C12-7 International Accounting Standards



C12-7 International Accounting Standards

a), and b) Internet URL: (for the web site)

The above Internet address provides access to the International Accounting Standards Board homepage. From the homepage, the user is able to obtain the information necessary for parts a) and b) of the case. Information is obtained through the homepage as follows:

|Part a) |Select About Us from the buttons on the menu bar. Then find the information about The IASB of today and Where we |

|general, |came from to learn about the history of the IASB and how it was a restructuring of the IASC. The role of the IASC |

|and a) |Foundation is described under the second link on the page linked to The IASB of today. Look for the IASC Foundation |

|1. |link on the page entitled The IASB: Who we are. |

|Part a) |Select the About Us button, then select The IASB of today link, and then select the Structure link on The IASB: Who |

|2. |we are page. The members of the IASB are listed under the International Accounting Standards Board link. |

|Part a) and b) |Select the Standards button on the menu bar of the opening page. Then click on the Accounting Standards link to |

|3. |obtain a listing of all the current standards. The actual number of standards outstanding is lower than the number |

| |on the highest standard because of integrations and revisions of several of the standards. A summary of each current |

| |standard may be obtained by clicking on that standard number and title. |

|Part a) |Select About Us again. Click on The IASB of today, and then under The IASB: Who we are, click on IASC Foundation |

|4. |Constitution. The operating policies of the IASB are listed in sections 19 through 33 of the IASB Constitution. |

| | |

|Part a) |On the bottom of the opening page, click on the contact us link to obtain the mailing address and phone number for |

|5. |the IASB. |

A sample two to three-page summary is provided below for the case.

About the IASB —

The International Accounting Standards Board (IASB or the Board), an independent body, was formed in 2001 as a successor group to the International Accounting Standards Committee (IASC) that had been formed in 1973. The IASB had private funding support from a Foundation which was different from the IASC.

Of the fourteen members of the IASB, at least seven members must have formal liaison responsibilities to national standard-setting groups, such as the FASB. The Board has twelve full-time members who are appointed for five-year terms and two part-time members. There is at least one U.S. member on the IASB.

The IASB’s objective is to provide International Financial Reporting Standards (IFRS) and to work toward uniformity or harmonization of accounting standards to be used by businesses or other organizations around the world. The Board has presently published 41 International Accounting Standards (IASs) although some have been superseded. The standards are used, to some extent, in many countries and the International Financial Reporting Standards will be required for publicly held companies in the European Union countries beginning in 2005.

Structure

There are several bodies within the IASB structure. The IASB is the body that makes decisions on accounting principles and then publishes its decisions. Its decisions are published as International Accounting Standards. Other IASB bodies include:

International Accounting Standards Committee Foundation (Trustees) — which among other things raises funds for the IASB and selects the new members to the IASB, as needed.

Standards Advisory Council — provides input into the IASB by bringing forward the suggestions of national standard setters and other interested parties. Also provides input on major projects, agenda decisions and work priorities.

International Financial Reporting Interpretations Committee — which develops interpretations of International Accounting Standards and provides other guidance on financial reporting issues that are not specifically included in promulgated standards.

Standard Setting Process The IASB has a variety of alternatives available to it to obtain input on current matters of concern to the Board. The Standards Advisory Council may provide advice on some projects, the IASB may hold public hearings (although it is not required to do so), or the Board may use field tests to examine the appropriateness of a proposed standard (although again, it is not required to do so). The Board usually then issues an Exposure Draft of the proposed standard and seeks public comment from interested parties.

An International Accounting Standard or International Financial Reporting Standard requires the approval of eight of the fourteen members.

In the U.S., the Securities Exchange Commission requires publicly held companies to follow the FASB’s standards. One issue with the IASB’s standards is that there is no strong enforcement mechanism to require companies to sufficiently follow all the IASs. The IASB’s website does present a listing of Companies using IFRS under the IAS Around the World button in the menu bar.

Other

The mailing address and other related information for the International Accounting Standards Board is listed below:

International Accounting Standards Board

30 Cannon Street

London EC4M 6XH

United Kingdom

Telephone: +44 (0)20 7246 6410

Fax: +44 (0)20 7246 6411

General E-mail: iasb@.uk

Summary of recent IAS

(Note to faculty: For the summary of two recent standards we point you and your students in the direction of the listing of Standards under the Standards button on the opening button bar. Each of the current standards is listed and linked to a summary of that standard. You might choose to assign different standards to groups of your students or to have all your students provide summaries of just the two most recent standards. The summaries presented on the IASB’s site are similar to the summaries of accounting standards on the FASB’s website. As with FARS, the full text of the IASs can be obtained by purchasing either a bound volume or a CD-ROM from the IASB.)

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