Accounting Standards By:Dr.Gholamhossein Davani Member of High Council of Iranian Association of Certified Public Accountants (IACPA)
Who issues standards. • International Accounting Standards (IASs) were issued by the IASC from 1973 to 2000. The IASB replaced the IASC in 2001. Since then, the IASB has amended some IASs and has proposed to amend others, has replaced some IASs with new International Financial Reporting Standards (IFRSs), and has adopted or proposed certain new IFRSs on topics for which there was no previous IAS. Through committees, both the IASC and the IASB also have issued Interpretations of Standards. Financial statements may not be described as complying with IFRSs unless they comply with all of the requirements of each applicable standard and each applicable interpretation.
Accountancy Age timeline: 1969 - 2004 • 1969: Accountancy Age is launched. • DTI inquiry into Robert Maxwell's Pergamon Press causes its takeover by LeaseCo to fall apart. • Touche, Ross, Bailey & Smart becomes Touche Ross • 1970: ICAEW's proposal to merge with ICAS, ICAI and other bodies fails • 1973: Henry Benson appointed first chairman of the International Accounting Standards Committee • 1974: The Consultative Committee of Accountancy Bodies (CCAB) is formed • 1977: IFAC is founded • 1979: Ernst and Whinney is formed • 1980: ACCA's Vera di Palma becomes the first female president of an international accounting body • 1984: Merger of Deloitte, Haskins & Sells and Price Waterhouse falls through
1987: Peat Marwick International and KMG merger forms KPMG • 1989: Arthur Andersen/Price Waterhouse merger collapses in September. • Ernst & Young is formed from Ernst & Whinney and Arthur Young. Touche Ross and Deloitte Haskins Sells merge to form Deloitte & Touche • 1990: The 'Guinness Four' are found guilty of fraud • 1991: Robert Maxwell drowns. BCCI collapses. Polly Peck and Coloroll scandals lead to Ian Cadbury's report on good corporate governance • 1995: Deloitte & Touche creates Deloitte Consulting. Barings collapses • 1996: Ian and Kevin Maxwell cleared of fraud, Coopers & Lybrand's audits of Maxwell companies face JDS investigation. KPMG produces the first annual report by an accountancy firm, which reveals senior partner Colin Sharman earns a total package of £740,000 • 1998: Coopers & Lybrand and Price Waterhouse form PricewaterhouseCoopers. • JDS turns the spotlight on Arthur Andersen in connection with the £50m overstatement of profits by Wickes
2000: European Commission announces in July that it intends to make IAS mandatory from 2005. • The IASC completes its three-year restructuring programme and creates the International Accounting Standards Board, effective from April 2001. • Ernst & Young sells consulting arm to Cap Gemini • 2001: SEC's Enron investigation begins. Big Five issue a joint statement in December insisting that self-regulation remains the best policy following the collapse of Enron • 2002: Andersen's Houston office admits to shredding documents relating to Enron. WorldCom is accused of $4bn fraud, which drags Andersen into another scandal. Andersen UK acquired by Deloitte. SEC implements Sarbanes-Oxley • 2003: Grant Thornton is dragged into €4bn accounting 'black hole' at Parmalat. • Deloitte & Touche rebrands as simply 'Deloitte'. • Higgs and Smith reports take an evolutionary step on from Cadbury and Turnbull • 2004: The Financial Reporting Council is revamped. Inland Revenue merges with Customs & Excise.
Who Sets Accounting Standards in USA? The following institutes work together to create new and amend older standards in order to establish and maintain a common language for communicating financial information: 1-The Financial Accounting Standards Board (FASB), 2-American Institute of Certified Public Accountants (AICPA), 3-Securities and Exchange Commission (SEC), 4-International Accounting Standards Board (IASB) 5-The passage of the Sarbanes-Oxley Act and the creation of the Public Company Accounting Oversight Board (PCAOB) signals many significant forthcoming changes in GAAP and the current standards setting process.
IASB Framework • While not a standard, the IASB Framework for the Preparation and Presentation of Financial Statements serves as a guide to resolving accounting issues that are not addressed directly in a standard. Moreover, in the absence of a standard or an interpretation that specifically applies to a transaction, IAS 8 requires that an entity must use its judgment in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgment, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework. The IASB adopted the Framework in April 2001. It had originally been adopted by the IASC in 1989. Currently, the IASB is working on a Project to Revise the Framework.
What is IFRSs’ • The term International Financial Reporting Standards (IFRSs) has both a narrow and a broad meaning. Narrowly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee. [On this website, consistent with IASB policy, we abbreviate International Financial Reporting Standards (plural) as IFRSs and International Accounting Standards (plural) as IASs.]
IFRS • International Financial Reporting Standards Preface to International Financial Reporting Standards • IFRS 1 First-time Adoption of International Financial Reporting Standards • IFRS 2 Share-based Payment • IFRS 3 Business Combinations • IFRS 4 Insurance Contracts • IFRS 5 Non-current Assets Held for Sale and Discontinued Operations • IFRS 6 Exploration for and Evaluation of Mineral Assets • IFRS 7 Financial Instruments: Disclosures • IFRS 8 Operating Segments Framework for the Preparation and Presentation of Financial Statements • Framework for the Preparation and Presentation of Financial Statements
Which are international accounting standards(IAS)? • IAS 1 Presentation of Financial Statements • IAS 2 Inventories IAS 3 Consolidated Financial Statements Originally issued 1976, effective 1 Jan 1977. Superseded in 1989 by IAS 27 and IAS 28. • IAS 4 Depreciation Accounting Withdrawn in 1999, replaced by IAS 16, 22, and 38, all of which were issued or revised in 1998. IAS 5 Information to Be Disclosed in Financial Statements Originally issued October 1976, effective 1 January 1997. Superseded by IAS 1 in 1997. IAS 6 Accounting Responses to Changing PricesSuperseded by IAS 15, which was withdrawn December 2003 IAS 7 Cash Flow Statements IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 9 Accounting for Research and Development Activities Superseded by IAS 38 effective 1.7.99 IAS 10 Events After the Balance Sheet Date IAS 11 Construction Contracts IAS 12 Income Taxes IAS 13 Presentation of Current Assets and Current Liabilities Superseded by IAS 1. IAS 14 Segment Reporting
Segment Reporting • IAS 15 Information Reflecting the Effects of Changing Prices Withdrawn December 2003 • IAS 16 Property, Plant and Equipment • IAS 17 Leases • IAS 18 Revenue • IAS 19 Employee Benefits • IAS 20 Accounting for Government Grants and Disclosure of Government Assistance • IAS 21 The Effects of Changes in Foreign Exchange Rates • IAS 22 Business Combinations Superseded by IFRS 3 effective 31 March 2004. • IAS 23 Borrowing Costs • IAS 24 Related Party Disclosures
IAS 25 Accounting for Investments Superseded by IAS 39 and IAS 40 effective 2001. • IAS 26 Accounting and Reporting by Retirement Benefit Plans • IAS 27 Consolidated and Separate Financial Statements IAS 28 Investments in Associates • IAS 29 Financial Reporting in Hyperinflationary Economies • IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions Superseded by IFRS 7 effective 2007. • IAS 31 Interests In Joint Ventures • IAS 32 Financial Instruments: Presentation Disclosure provisions superseded by IFRS 7 effective 2007. • IAS 33 Earnings Per Share • IAS 34 Interim Financial Reporting • IAS 35 Discontinuing Operations Superseded by IFRS 5 effective 2005. • IAS 36 Impairment of Assets • IAS 37 Provisions, Contingent Liabilities and Contingent Assets • IAS 38 Intangible Assets • IAS 39 Financial Instruments: Recognition and Measurement • IAS 40 Investment Property • IAS 41 Agriculture
FASB • Since 1973 the FASB has been the organization designated to establish authoritative financial accounting and reporting standards (Statements of Financial Accounting Standards, SFAS) for business and other private-sector entities. Its mission is to be responsive to the entire economic community and to operate in full view of the entire community through a due-process system.
SEC. • Under the Securities and Exchange Act of 1934, the SEC has statutory authority to establish financial accounting and reporting standards for publicly-held companies. Recent accounting-related scandals, such as Enron, prompted the SEC and Congress to get more directly involved in the oversight of the standards setting process and the monitoring of corporate governance. In August 2002, as part of the Sarbanes-Oxley Act, the SEC's Public Company Accounting Oversight Board (PCAOB) was created to crack down on corporate accounting scandals. Authorized to conduct inspections and discipline accountants, the oversight board supplants the self-regulation of CPAs who audit public companies.
IASB • Formed in January 2001, the ISAB replaced its predecessor, the International Accounting Standards Committee (IASC), as the international standards setting body. Looking towards greater formalization of international accounting standards, IASB is structured similarly to the FASB. It is currently the focus of the IASB, in collaboration with the FASB and other accounting focused organizations, to "converge" standards and develop a single, universally accepted set of biding international accounting standards. The IASC, and now IASB, issue a series of standards known as International Financial Reporting Standards (IFRS), formerly called International Accounting Standards (IAS).
IASB, IASCF, and IASC Defined • The International Accounting Standards Board is an independent, private-sector body that develops and approves International Financial Reporting Standards. The IASB operates under the oversight of the International Accounting Standards Committee Foundation. The IASB was formed in 2001 to replace the International Accounting Standards Committee. • IASCF: International Accounting Standards Committee Foundation • The International Accounting Standards Committee Foundation is the independent, non-profit foundation, created in 2000 to oversee the IASB. Click for more information about the IASCF Structure. • IASC: International Accounting Standards Committee • From 1973 until a comprehensive reorganization in 2000, the structure for setting International Accounting Standards was known as the International Accounting Standards Committee. There was no actual "committee" of that name. The standard-setting board was known as the IASC Board.
Description of IFAC • The International Federation of Accountants (IFAC) is an association of national professional accountancy organizations that represent accountants employed in public practice, business and industry, the public sector, and education, as well as some specialized groups that interface frequently with the profession. IFAC works to develop the profession globally and to harmonies professional standards worldwide to enable accountants to provide services of consistently high quality in the public interest across political borders. Currently, IFAC has 155 member bodies and associates in 118 countries, representing over 2.5 million accountants.
International Accounting Education Standards Board • The International Accounting Education Standards Board (IAESB) – formerly the IFAC Education Committee – develops guidance to improve the standards of accountancy education around the world and focuses on two key areas: • The essential elements of accreditation, which are education, practical experience and tests of professional competence; and • The nature and extent of continuing professional education needed by accountants.
International Auditing and Assurance Standards Board • International Standards on Auditing (ISAs) are set by the International Auditing and Assurance Standards Board (IAASB) -- until 2002 known as the International Auditing Practices Committee (IAPC). The ISA on the auditor's report on financial statements requires that the auditor's opinion must clearly indicate the financial reporting framework used to prepare the financial statements (including the country of origin of the financial reporting framework when the framework used is not International Accounting Standards) and state the auditor's opinion as to whether the financial statements give a true and fair view (or are presented fairly, in all material respects) in accordance with that financial reporting framework and, where appropriate, whether the financial statements comply with statutory requirements
AICPA • Originally, the AICPA, the memberships association for CPAs, was the body responsible for defining accounting standards. • 1939-1959 - issues Accounting Research Bulletins (ARB) • 1959-1973 - Accounting Principles Board (APB) issues series of opinions • 1973 - Accounting Principles Board dissolved and standards setting responsibility is transferred to FASB. The AICPA continues its role as authoritative body for establishing auditing standards (Statement of Auditing Standards, SAS) • In 1973, the AICPA shifted its focus to supporting it membership and constituency and bringing to the attention of the FASB and SEC issues that it determined important to the accounting and auditing professional communities. While the AICPA continued issuing auditing standards, this responsibility is now being assumed by the Public Company Accounting Oversight Board (PCAOB), a body created by the Sarbanes-Oxley Act of 2002. The Oversight Board's recent authorization to become directly involved with issues auditing standards could have significant impact on the current standards setting process.
Accounting -- The House of GAAP • The role that accounting standards play in establishing the rules for disclosing both public and private financial reporting assumes levels of authority of "more to less" which guide reliance on and determines the weight of the standards. Understanding this hierarchy is paramount to grasping the meaning of "generally accepted accounting principles" (GAAP), and the many supporting documents. • The concept of the "house of GAAP" was introduced in a 1984 article from the Journal of Accountancy. The author describes and defines the vast universe of accounting standards as a hierarchy structured along the lines of the floor plan of a house. "Like any other structure, the house of GAAP rests on a foundation, in this case a foundation of the basic concepts and broad principles that underlie financial reporting, without which, like a house of cards, the house of GAAP would tumble." 1 • In 199I the AICPA's Auditing Standards Board remodeled the house of GAAP by changing some of the levels of authority of certain accounting pronouncements and distinguishing between the standards defining state and local government entities, established by the Government Accounting Standards Board (GASB) and those for all others, falling under the FASB's jurisdiction. 2 • Using Rubin's visual model of a house, following is the floor plan adapted to the revised hierarchy:
First Floor (Category A) • Constitutes the highest level of GAAP authority. Officially established, authoritative accounting principles; also referred to as authoritative literature or pronouncements. • FASB Statements of Financial Accounting Standards (SFAS) • FASB Interpretations (FIN) which modify, extend, clarify and elaborate on existing SFAS, AICPA Accounting Principles Board Opinions and Accounting Research Bulletins • AICPA Opinions and their Interpretations which have not been superseded • AICPA Accounting Research Bulletins which have not been superseded • Examples: • Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information • APB Opinion No. 18, The Equity Method of Accounting for Investments in Common Stock • Second Floor (Category B)Pronouncements
Second Floor (Category B) • Pronouncements of organizations, composed of expert accountants, that discuss and analyze accounting issues in public for the purpose of establishing accounting principles or describing existing accounting practices that are generally accepted and approved by FASB and GASB and have been exposed for public comment: • FASB Technical Bulletins (TB) • AICPA Industry Audit and Accounting Guides • AICPA Statements of Position (SOP) • Examples: • SOP 97-2, Software Revenue Recognition • FASB Technical Bulletin No. 01-1, Effective Date for Certain Financial Institutions of Certain Provisions of Statement 140 Related to the Isolation of Transferred Financial Assets
Third Floor (Category C)Includes • Includes pronouncements of organizations, composed of expert accountants, organized by FASB, that discuss and debate accounting issues in public forums for the purpose of interpreting and establishing accounting principles or describing existing accounting practices that are generally accepted: • FASB Emerging Issues Task Force (EITF) consensus position • AICPA Practice Bulletins approved by the FASB • Examples: • EITF Issue No. 98-10, Accounting for Contracts Involved in Energy Trading and Risk Management Activities • AICPA Practice Bulletin 14, Accounting and Reporting by Limited Liability Companies and limited Liability Partnerships
Fourth Floor (Category D) • If an accounting treatment is not specified in a source from any of the first three floors, the accountant may consider other accounting literature; the appropriateness of the source depends on its relevance to particular circumstances, the specificity of the guidance, and the general recognition of the author as an authority: • AICPA Accounting Interpretations • FASB Implementation Guides in Q and A format • Unlearned AICPA Statements of Position and Industry Audit and Accounting Guides • Industry practices that are widely recognized and prevalent • Examples: • FASB Special Report, A Guide to Implementation of Statement 125 on Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities • AICPA Accounting Interpretations, Reporting the Results of Operations: Accounting Interpretations of APB Opinion No. 30
Fifth Floor (Category E) • When a generally accepted accounting pronouncement is not covered by Categories A-D, the independent auditor may use other sources of guidance as deemed relevant: • FASB Financial Accounting Concepts (CON) • AICPA Accounting Principles Board Statements • AICPA Issues Papers • Pronouncements of other professionals associations or regulatory agencies • AICPA Technical Practice Aids • Accounting textbooks, handbooks and articles • Examples: • AICPA Issues Paper, Identification and Discussion of Certain Financial Accounting and Reporting Issues Concerning LIFO Inventories • FASB Concept No. 5, Recognition and Measurement in Financial Statements of Business Enterprise
PCAOB • Formed in 2002 to oversee the audit of public companies that are subject to the securities laws in the preparation of informative, fair and independent audit reports. The Board's authority includes: • ..Registering public accounting firms that prepare audit reports for issuers ..Conducting inspections of registered public accounting firms ..Conducting investigations and disciplinary proceedings and impose appropriate sanctions ..Enforcing compliance by registered public accounting firms relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants ..Establishing auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports for issuers • Click HERE to research IASB accounting
CAAS • Generally Accepted Auditing Standards (GAAS). Established by the AICPA, these standards govern the conduct of external audits by public accountants. The Statement of Auditing Standards (SAS) provide guidelines for the auditors' field work and financial reporting. They frame the format and contents of the Auditor's Report or Opinion, which is the formal expression of their examination of a company's financial statements. In May 2003, the PCAOB was given the official go-ahead to assume responsibility for establishing GAAS. It remains to be seen exactly how the PCAOB's new role will play out, its impact on the AICPA's responsibilities, and the form in which the two entities will co-exist.
GAS • Governmental Accounting Standards (GAS). While GAAP defines the accounting for public and private business entities, there also exist standards specific to governmental organizations. Organized in 1984 to establish standards of financial accounting and reporting for state and local governmental entities, the Governmental Accounting Standards Board (GASB), began issues these standards to guide the preparation of external reports for these types of organizations.
Industry Accounting Practices • Some industries have created their won accounting practices to fill gaps not covered by floors 1-4 of GAAP. These practices are often available in print publications issued by the overseeing industry association. On occasion they are also posted on the associations web site. Examples of industries which have adopted their own practices are healthcare and insurance.
Sarbanes-Oxley Act of 2002 • The S-O Act was passed as a direct result of a series of major corporate financial accounting scandals. This legislation directly impacts accountants and attorneys, officers and owners of publicly traded companies, as well as brokers, dealers, investment bankers, and financial analysts. The Act, PL 107-204, established the Public Company Accounting Oversight Board (PCAOB), responsible for registering, monitoring, investigating, and disciplining the activities of public accounting firms, including establishing the guidelines for the conduct of several key auditing procedures no delineating the types of services that CPAs are prohibited from providing to audit clients. The Act additionally sets forth a number of requirements for corporations, their officers and Board members, by redefining working and reporting relationships with their internal audit committee members and public accounting firms, creating changes in internal controls procedures and enhancing financial disclosures.
What is Corporate Governance? • A framework which should ensure that timely and accurate disclosure is made on all matters regarding the corporation, including the financial, performance, ownership, and governance of the company. It relies on mechanisms and rules which ensure the protection of all interest groups and help to build and consolidate the reputation and the market value of the company. • The mechanisms of corporate governance apply to every level of authority in the corporation - Board of Directors, Audit Committee, Compensation Committees and others. The Board of Directors must have strong independent representation. The Audit Committee provides the main point of communication between the external auditors and the shareholders. • Auditors also play a primary role in corporate governance. An important aspect of their work involves independence from any pressure, from either management or shareholders. The terms of engagement of their work, and constant contact with both operating management, boards of directors and related committees will guarantee the independence and reliability of financial statements
CHRONOLOGY OF IASC AND IASB (1) • 1966 • Proposal to create an Accountants International Study Group is agreed to by professional accountancy bodies in Canada, United Kingdom, and United States to develop comparative studies of accounting and auditing practices in the three nations. • 1967 • Accountants International Study Group is created. Precursor to IASC. • 1968 • First AISG study: comparative accounting practices for inventories in Canada, UK, and US. AISG published a total of 20 studies through 1977, when it was disbanded. Some were used by IASC in its early standards.
CHRONOLOGY OF IASC AND IASB (2) • 1972 • Proposal for IASC is put forward by Sir Henry Benson at 10th World Congress of Accountants in Sydney. Discussed with the three AISG countries (Canada, UK, and US). • Further discussions of the Benson proposal including representatives of Australia, France, Germany, Japan, the Netherlands, and Mexico.
International Accounting Standards Committee (IASC) 1973-2000 • 1973Events • Agreement to establish IASC signed by representatives of the professional accountancy bodies in Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom/Ireland, and United States. • IASB opens an office at 3 St. Helen's Place, London. • Paul Rosenfield (US, on secondment from AICPA) is appointed first Secretary of IASC. • IASC holds its inaugural meeting 29 June, London. • Sir Henry Benson elected first Chairman of IASC. • IASC adopts its initial agenda of three technical projects: Accounting Policies, Inventories, Consolidated Financial Statements. • Steering committees are appointed for the above three projects (the first IASC steering committees). • First meeting of an IASC steering committee (IAS 1, Disclosure of Accounting Policies). • IASC holds Board meetings in London
1974 • Events • First associate members of IASC are admitted: Belgium, India, Israel, New Zealand, Pakistan, and Zimbabwe. • IASC holds Board meetings in London (3) and Paris. • Exposure Drafts Published: • E1 Disclosure of Accounting Policies • E2 Valuation and Presentation of Inventories in the Context of the Historical Cost System • E3 Consolidated Financial Statements and the Equity Method of Accounting • Final Standards Published: • None
1975 • Events • Proposal to create an International Federation of Accountants (IFAC) to replace the International Coordinating Committee for the Accounting Profession (ICCAP). • IASC holds Board meetings in London (3) and Montreal. • Exposure Drafts Published: • E4 Depreciation Accounting • E5 Information to be Disclosed in Financial Statements • Final Standards Published: • IAS 1 (1975) Disclosure of Accounting Policies • IAS 2 (1975) Valuation and Presentation of Inventories in the Context of the Historical Cost System
1976 • Events • Joseph P. Cummings of the United States becomes chairman of IASC. • 'Group of Ten' Bank Governors funds an IASC project on bank financial statements. • IASC holds Board meetings in London (2) and Washington. • Exposure Drafts Published: • E6 Accounting Treatment of Changing Prices • E7 Statement of Source and Application of Funds • E8 The Treatment in the Income Statement of Unusual Items and Changes in Accounting Estimates and Accounting Policies • Final Standards Published: • IAS 3 (1976) Consolidated Financial Statements • IAS 4 (1976) Depreciation Accounting • IAS 5 (1976) Information to be Disclosed in Financial Statements
1977 • Events • IASC Constitution is revised to add to two seats to the IASC Board (in addition to the 9 founder countries), bringing the total to 11. Nine votes are required to adopt a Standard, giving the 9 founder members substantial control. Also, this revised Constitution identified the standards-setting body as the 'Board' of the IASC, not a 'committee'. • IFAC is formed. AISG is disbanded. • IASC holds Board meetings in London, Amsterdam, and Edinburgh. • Exposure Drafts Published: • E9 Accounting for Research and Development Costs • E10 Contingencies and Events Occurring After the Balance Sheet Date • E11 Accounting for Foreign Transactions and Translation of Foreign Financial Statements • E12 Accounting for Construction Contracts • Final Standards Published: • IAS 6 (1977) Accounting Responses to Changing Prices • IAS 7 (1977) Statement of Changes in Financial Position
1978 • Events • John A. Hepworth of Australia becomes chairman of IASC. • South Africa and Nigeria join Board, increasing Board size to 11. • IASC holds Board meetings in London (2) and Perth (Australia). • For the first time, IASC rejects a proposed standard (based on E11, Accounting for Foreign Transactions and Translation of Foreign Financial Statements), and a new steering committee is appointed for a fresh start. • IASC begins discussions with the International Federation of Accountants (IFAC) on 'mutual commitments' regarding the relationship between the two bodies. • Exposure Drafts Published: • E13 Accounting for Taxes on Income • E14 Current Assets and Current Liabilities • Final Standards Published: • IAS 8 (1978) Unusual and Prior Period Items and Changes in Accounting Policies • IAS 9 (1978) Accounting for Research and Development Activities • IAS 10 (1978) Contingencies and Events Occurring After the Balance Sheet Date
1979 • Events • Allan V. C. Cook becomes secretary of IASC. • IASC meets OECD working group on accounting standards. • IASC holds Board meetings in London (2) and Mexico City. • Exposure Drafts Published: • None • Final Standards Published: • IAS 11 (1979) Accounting for Construction Contracts • IAS 12 (1979) Accounting for Taxes on Income • IAS 13 (1979) Presentation of Current Assets and Current Liabilities
1980 • Events • J. A. (Hans) Burggraaff of Netherlands becomes chairman of IASC. • IASC publishes a discussion paper on bank disclosures (project funded by 'Group of Ten' Bank Governors). • IASC holds Board meetings in London, Berlin, and Dublin • United Nations Intergovernmental Working Group on Accounting and Reporting meets for first time. IASC proposes a cooperative working arrangement with UN group. • Exposure Drafts Published: • E15 Reporting Financial Information by Segment • E16 Accounting for Retirement Benefits in the Financial Statements of Employers • E17 Information Reflecting the Effects of Changing Prices • E18 Accounting for Property, Plant and Equipment in the Context of the Historical Cost System • E19 Accounting for Leases • Final Standards Published: • None
1981 • Events • Geoffrey B. Mitchell becomes Secretary of IASC. Title is changed to Secretary-General during his tenure. • IASC Consultative Group is formed to advise IASC on agenda projects and priorities. Consultative Group members represent both accounting and non-accounting organizations with an interest in financial reporting (stock exchanges, bankers, lawyers, business, unions, government, United Nations, World Bank, OECD, etc.). First meeting in October 1981. • IASC begins a joint project on accounting for income taxes with standard setters from the Netherlands, UK, and USA. • IASC holds Board meetings in London (2) and Tokyo. • Exposure Drafts Published: • E20 Revenue Recognition • E21 Accounting for Government Grants and Disclosure of Government Assistance • E22 Accounting for Business Combinations • Final Standards Published: • IAS 14 (1981), Reporting Financial Information by Segment • IAS 15 (1981), Information Reflecting the Effects of Changing Prices
1982 • Events • Stephen Elliott of Canada becomes chairman of IASC. IASC and IFAC make mutual commitments. The IASC Board is expanded to up to 17 members, including 13 country members appointed by the Council of IFAC and up to 4 representatives of organizations with an interest in financial reporting. All members of IFAC are members of IASC. IFAC recognizes and will look to IASC as the global accounting standard setter. Special constitutional status of the 9 founder members of IASC is eliminated. • IASC holds Board meetings in London (2) and Amsterdam. • Exposure Drafts Published: • E23 Accounting for the Effects of Changes in Foreign Exchange Rates • E24 Capitalization of Borrowing Costs • Final Standards Published: • IAS 16 (1982) Accounting for Property, Plant and Equipment • IAS 17 (1982) Accounting for Leases • IAS 18 (1982) Revenue Recognition
1983 • Events • Italy joins IASC Board. • Expanded IASC Board under the revised Constitution takes effect. • IASC holds Board meetings in London, Edinburgh, and Paris. • Title of senior staff executive changed from 'Secretary' to 'Secretary-General'. • Exposure Drafts Published: • E25, Disclosure of Related Party Transactions • Final Standards Published: • IAS 19 (1983) Accounting for Retirement Benefits in the Financial Statements of Employers • IAS 20 (1983) Accounting for Government Grants and Disclosure of Government Assistance • IAS 21 (1983) Accounting for the Effects of Changes in Foreign Exchange Rates • IAS 22 (1983) Accounting for Business Combinations
1984 • Events • Taiwan joins IASC Board. • IASC holds a formal meeting with the US Securities and Exchange Commission. • IASC holds Board meetings in London, Toronto, and Düsseldorf. • Exposure Drafts Published: • E26 Accounting for Investments • Final Standards Published: • IAS 23 (1984) Capitalization of Borrowing Costs • IAS 24 (1984) Related Party Disclosures
1985 • Events • John L. Kirkpatrick of UK becomes chairman of IASC. • David Cairns becomes Secretary-General of IASC. • IASC participates in an OECD forum on global accounting harmonization. • IASC responds to SEC proposals for a multinational prospectus. • IASC holds Board meetings in London, Rome, and New York. • Exposure Drafts Published: • E27, Accounting and Reporting by Retirement Benefit Plans • Final Standards Published: • None
1986 • Events • Financial analysts (International Coordinating Committee of Financial Analysts Associations) get a seat on the IASC Board. • IASC co-sponsors a conference with New York Stock Exchange and International Bar Association on the globalization of financial markets. • IASC holds Board meetings in London, Dublin, and Amsterdam • Exposure Drafts Published: • E28 Accounting for Investments in Associates and Joint Ventures • Final Standards Published: • IAS 25 (1986) Accounting for Investments
1987 • Events • Georges Barthes de Ruyter of France becomes chairman of IASC. • IASC begins its Comparability and Improvements Project. Objective is to reduce or eliminate alternatives and make standards more detailed and prescriptive rather than flexible and descriptive of current practice. • International Organization of Securities Commissions (IOSCO) joins the Consultative Group and supports the Comparability project. • IASC publishes its first Bound Volume of International Accounting Standards, containing the standards extant at 1 September 1987. • IASC holds Board meetings in Sydney and Edinburgh. • Exposure Drafts Published: • E29 Disclosures in the Financial Statements of Banks • E30 Consolidated Financial Statements and Accounting for Investments in Subsidiaries • E31 Financial Reporting in Hyperinflationary Economies • Final Standards Published: • IAS 26 (1987), Accounting and Reporting by Retirement Benefit Plans
1988 • Events • Jordan, Korea and the Nordic Federation (representing accounting bodies in Norway, Denmark, Sweden, Finland, and Iceland) join the IASC Board, replacing Mexico, Nigeria, and Taiwan. • Financial instruments project started in conjunction with Canadian Accounting Standards Board. • IASC publishes a survey on the use of IAS. • FASB joins the Consultative Group and becomes an observer at the IASC Board table. • IASC holds Board meetings in Düsseldorf, Toronto, and Copenhagen. • Exposure Drafts Published: • Exposure Draft: Framework for the Preparation and Presentation of Financial Statements • Final Standards Published: • None