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My report on The International Accounting Standard Board (IASB) - frameworks and standards.

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Introduction

´╗┐Financial Accounting assignment My report on The International Accounting Standard Board (IASB) will consist of the following: 1. Conceptual framework: definition of IASB, objectives of IASB framework, advantages and disadvantages of IASB 2. Regulatory Framework: legal framework, international accounting standards, bodies associated with IASC Foundation 3. Reporting on six international accounting standards: IAS1, IAS2, IAS7, IAS10 1AS18, IAS38 Conceptual Framework: The International Accounting Standard Board (IASB) a London-based, privately funded organisation was founded on April 1st 2001. It issued its 'Framework for the Preparation and Presentation of Financial Statements.' known as conceptual framework, which seeks to set and enforce standard for accounting procedures, and to set out the concepts that shape the preparation and presentation of financial statements for external users. The IASB consists of 15 board members, who are selected upon their professional competence and practical experience and their current chairman is Sir David Tweedie. IAS 8 requires that in resolving accounting issues which are not addressed in an International Accounting Standard or International Financial Reporting Standard. Management must use its judgment in developing and applying an accounting policy that results in information that is relevant and reliable. The user groups of financial statements are: present/potential investors, employees, creditors, customers, governments and in all the general public. All of these categories of users rely on financial statements to help them in decision making. IASB states that as investors are providers of risk capital to the entity, financial statements that meet their needs, will also meet most of the general financial information needs of other users. The IASB framework concludes that statements cannot provide all the information that users may need to make economic decisions. ...read more.

Middle

The Standards Advisory Council (SAC) are consulted by the IASB on all projects. They compromise of fifty members and give advice to board and members; they meet at least three times a year with meetings open to public. The SAC advise the Board on agenda decisions and priorities the Board's work and informing them of the views of the organisations and individuals on the Council on major standard-setting projects. International Accounting Standards: Presentation of Financial Statements (IAS1) The objective of IAS 1 (2007) is to prescribe the basis for presentation of general purpose financial statements. IAS1 ensures comparability with the entity's financial statements of previous periods and with the financial statements of other entities. The overall requirements are set out for the presentation of financial statements and guidelines for their structure and minimum requirements for their content. Terminology used is that suitable for profit-oriented entities, and IAS1 cautions that entities that are non-profiting need to amend the descriptions of statements or line items if applying IAS 1. General purpose financial statements are those intended to serve users who are not in a position to require financial reports tailored to their particular information needs. They apply to all general purpose financial statements based on IFRS. The objective of general purpose financial statements is to provide information about the financial position and to meet that objective, financial statements provide information about an entity's: assets, liabilities, equity, cash flows, income and expenses, including gains and losses, contributions by and distributions to owners. IAS 1.10 states complete sets of financial statements include: a balance sheet at the end of the period, an income statement and a statement of comprehensive income a statement of changes in equity for the period, a statement of cash flows for the period and explanatory notes. ...read more.

Conclusion

of revenue will flow to the entity, the amount of revenue can be measured with reliability IAS 18 provides guidance for recognising the following specific categories of revenue: Sale of Goods, Rendering of Services Interest, Royalties, and Dividends Intangible Assets (IAS38) IAS 38 is used when the accounting treatment for intangible assets that are not dealt with specifically in another IFRS. This Standard requires an entity to recognise an intangible assets only if, specified criteria are met. IAS38 specifies how to measure the carrying amount of intangible assets and requires certain disclosures regarding intangible assets. IAS 38 applies to all intangible assets other than: financial assets, exploration and evaluation assets expenditure on the development and extraction of minerals, intangible assets arising from insurance contracts intangible assets covered by another IFRS. The recognition of an item as an intangible asset requires an entity to demonstrate that the item meets: the definition of an intangible asset and the recognition criteria: An asset meets the identifiability criteria in the definition of an intangible asset when it is separable and arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. An intangible asset shall be recognised if, and only if: it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably. Hopefully, after reading this report you will have gained an understanding on The International Accounting Standard Body and the conceptual and regulatory framework concerning the IASB, as well as learning the key provisions associated with the accounting standards: IAS1, IAS2, IAS7, IAS10 1AS18, IAS38. ...read more.

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