The constant need to make uniform the application of criteria for the preparation and presentation of financial statements, has achieved since the creation of the IASC in 1973, and in 2001 the establishment of the IASB, an important approval of the international accounting community, except cases individuals such as the United States that still assumes a protectionist attitude in its accounting system and adopts the pronouncements issued by the FASB; financial accounting standards council for the united states. This harmonization process involving organizations interested in the standardization of accounting information that meets the needs of information users to develop standardization processes in continuous improvement,By perfecting inconsistencies and looking for coherence between the rules and their structure in search of this purpose, these bodies have created international accounting standards in order to have comparable financial information that allows them to be active in a world without borders for markets, with a common accounting language, which allows you to compare the results and assess management.
International accounting standards (IASB)
IASC; In 1973 IFAC creates a world body responsible for issuing international accounting standards (IASC).
Fundamental purpose
Achieve comparable accounting and financial information
International Accounting Standards (IAS)
IASB; In 2001, the IASC became a foundation, delegated to the IASB the power to regulate (Standards) the presentation of financial reports for companies that fundamentally participate in the capital market (high-quality information, transparency and comparability).
International accounting standards
30 current standards of 41 IAS and 7 IFRS.
They should not be read individually or in isolation.
The correct use and interpretation of the same requires the following process must be read individually or in isolation; preface, framework of concepts, standards, interpretations.
Area of application; International standards must be adopted by:
Capital market
companies Companies that want to participate in global markets
Companies that want access to international credit resources
According to the world bank, companies called "public interest" must adopt international standards. They are
listed on the public stock market
Financial entities and insurance companies
Pension and severance funds
Public service companies
Companies that generate social impact
Total Assets
Gross income
Number of employees
It is agreed that the standards issued by the IASB will be:
IFRS (International Financial Reporting Standards), known in Spanish International Financial Reporting Standards and Norms (IFRS), considered as a technical term.
IFRSs are the standards and interpretations adopted by the International Accounting Standards Board (IASB). Formed by:
- International Financial Reporting standards. Valid as of September 30, 2005: IFRS 1; IFRS 2; IFRS 3; IFRS 4; IFRS 5; IFRS 6; IFRS 7.International Accounting Standards. Valid as of September 30, 2005: IAS 1, IAS 2; IAS 7; IAS 8; IAS 11; IAS 12; IAS 14; IAS 16, IAS 17; IAS 18; IAS 19; IAS 20; IAS 21; IAS 23; IAS 24; IAS 26; IAS 27; IAS 28; IAS 29; IAS 31; IAS 321; IAS 33; IAS 34; IS 37; IAS 38; IAS 39; IAS 40; IAS 41.Interpretations Currently 17 in effect. Originated by the international financial reporting interpretations commitee (IFRIC) or by the previous standing Interpretations Commitee (SIC). IFRIC 1, 2, 3, 4, 5, 5. AND SIC-7, 10, 12, 13, 15, 25, 27, 29, 31, 32.
The harmonization of international accounting standards is the result of the efforts of different organizations in recent decades, noting in each nation the concern about having those that meet the criteria of transparency of accounting information and its comparability. The analysis of the effect of the implementation of IFRS will require the constitution of the following subcommittees that must incorporate, as part of the study, the guidelines of the implementation for the first time as follows:
- Presentation of financial information Consolidation and combination of financial statements Recognition, measurement and disclosure of assets Recognition, measurement and disclosure of liabilities Determination of results Financial instruments Leasing Tax effect Standards for SMEs; This group is in charge of analyzing the standards promulgated by UNCTAD for SMEs and should study the mechanisms for their implementation. Auditing standards; This commission shall carry out the analysis of the mechanisms of implementation of the international auditing standards.
Goals of the IASB
- Developing quality, comprehensive, and compliant accounting standards that require high-quality, transparent, and comparable information within financial statements to assist participants in global capital markets and other users of accounting information in decision-making Economically Cooperate actively with local issuers of accounting standards in order to achieve the definitive convergence of national standards and international financial reporting standards Promote the use and application of such standards
Functions of the IASB
- Issue IFRS, for which you must publish a draft for public exposure, analysis and comments on your main projects, submitted to a public hearing. Conduct field tests in developed and emerging economies to ensure that the standards are practical and applicable in all the environments. Total discretion in the technical agenda and your projects.
Process for the elaboration of a standard
- A special committee is established, with a representative on the Council. The committee identifies and reviews the accounting problems of the topic, for the solution it reviews the conceptual framework and sends a summary with the considerations of the topic to the IASC Council. The special committee prepares and publishes A draft on the considerations received publishes the draft and submits it to public discussion for a period of three months. The special committee reviews the comments received, is forwarded to the council for approval and use as a basis for preparing an IAS project. Approval The draft standard is achieved with two-thirds of the council, and is subject to public discussion for three months, to proceed with the publication of the final standard.
The International Accounting Standards Board - IASB was established in 2001 as part of the International Accounting Standards Committee Foundation - IASCF. The government of the IASCF falls to nineteen Trustees or Senior Management. The responsibilities of the Trustees or Senior Management include the appointment of IASB members and associated councils and committees, as well as ensuring the funding of the organization. The IASB is comprised of twenty full-time and two part-time members. It is the responsibility of the IASB to approve the International Financial Reporting Standards - IFRS and related documents, such as the Conceptual Structure for the Preparation and Presentation of Financial Statements, the drafts in public discussion, and the other documents for discussion.
Structure of the IASB
Summary of the foreword to international financial reporting standards; It covers, among other things:
- The IASB's objectives; The scope of IFRS; The process to follow for the development of IFRS and Interpretations; The policy regarding effective dates; yThe use of English as an official language.
Framework for the preparation and presentation of financial statements
Adopted and Approved by the IASC Council in April 1989 and Adopted by the IASB in April 2001.
- Defines the objective of the financial statements; Identifies the qualitative characteristics that make the information in the financial statements useful; yDefines the basic elements of the financial statements and the applicable concepts for their recognition and measurement in the financial statements.
Conclusions
The IASB achieves its objectives primarily through the development and publication of IFRSs and by promoting the use of those standards in general-purpose financial statements and other financial reporting.
The other financial reporting includes information provided outside of the financial statements that assists in the interpretation of a complete set of financial statements or that improves the ability of users to make efficient economic decisions. In developing IFRSs, the IASB works with national standard-setters to maximize the convergence of IFRS and national standards.
IFRS establishes recognition, measurement, presentation and disclosure requirements in general purpose financial statements related to important transactions and events. They can also set such requirements for transactions and events that arise primarily in specific industries. IFRSs are based on the Conceptual Structure, which addresses the concepts underlying the information presented in the general purpose financial statements. The objective of the Conceptual Structure is to facilitate the consistent and logical formulation of IFRS. The Conceptual Structure also provides a basis for the use of judgment in solving accounting problems.
Bibliography
International Accounting Standards 2001, published by AIC, workshops we are arts, edited by Graficas Dominican Rep.
Mejía Soto Eutimio, Montes Salazar Carlos Albero, Montilla Galvis Omar de Jesús, International Accounting Office, Ecoe Ediciones, May 2006, p 79.87.
IAS PLUS, Practical Guide for IFRS, 2005.
Mantilla B. Samuel Alberto, International Financial Information Standards / Norms IFRS (IFRS), ECOE editions, p 13-21, 233-238.
Samuel Alberto Mantilla B., Ecoe Ediciones, P 13.
EUTIMIO MEJIA SOTO, CARLOSALBERTO MONTES, OMAR DE JESUS MONTILLA. International Accounting, Ecoe Ediciones. P 83
IFRS QUICK GUIDE, IAS PLUS, February 2005
