1. INTERNATIONAL ACCOUNTING STANDARD BOARD (IASB)

2. INTERNATIONAL ACCOUNTING STANDARD
BOARD
(IASB)

3. About the IASB
The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standard (IFRSs).
The IASB operates under the oversight of the IFRS Foundation. The IASB was formed in 2001 to replace the International Accounting Standard Committee.

4. Objective Of IASB Promote use of standard
Helpful to the outsider users
Resolving the accounting issues
Materialistic information
Issue accounting standard which help in comparability to take informed decision

5. Mission of IFRS & IASB
Transparency
Accountability
Efficiency

6. STRUCTURE OF IFRS FOUNDATION

7. International Financial Reporting Standards (IFRS Standards) are developed through an international consultation process, the "due process", which involves interested individuals and organisations from around the world.

8. Due Process Comprise Six stages
Setting The Agenda
Planning the Project
Developing And Publishing The Discussion Paper
Developing and publishing the exposure Draft
Developing and publishing The Standard

9. Global Convergence Of Accounting Standards
The international convergence of accounting standards refers to the goal of establishing a single set of high-quality accounting standards to be used internationally,
Convergence is the process of harmonizing accounting standards issued by different regulatory bodies in order to produce a common set of high quality accounting standards to enhance the consistency, comparability and efficiency of financial statements.

10. Arguments for global convergence
Benefits of global convergence :
Comparability of international financial information
Willingness to on the part of investors
Scope for expansion of companies
Cross board mergers and acquisitions
Listing of more and more companies on the stock exchanges around the world

11. Chronology of events in convergence of accounting standards
year
events
1960s
Economic integration and related increase in cross-boarder capital flows.
1962
Eight International Congress of Accountants stressed upon the need for –development of auditing, accounting and reporting standards on international basis
1966
Formation of Accountants International study group by AICPA
1967
First textbook on international accounting titled “International Accounting” was written by ‘professor Geerhard G. Mueller
1973
Creation of IASC –International Accounting Standard Committee& its eight counterparts

12. year Events 1979 Setting of task force by FASB 1987
Making the standards for prescriptive rather than being descriptive
1983
FASB became member of the IASC Consultative group and a Non-voting observer to the IASC
1991
FASB issued first strategic plan
1993
United Kingdom and Australia formed a group referred to as G4.
Later on New Zealand also joined it, the group renamed as G4+1

13. Year
Events
1996
The national securities markets improvement act of 1996 became law
1999
The FASB published “International Accounting Standard Setting : A Vision for the Future”.
2000
SEC issued a Concept on International accounting standards
2001
The IASC reconstituted into IASB
2002
The European Union adopted legislation requiring all the companies to prepare their financial statements using IFRS

14. year
Events
2003
The SEC reaffirmed to FASB as the private sector accounting standard setter for US
2006
The FASB and IASB issued a Memorandum of Understanding describing the progress expected to be achieved towards convergence by 2008
2007
SEC issued the final rule eliminating the reconciliation requirement for foreign registrants that used IFRS issued by IASB
2008
SEC issued a proposed roadmap for public comments regarding use of IFRS by U.S. issuers
2010
SEC again issued a statement in support of global convergence

15. year
Events
2011
The FASB hosted the semi-annual meeting of national standards setters in New York
2013
The IFRS Foundation established the Accounting Standards Advisory Forum to improve cooperation among world standard setter to advice IASB in developing IFRS.

16. IASB And Global convergence
IASB is playing a crucial role in the harmonisation & convergence process & is commmitted towards the development of high quality single set of standards across the globe.
Although IASC was created in 1973 but till 2002, very few countries, that too those, which lacked their own standard setting infrastructure,adopted IASC standards.
It was in 2001, when IASC was reconstituted into IASB, as an independent standard setting board, that the pace of convergence was accelerated.

17. Major Achievements of IASB
IOSCO Endorsement :
First major breakthrough towards convergence was reached in May 2000.
When IOSCO accepted 30 core IAS & recommended its members to allow MNC'so to use IAS for cross border offerings.
This backing by IOSCO led to the acceptance & recognition of IASC as worldwide standard setter.

18. It opened the door for companies using IAS for listings on international capital markets.
In 2001 IASC was reformed into IASB & the US SEC suggested the acceptance of IAS for use in cross border listingso in US, without reconciliation to results under the US-GAAP.

19. EU regulation:
Another milestone towards convergence happened March 2002 when the European Parliament voted overwhelmingly in favour of EU Commission's proposal that by 2005, all listed European companies must prepare consolidated statements in accordance with the standards issued by IASB.
A number of other countries including Canada & Australia also announced their intention to adopt IAS.

20. Co-operation of IASB & FASB
The decision of EU to use IASB standards convinced the FASB to co-operate with the IASB as the regulation was going to cover more than 7000 EU listed companies.
So, FASB joined IASB & announced & signed a MoU inSeptember 2002, to work together in order to design a single set of global accounting rules.

21. At their joint meeting in Oct 2004, IASB & the US FASB decided to add to their respective agendas a joint project to develop a common conceptual framework, based on & built upon, both the existing IASB framework & the FASB conceptual Framework.

22. The two boards reached the following tentative decisions about the approach to the project:
The project should initially focus on concepts applicable to business entity in the private sector & later, the board should consider applicability of those concepts to other sectors.
The project should be divided into phases, with the initial focus being on achieving the convergence of the frameworks & improving particular aspects of frameworks.

23. Phases of the joint project
Phase A: Objectives & Qualitative characteristics
Phase B: Elements & Recognition
Phase C: Measurement
Phase D: Reporting Entity
Phase E: Presentation & Disclosure
Phase F: Purpose & Status
Phase G: Application to not-for-profit entities
Phase H: Remaining issues

24. Standards developed by IASB
STANDARD NO.
YEAR OF ORIGINAL ISSUE OR MAJOR AMENDMENT
IFRS 1
First- time adoption of IFRS
2003
IFRS 2
Share-based payment
2004
IFRS 3
Business combination
IFRS 4
Insurance contracts
IFRS 5
Non current assets held for sale & discontinued operations
IFRS 6
Exploration for & Evaluation of Mineral Resources
2006
IFRS 7
Financial Instruments: Disclosures
2005
IFRS 8
Operating segments
IFRS 9
Financial instruments
2014

25. STANDARD NO.
YEAR OF ORIGINAL ISSUE OR MAJOR AMENDMENT
IFRS 10
Consolidated financial statements
2011
IFRS 11
Joint arrangements
IFRS 12
Disclosures of interests in other entities
IFRS 13
Fair value measurement
IFRS 14
Regulatory Deferral A/c
2014
IFRS 15
Revenue from contracts with customers 2014
IFRS 16
leases
2016

26. International Accounting Standards (IAS)
STANDARD NO.
YEAR OF ORIGINAL ISSUE OR MAJOR AMENDMENT
IAS 1
Presentation of financial statements
2003
IAS 2
Inventories
IAS 7
Statement of cash flow
1992
IAS 8
Accounting policies, change in accounting estimates & errors
IAS 10
Events after the reporting period
IAS 11
Construction contracts
1993
IAS 12
Income taxes
1996
IAS 16
Property, plant & equipment
IAS 17
leases

27. STANDARD NO.
YEAR OF MAJOR AMENDMENT
IAS 18
Revenue
1993
IAS 19
Employee benefits
2004
IAS 20
Accounting for govt. grants & disclosure of govt. assistance
2008
IAS 21
The effect of changes in foreign exchange rates
2003
IAS 23
Borrowing costs
2007
IAS 24
Related party disclosures
IAS 26
Accounting & reporting by retirement benefit plans
1987
IAS 27
Separate financial statements
IAS 28
Investment in associates & joint ventures
2011
IAS 29
Financial reporting in hyperinflationary economies

28. STANDARD NO.
YEAR OF MAJOR AMENDMENT
IAS 32
Financial Instruments: Presentation
2003
IAS 33
Earning per share
IAS 34
Interim financial reporting
1998
IAS 36
Impairment of assets
2004
IAS 37
Provisions, Contingent Liabilities & Contingent Assets
IAS 38
Intangible assets
IAS 39
Financial Instruments: Reporting & Measurement
IAS 40
Investment Property
IAS 41
Agriculture
2008

29. IFRS interpretations STANDARD NO. YEAR OF MAJOR AMENDMENT IFRIC 1
Changes in Existing Decommissioning, Restoration & similar liabilities
2004
IFRIC 2
Member’s shares in Cooperative Entities& similar
IFRIC 4
Determining whether an arrangement contains a lease
IFRIC 5
Rights to interests arising from Decommissioning , Restoration & Environmental Rehabilitation Fund
IFRIC 6
Liabilities arising from Participating in a specific market-Waste Electrical & Electronic Equipment
2005

30. Arrangements for the construction of Real Estate
STANDARD NO.
YEAR OF MAJOR AMENDMENT
IFRIC 7
Applying the restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
2005
IFRIC 10
Interim Financial Reporting & Impairment
2006
IFRIC 12
Service concession arrangements
IFRIC 13
Customer loyalty program mes
2007
IFRIC 14
IAS 19 – The limit on a defined benefit asset, minimum funding requirements & their interactions
IFRIC 15
Arrangements for the construction of Real Estate
2008

31. STANDARD NO.
YEAR OF MAJOR AMENDMENT
IFRIC 16
Hedges of net investment in a foreign operation
2008
IFRIC 17
Distribution of non- cash assets to owners
IFRIC 18
Transfer of assets from customers
2009
IFRIC 19
Extinguishing Financial Liabilities with Equity Instruments
IFRIC 20
Stripping costs in the production phase of a surface mine
2011
IFRIC 21
levies
2013

32. SIC Interpretations Standard no. Year of major amendment SIC 7
Introduction of Euro
1998
SIC 10
Govt. assistance- No specific relation to operating activities
SIC 15
operating leases- incentives
1999
SIC 25
Income taxes-changes in the tax status of an entity or its shareholders
2000
SIC 27
Evaluating the substance of transactions involving the legal form of a lease
SIC 29
Service concession arrangements
2001

33. STANDARD NO.
SIC 3
YEAR OF MAJOR AMENDMENT
SIC 31
Revenue- Barter Transaction involving advertising services
2001
SIC 32
Intangible assets- web site costs

34. OBSTACLES IN GLOBAL CONVERGENCE
HETEROGENEUS ACCOUNTING PHILOSOPHIES BETWEEN COUNTRIES
INTERPRETATION AND SUPERVISION OF IAS/IFRS
TRANSLATION OF THE INTERNATIONAL STANDARDS
FINANCIAL COSTS
POTENTIAL KNOWLEDGE SHORTFALL

35. SUITABILITY TO SMALL AND MIDDLE SIZED ENTITIES AND ACCOUNTING FIRMS
POLITICAL FACTORS
FORCED OBLIGATION
PROBLEM IN COORDINATION
NO FLEXIBILITY