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- Meaning of International Accounting Standard- IAS
- Definition of International Accounting Standard- IAS
- Explanation of International Accounting Standard- IAS
- Discussion on How the International Accounting Standard Committee Come to Light
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International Accounting Standard- IAS: After the second world war, different countries take the initiative to build up joint venture business. As a result, there was a noticeable increase in joint venture startups.
By nature, the interest of various country's citizen was conjunct to these business concerns.
But a problem arises in this argument that if the books of account are created by following the host country's accounting system, then the netizen investor may be benefited but for the foreign investor or partner, it will be a hard nut to crack.
Thus, mutual trust and interest will be hampered. Because the accounting system at that time was not the same in all countries around the world. It varies from country to country.
That's why after the 2nd world war, when the joint ventures enterprises are grown...such conditions influence the business entities and governments to think to have an international accounting system.
Some accounting standards will remain fixed so that all the countries around the world can follow such rules in their accounting books.
Let me make you clear the benefits of such standards... If the international accounting standards are followed by a sixty number country and an investor wants to invest in a company of that country who is from the thirteen number country, he/she can easily read the companies accounting statements i.e. financial statements and books.
However, for this purpose, Canada, France, Japan, Germany, England, USA, Australia ...Total of 16 countries build together an international accounting committee named International Accounting Standard Committee in brief, IASC.
The headquarter of IASC is located in London. International Accounting Standard Committee- IAS published updated accounting standards every year. These are called International Accounting Standards (IAS).
