?
The IASC was established in 1973 through an agreement by accounting bodies from numerous countries.
How many International Accounting Standards did the IASC publish?
The IASC published a total of 29 International Accounting Standards (IAS) before its recognition as the global standard-setter ended.
Which organization replaced the IASC?
The International Accounting Standards Board (IASB) replaced the IASC in 2001.
What was the significance of the IASC?
The significance of the IASC lies in its efforts to create and promote global accounting standards, thus ensuring consistency and comparability across international financial statements.
Related Terms with Definitions
- International Accounting Standards (IAS): Standards published by the IASC to provide guidelines on various accounting practices.
- International Accounting Standards Board (IASB): The organization that replaced the IASC in 2001. It continues to develop and promote global accounting standards.
- Financial Statements: Records that outline the financial activities and condition of a business, individual, or entity.
Online References
- International Accounting Standards Board (IASB)
- History of the IASC and IASB
- IAS Plus on IASC and IASB
Suggested Books for Further Studies
- “International GAAP 2021” by Ernst & Young
- “Wiley IFRS 2021: Interpretation and Application of IFRS Standards” by PKF International Ltd
- “Financial Accounting and Reporting” by Barry Elliott and Jamie Elliott
Accounting Basics: “International Accounting Standards Committee (IASC)” Fundamentals Quiz
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