IAS Essay

“You can’t do business globally and use provincial accounting standards.” This quote from a member of a German bank’s Managing Board reflects the concerns being expressed by institutions from many countries that are united in the IASC (International Accounting Standards Committee). In a world of global enterprises and global capital markets, where people can access the information they need anywhere in the world online and on time, the biggest problem is a lack of transparency and comparability of information. The main objective of International Accounting Standards (IASs) is therefore to provide a global standard for drawing up annual financial statements in line with the general aims mentioned above.

In addition to the international focus of these standards, they aim to ensure that investors can compare data extensively by reporting period and company and thus obtain a sound basis on which to make their decisions. This is why the basic principle behind the IASs is that of providing a true and fair view and of fair
presentation.

These standards dispense with the extremely cautious interpretation of data aimed at protecting creditors – which characterizes the continental European model, for example – in favor of accounting policies that are as up-to-date and accurate as possible. Aims of International Accounting Standards.

“You can’t do business globally and use provincial accounting standards.” This quote from a member of a German bank’s Managing Board reflects the concerns being expressed by institutions from many countries that are united in the IASC (International Accounting Standards Committee). In a world of global enterprises and global capital markets, where people can access the information they need anywhere in the world online and on time, the biggest problem is a lack of transparency and comparability of information. The main objective of International Accounting Standards (IASs) is therefore to provide a global standard for drawing up annual financial statements in line with the general aims mentioned above.

In addition to the international focus of these standards, they aim to ensure that investors can compare data extensively by reporting period and company and thus obtain a sound basis on which to make their decisions. This is why the basic principle behind the IASs is that of providing a true and fair view and of fair
presentation.

These standards dispense with the extremely cautious interpretation of data aimed at protecting creditors – which characterizes the continental European model, for example – in favor of accounting policies that are as up-to-date and accurate as possible.

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