The International Accounting Standards Board
The International Accounting Standards Board (IASB) is an independent, standard-setting organisation of the International Financial Reporting Standards Foundation (IFRS Foundation). This organisation was established on April 1, 2001, as a successor organisation to the International Accounting Standards Committee (IASC). It is in charge of establishing International Financial Reporting Standards as well as promoting the adoption […]
The Sarbanes-Oxley Act of 2002 | Accounting and Ethics
The Sarbanes-Oxley Act of 2002 is a significant legislation aimed at increasing accountability and transparency in U.S. corporations. It was implemented in response to notable accounting scandals that shook the business world, with the intention of preventing similar incidents in the future. The Act also placed corporate governance requirements on public companies, such as Sarbanes-Oxley. […]
What are the Various Functions of IASB?
The International Accounting Standards Board (IASB) is a not-for-profit organization that develops and sets accounting standards to be followed by companies in different countries. The IASB’s goal is to establish a common set of financial reporting standards that are globally accepted, making it easier for investors and other stakeholders to compare the financial performance of […]
Volkswagen Scandal – An Accounting Perspective
Every public organisation must be accountable for its operations from a financial, social, and environmental perspective (Crane & Matten 2010). There are many instances of failures due to non-compliance and non-accountability of the business. The impact of such a dilemma is severe for transnational organisations. This is reflected in Volkswagen’s recent ‘diesel dupe’ scandal (VW). […]
What are IFRSs and Their impacts on accounting in Australia?
IFRS are internationally accepted accounting standards that companies around the world need to follow in preparing their accounts. An IFRS account reconciles the financial statements of a company to an international standard by consolidating the income and expenses that are recorded on a monthly basis in each country but reported on a yearly basis. For […]
The Role and Purpose of International Accounting Standards
International Accounting Standards (IAS) offer a standardized framework for the preparation and presentation of financial statements. The standards ensure that financial data is reliable, comparable, and accurate to enable investors, regulators, and stakeholders to make sound decisions. The main aim of International Accounting Standards is to unify cross-border financial reporting, decreasing inconsistencies due to differences […]
What are the Various Objectives and Functions of FASB?
The Financial Accounting Standard Board (FASB) was founded in 1973 as an independent, private-sector, not-for-profit organisation. It establishes accounting principles and accounting procedures. The body of this principle and procedure is called General Accounting-Accepted Principles (GAAP). The Security and Exchange Commission and the Financial Accounting Foundation regulate FASB. Understanding the various objectives and functions of […]