For example, Mexico will adopt IFRSs to be standard from 2012 for all listed companies whereas Canada and Korea are expected to introduce by 2011. Accounting standards helps in overcoming this problem. Robert A. Vallejo is a partner in the assurance (audit) practice of the public accounting firm PricewaterhouseCoopers (PWC) 5.From 2006 until 2008, he served as a consulting partner in PWC’s national professional services group in Paris, France. Accounting is the language of business. International Financial Reporting Standards (IFRS) are practically principle-based standards interpre­tations and the framework which were adapted by the International Accounting Standard Boards. Accounting Standards provides rules for standard treatment and recording of transactions. The International Accounting Standards Committee (IASC) was established in June 1973 by accountancy bodies representing ten countries. The International Accounting Standards Board (IASB), which is ultimately overseen by a multinational group of economists and accountants, determines the guidelines in the IFRS. In recent years, due to the growth of multinational corporations, certain international standards are required in order to avoid confusion relating to the financial status and operating results. Thus, the principles which are formulated or developed in this regard and which are approved by the specialised bodies are known as “Accounting Standards.” Practically, it will help us to assess the progress or otherwise of a firm after comparing the actual performances with the standard. After reading this article you will learn about: 1. These were looked to by many national accounting standard-setters in developing national standards. (b) The firms are not allowed to maintain and present their accounts according to their own will or choice or cannot prepare report of financial statements for various interested groups. The Hon Minister for State, Ministry of Corporate Affairs, Mr. Salman Khursheed, had said that the min Indian is try had met its commitments of starting IFRS-Compliant reporting by 2011. are available through accounting. Our page for each pronouncement has a full history of the pronouncement, its development, amendments and other information. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) both work toward the goal of developing and enforcing financial reporting standards for publicly held companies. MNCs need to comply with the local standards of their country of origin, which will differ in some respect from the standards required in other countries. This creates uniformity among accounting users and the accounting principles that are used by companies, as financial statements of companies are either identical in format or close to it. Needless to say that the International Accounting Standards Board (IASB) took the responsibility to set the various International Accounting Standards on 1st April 2001 from the IASC. There is need of Accounting Standards because it plays an important role in preparing good quality and accurate financial statements. Mr. S. Khursheed had announced a three phase convergence schedule in Jan. 2011: The listed companies, including those on overseas exchanges and with a Net worth of Rs. As such, it becomes necessary to develop some GAAP (Generally Accepted Accounting Principles) while preparing the financial statements by which the language of the business can be communicated to the users. 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(Ind AS) 1: Presentation of Financial Statements, (Ind AS) 8: Accounting Policies, Changes in Accounting Estimates and Errors, (Ind AS) 10: Events after the Reporting Period, (Ind AS) 16: Property, Plant and Equipment, (Ind AS) 20: Accounting for Government Grants and Disclosure of Government Assistance, (Ind AS) 21: The Effect of Changes in Foreign Exchange Rates, (Ind AS) 27: Consolidated and Separate Financial Statements, (Ind AS) 29: Financial Reporting in Hyperinflationary Economics, (Ind AS) 32: Financial Instruments: Presentation, (Ind AS) 37: Provisions, Contingent Liabilities and Contingent Assets, (Ind AS) 39: Financial Instruments: Recognition and Measurement, (Ind AS) 101: First-Time Adoption of Indian Accounting Standards, (Ind AS) 105: Non-Current Assets held for Sale and Discontinued Operations, (Ind AS) 106: Exploration for and Evaluation of Minerals Resources, (Ind AS) 107: Financial Instruments: Disclosure. 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