International Accounting Harmonization Process of IASB in Financial Organization

Ariet Malaj

doi:10.7176/rjfa/11-17-05

Abstract

The international harmonization of Accounting Standards is a process, which brings international Accounting Standards into some sort of agreement, in order to achieve a common set of Accounting principles. 7000 European companies have to use the International Accounting Standards (IAS) in the European Union (EU), beginning 2005. The IAS are developed from the IASB. Furthermore, the long existing rejection of IAS of the U.S. seems to change. Co-ordination of agendas of the American standard-setting board (Financial Accounting Standard Board (FASB) and the IASB have been announced. We conclude, that the IASB plays a major role in the field of international harmonization. Keywords: Harmonization, International Accounting Standard Board (IASB), International Accounting Standards (IAS), Accounting Standards, International Accounting. Keywords: Harmonization, International Accounting Standard Board (IASB), International Accounting Standards (IAS), Accounting Standards, International Accounting DOI: 10.7176/RJFA/11-17-05 Publication date: October 31 st 2020

Highlights

International businesses are no longer confronted only with Accounting problems, which end at domestic borders
We have eight national standards which are presented to the Board of the International Accounting Standards Committee (IASC)
The IASB needs the support of other bodies to enable the acceptance of the standards, and this was done by the support of IOSCO in 2000

Summary

Introduction

International businesses are no longer confronted only with Accounting problems, which end at domestic borders. All member organizations must accept companies that prepare financial statements in accordance with IAS. On the other hand I think that in order to achieve a harmonized global set of Accounting Standards all participants should accept the changes in their old system. Mixing Accounting Philosophies between countries One effort the IASB will make in the process of international harmonization is the differences between countries.

Results

Conclusion