International accounting standards allow companies to speak the same language when reporting their financial information, letting other companies, investors and the general public more fully understand and compare financial information. The International Accounting Standards Board (IASB) developed a common set of global accounting standards to accomplish just that.
The International Accounting Standards Board works with other standard-setters to achieve standards adoptable by major companies around the world.
More and more professionals recognize an international accounting standard as being important. Before you consider adopting those standards in your business, consider the following international accounting standards information:
1. The United States is the only country that requires those countries wishing to sell securities to prepare financial statements in compliance with the GAAP (Generally Accepted Accounting Practices). Therefore, it is more costly for a foreigner to raise capital in the U.S.
2. Preparing financial statements with more than one set of accounting standards can raise questions about your credibility. By using only one standard, such as an international accounting standard, you can cut down on differences in operations, cash flow and other areas.
3. Standards for financial statements can also vary greatly from one country to the next. Some experts say that the U.S. requirements have driven away foreign markets such as German companies listed on the stock market. Standards for international accounting could remedy that situation.
Action Steps
The best contacts and resources to help you get it done
Read international accounting articles
Research and new opinions on international accounting standards revolve constantly. Keep up to date by keeping informed.
I recommend: The U.S. shift to international accounting standards is to be expected, according to an article provided by
PricewaterhouseCoopers International. Browse the list of research topics available from
Accounting Research Manager; then sign up for a free
14-day trial to keep informed. Research is updated daily.
Participate in international accounting training
Hands-on training in standards for international accounting can put you on top of your game.
I recommend: Learn international accounting standards through
IA Seminars. Browse the list of available courses available. Or for direct training, go straight to the source. The International Accounting Standards Board offers
PowerPoint presentations,
conferences and
workshops.
Utilize online tools to help you learn international accounting standards
The Internet provides a variety of resources you can use to learn and apply international accounting standards.
I recommend: Subscribe to the
Deloitte Technical Library, an online library of financial disclosure and other accounting literature. Use the global information and auditing tools from
Ernst & Young, such as the reference that compares the U.S. GAAP and international accounting standards rules.
Tips & Tactics
Helpful advice for making the most of this Guide
- Meetings of the International Accounting Standards Board as well as the Financial Accounting Standards Board are normally open for public observation, and interested parties may submit comment letters on particular issues being addressed.
The official source of International Accounting Standards is
the International Accounting Standards page at Business.com
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