Q1IFRS - Intermediate Accounting (Kieso)

Question

What organizations are the two key international players in the development of international accounting standards? Explain their role.

Step-by-Step Solution

Answer

The IOSCO (International Organization of Securities Commission) and the IASB (International Accounting Standards Board) are the two key international players involved in the development of international accounting standards.

Step 1: Meaning of FASB

The term Financial Accounting Standards Board refers to the board that regulates the establishment, improvement, and revision of standards with the aim of facilitating companies for accounting and reporting. This helps them learn how to record business transactions and show them to users of financial statements.

Step 2: Role of IOSCO (International Organization of Securities Commission)

The IOSCO plays an important role in:

• Developing and implementing internationally accepted and uniform standards on regulation, oversight, and enforcement.
• Provision of high standards of technical support, education and training, and research to its members and other regulatory bodies.
• Aims to create a robust global capital market and a global regulatory framework.

Step 3: Role of IASB (International Accounting Standards Board)

The IASB plays an important role in:

• Developing in the interest of the public, a set of uniform, high-quality, clearly understandable, enforceable, and International Financial Reporting Standards (IFRS Standards) that are accepted across the globe.

• Serve the general interest of the public by building trust, progress, and financial stability in the global economy in the long term.