International Accounting Standards have become increasingly accepted around the world, a particular case is what happened with the EU, which adopted IFRS, which satisfy the exposed needs, whose fundamental objective is to have a focused accounting strategy.
This harmonization has as its main axis the IASC, currently the IASB, which has been developing a process of standardization of the International accounting standards in continuous improvement, debugging inconsistencies and seeking coherence between the standards and their structure.
Nowadays, it is common to hear about international accounting standards, since the internationalization of business requires having comparable financial information, where companies expand the scope of their business beyond borders, thus generating an interrelation with other entities of the other countries and this causes the need to acquire knowledge of a common accounting language, which allows comparing the results and evaluating management.
According to this, in 1973 a Committee called the IASC (International Accounting Standards Committee) was created, this Committee was created as a professional body, that is, private and worldwide, through “An agreement made by professional organizations of nine countries. One of its fundamental objectives, expressly stated in its constitution, was "to formulate and publish, seeking the public interest, accounting standards that are observed in the presentation of the Financial Statements, as well as to promote their acceptance and observance throughout the world."
This Committee was in charge of issuing the IAS (International Accounting Standards) commonly known as the IAS (International Accounting Standards) which have played a very important role since they are accepted more and more frequently by Companies, Organizations, markets of values and countries.
"The IASC has to guarantee that its standards are used correctly, since it is not only necessary to have good standards, but that they are rigorously applied."
"The IASC declaration of the year 2000, makes a rethinking of the objectives of this organization, orienting itself to the privilege of information for participants in the capital market, in the search for clear, transparent and comparable financial information, allowing the taking of decisions to the different agents involved. ”
According to this rethinking, on April 1, 2001, the IASB was born, this is a private organization based in London, which depends on the (International Accounting Committee Foundation). In the course of the transformation of the IASC by the IASB, changes in its structure arose where the IASB decided to adopt as standards those issued by the IASC (IAS), until they are modified or reformulated. The IAS change their name to International Financial Reporting Standards (IFRS), in Spanish they are called International Financial Reporting Standards (IFRS).
"The most important change is that it goes from a scheme for the preparation and presentation of financial statements (leveraged in the maintenance of capital and in the recognition of income) to a completely different scheme for measuring and reporting on performance. financial (focused on profit or income from various types of transactions) "
Objectives 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 Economic - Cooperate actively with local accounting standard issuers to achieve ultimate convergence of accounting standards worldwide.
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 environments. Total discretion in the technical agenda and your projects.
The IASB structure has the following main characteristics: the IASC Foundation is an independent organization that has two main bodies, the Trustees and the IASB; as well as an Advisory Council (Standards Advisory Council - SAC) and an Interpretation Committee (International Financial Reporting Interpretations Committee - IFRIC). The IASC Foundation trustees appoint the members of the IASB, oversee their work, and obtain the funds necessary for the operation of the entity, while the IASB has sole responsibility for issuing accounting standards.
The IFRIC, formerly the Standing Interptretations Committee (SIC), reviews and issues interpretations of the IFRS and the IASB Conceptual Framework that presents unacceptable and ambiguous treatments with the aim of achieving consensus in the accounting management of these.
The SAC advises the IASB on its agenda and priorities, informs the views of the organizations on the Council on standard-setting projects, advising the IASB and the trustees.
For the year 2.005, relevant changes have arisen in the accounting environment for those users of financial information, this year a large number of European companies opted to make changes in their accounting structure according to regulation 1606 / 2.003, there are 7,000 or 8,000 domiciled companies in the 25 states of the European Union (EU). As previously stated, the European Commission has made a regulation; which obliges to incorporate in the standards of the countries, adopt the and use of IFRS issued by the IASB as long as these are approved by said Committee.
This adoption aims to promote a single market in the EU, for consolidated information in the stock market economy and thus be able to eliminate the barriers that hinder the mobility of citizens and capital in the center of it.
According to everything exposed by the IASB; It has a very broad agenda since it is committed to developing quality standards. “The January 2005 issue of Insight (IASB 2005, 7) indicates the following projects and expected development dates:
a) Various amendments to IAS 39 that are expected to become the norm in 2005.
b) Project whose draft is expected in 2005.
- Consolidation and entities for special purposes. Accounting standards for SMEs.
c) Various projects in collaboration with the FASB, the drafts are expected to be issued in 2005.
d) There is also an agenda of topics that are in the research phase, and that could be incorporated into the active agenda when the IASB and the SAC decide. In it are the following topics.
- Measurement objectives Extractive industries Improvements to the rules on financial instruments. Intangible assets. Investment entities. Joint ventures. Leases. Management report.
In order to promote international approximation, on January 21, 2005, the IASB reached an agreement with the Japanese standards issuer (ASBJ- Acounting Standards Board of Japan), in order to reduce the differences between their respective standards.
Conclusions.
Due to globalization; It is a fact that for companies the analysis of accounting standardization is urgent; since financial information is essential for the decision-making of its different users.
An important aspect in the adoption or adaptation of the International Accounting Standards is to create awareness that the change is not only technical, but that it will generate an economic impact.
The key aspects of accounting systems have advanced in an astonishing way since the international standards that have been issued and modified after 1997, allow the process to have an evolutionary character each time; within this evolution the IASB plays the most important role; since as a private body it has gained more confidence within the financial sector.
It should be taken into account that before implementing or adopting these standards for those countries of emerging economies; They need to be analyzed since a country with a stock market is not the same as a country where its economy is based on a large percentage of SMEs.
Bibliography.
García Diez, Julita and Lorca Fernández Pedro. Accounting harmonization through international accounting standards. In: Contador Magazine No. 10 (April-June 2002); pp. 17.
Editorial. International accounting standards. New direction for the IASC. In: Contador Magazine No. 7 (July-September 2001); p. 9
Mantilla Blanco, Samuel Alberto. International financial reporting standards, Goodbye to Nics. SA Mantilla. Bogotá, May 2.001, pp17
Legis. Colombian accounting regime. Colombia. Sent No. 53, March 2005, pp 697
García Diez, Julita and Lorca Fernández Pedro. Accounting harmonization through international accounting standards. In: Contador Magazine No. 10 (April-June 2002); pp. twenty-one
Begoña Giner Inchausti. The new accounting policy in the EU Something more than a change in the rules. In: Double Part Magazine, Spain. No 165, pp. 21-23.
Notes:
García Diez, Julita and Lorca Fernández Pedro. Accounting harmonization through international accounting standards. In: Contador Magazine No. 10 (April-June 2002); pp. 17
- García Diez, Julita and Lorca Fernández Pedro. Accounting harmonization through international accounting standards. In: Contador Magazine No. 10 (April-June 2002); pp. twenty-one
Editorial. International accounting standards. New direction for the IASC. In: Contador Magazine No. 7 (July-September 2001); p. 9
Mantilla Blanco, Samuel Alberto. International financial reporting standards, Goodbye to Nics. SA Mantilla. Bogotá, May 2.001, pp17
Legis. Colombian accounting regime. Colombia. Sent No. 53, March 2005, pp 697
Begoña Giner Inchausti. The new accounting policy in the EU Something more than a change in the rules. In: Double Part Magazine, Spain. No. 165, pp. 21-23
