16 • 1

CHAPTER

16

INTERNATIONAL FINANCIAL

REPORTING STANDARDS

Paul Pacter

Deloitte Touche Tohmatsu

CONTENTS

16.1 Introduction 2
16.2 Globalization of Capital Markets 2
(a) Cross-Border Capital Raising
Throughout the World 2
(b) Cross-Border Capital Raising
in the United States 3
(c) Cross-Border Securities
Markets 3
(d) Investing via the Internet 3
16.3 Accountants International Study
Group (1966–1977) 3
16.4 Formation of the IASC (1973) 4
16.5 Achievements of the IASC
(1973–2000) 4
(a) Structure 4
(b) “Core Standards” and the
“IOSCO Agreement” 4
(c) Growing Pressure for Global
Standards in the Late 1990s 5
(d) Adoption of IAS Around the
World 5
(e) International Accounting
Standards 6
(f) IASs Reflect a Principles-
Based Approach 6
(g) IASC Framework 8
(h) IASC Due Process 8
(i) Interpretations 8
(j ) Implementation Guidance 8
16.6 Shortcomings of the Old IASC 9
16.7 Restructuring of IASC into IASB 10
(a) Approval of the Proposed
Restructuring 10
(b) Key Responsibilities of the
IASB 10
(c) Specific Objectives of the
IASB 11

(d) IASB Due Process 12

(e) Qualifications of IASB

Members 12

(f) Standards Advisory Council 12

(g) International Financial

Reporting Interpretations

Committee 12

16.8 Who Uses IAS? 13

(a) Europe 13

(b) Australia 14

(c) Russia 14

(d) United States 14

(e) Convergence of IASs and

U.S. GAAP 15

16.9 Benefits of Global Accounting

Standards 15

16.10 Activity of the IASB So Far 16

16.11 Recent Trends in International

Financial Reporting Standards 16

16.12 Model Financial Statements and

Disclosure Checklist 18

16.13 International Forum on

Accountancy Development 18

(a) Endorsement of IASs 19

(b) Annual IAS-National

GAAP Comparisons 19

16.14 International Accounting

Standards for the Public Sector 19

16.15 International Auditing Standards 19

16.16 Planned Certification Program in

IAS/IFRS 20

SOURCES AND SUGGESTED

REFERENCES 20

APPENDIX: CHRONOLOGY OF

IASC AND IASB 20