Knowledge (XXG)

International Accounting Standards Committee

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non-compliance. In the absence of large-scale global surveys of corporate reporting practices for the 1970s and 1980s, it is not possible to assess with any degree of precision to what degree reporting companies adopted IAS. In the early 1980s, a number of Canadian listed companies began to assert compliance with IAS in their financial statements, but this seems to have been the case in few other countries. One explanation of this limited direct impact is that in most countries, national accountancy bodies had no authority to force companies to adopt IAS. This does not rule out an indirect influence of IAS, as national accounting standards in a range of countries incorporated elements of the national standards in national requirements.
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original Constitution, membership was limited to the founding member bodies. Other accountancy bodies could join as associate members. This allowed them to propose members for working parties and so to contribute to the setting of the standards, but did not give them representation or a vote at board meetings. In 1977, the IASC's Constitution was changed to allow for the appointment of two additional board members for four-year terms, on a rotating basis. In a further change to the Constitution in 1982, the terms of all board members were limited to five years. The distinction between founding and associate members was abolished, as all member bodies of the
439:(SEC), a key IOSCO member. In 1987, the IASC embarked on a project to revise its extant standards. The revisions included the elimination of options, the expansion of disclosure requirements and additional guidance for the application of the standards. The revisions were completed in 1992. As this did not yet satisfy IOSCO, the IASC embarked on a new work programme to revise its standards, and to add standards on topics that were not yet, or only partially covered, such as accounting for financial instruments. This 'core standards' programme was completed under strong time pressure in 1998 with the publication of IAS 39 180:(IFAC) became members of the IASC. Board members were since then appointed by the IFAC Council. Because of an agreement reached in 1981 between IFAC and the IASC, the founding member bodies continued to be reappointed (with the exception of Mexico in 1987) and de facto retained their permanent seats. Under these arrangements, the following changes in board membership took place: 281:
was prepared by working groups known as steering committees, each appointed to develop proposals for a new or modified standard on a specific topic. Steering committee membership was on an individual, not institutional, basis, but appointment was based on recommendation by an IASC member body, industry organization or similar grouping.
32:, former president of the Institute of Chartered Accountants in England and Wales. The IASC was created by national accountancy bodies from a number of countries with a view to harmonizing the international diversity of company reporting practices. Between its founding in 1973 and its dissolution in 2001, it developed a set of 431:(IOSCO) which in 1988 signaled its willingness to consider an improved set of IAS as the basis for preparing financial information in multinational prospectuses. As US capital markets were among the most important in the world, this meant above all that the IASC had to bring its standards more in line with 390:
The original aim of the IASC was to issue 'basic' standards. In practice, this meant that the standards often reflected common, rather than best practices in the board member countries. Several standards contained alternative treatments (options), reflecting the diversity of practice. For instance,
36:(IAS) that gradually acquired a degree of acceptance in countries around the world. Although the IASC came to include some organizations representing preparers and users of financial statements, it largely remained an initiative of the accountancy profession. On 1 April 2001, it was replaced by the 280:
At the core of the IASC was the committee, or board, consisting of delegations from the member bodies. The board typically met three to four times a year for two or three days in locations around the world. It was served by a permanent secretariat based in London. The technical agenda of the board
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Membership of the committee (later known as the board) was on an institutional, not at an individual basis. Each institution represented on the board could send a delegation of two representatives and a staff observer to committee meetings. Each delegation wielded one vote. According to the IASC's
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The IASC's constitution as revised in 1982 provided for a limited expansion of the board's membership beyond the organized accountancy profession. Up to four organizations having an interest in financial reporting could now be invited to be represented on the board. As a result, three non-auditor
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because of actual or planned listings in the United States. Others adopted IAS which was increasingly seen as a set of standards of sufficient quality for international capital markets. In 1998, German companies were allowed to satisfy their legal reporting requirements in Germany by publishing
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According to the IASC's Constitution, the member bodies were committed to use their 'best endeavours' with reporting companies, their auditors, governments and securities market regulators to ensure that published financial statements complied with IAS, and that audit reports referred to any
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From the start, the IASC adopted the practice of issuing draft standards (exposure drafts) for public comment before agreeing on a final standard. This allowed a degree of wider participation in the standard-setting work even though in practice a large proportion of the responses came from
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and base stock methods. For this reason, the IASC was sometimes criticized for taking a 'lowest common denominator' approach. However, some of the early standards prescribed practices that were not yet commonly followed in many countries, including several board member countries. IAS 3
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The efforts of the IASC, from 1987 onwards, to improve its standards in order to make them an acceptable basis for cross-border listings led to greater recognition. During the 1990s, a number of major European companies began to prepare financial statements on the basis of
188:, SAICA) became an associate member in 1974 and joined the board in 1978. Because of continued reappointments, South Africa became in effect a permanent member of the board. In 1995 the South Africans began sharing their representation on the board with the 248:
Between 1973 and the change in the IASC's Constitution which made all IFAC members IASC members, a total of 46 accountancy bodies were admitted as associate members, including: the New Zealand Society of Accountants (1974); the
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In 1987, the IASC adopted a new strategy of strengthening its standards to make them a suitable basis for financial reporting by companies seeking cross-border stock market listings. In doing so, it was encouraged by the
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Denmark became a member in 1988, replaced in 1990 by the Nordic Federation of Public Accountants (represented by Danes, Swedes and Norwegians, since the Fins and Icelandics were not interested in participating).
387:, each dealing with a specific financial reporting topic. Over time, standards were amended or replaced. When the IASC was replaced by the IASB, 34 standards were still extant and adopted by the IASB. 285:
accountancy bodies, audit firms and national accounting standard setters. In 1981, the IASC established a Consultative Group, with a view to engaging a broader set of organizations in its work.
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Camfferman, K. and Zeff, S.A., 2007, Financial Reporting and Global Capital Markets. A History of the International Accounting Standards Committee, 1973-2000, Oxford University Press.
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became an associate member in 1975 (later joined by the Institut Akauntan Malaysia, the Malaysian Institute of Accountants), and was a member of the board from 1995 to 2000.
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In 1996, the IASC set up a Standing Interpretations Committee (SIC), charged with issuing interpretations of standards on relatively narrow issues arising in practice.
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became a member of IFAC Council in 1983 and in 1984 began a three-year term as the second accountancy body from East Asia, after Japan, represented on the IASC Board.
94: 938: 234: 60: 250: 189: 150: 142: 196: 154: 146: 265:
1986: The International Co-ordinating Committee of Financial Analysts Associations (since 1988 known as the International Council of Investment Associations).
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Leadership of the IASC was provided by the chairman of the board and head of the secretariat (the Secretary, known since 1984 as Secretary-General):
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by parents of subsidiary companies. This was well before the Seventh Company Law Directive (1983) made this mandatory in the member states of the
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consolidated financial statements based on 'internationally recognized principles of accounting', which in practice meant either US GAAP or IAS.
241: 33: 203: 676: 254: 124: 412: 423:(1982) required the capitalization of finance leases, a practice that was as yet unusual or unknown outside the United States. 117:(IMCP) (Mexican Institute of Public Accountants)) (removed from the board in 1987 due to non-payment of dues; resumed in 1995). 114: 233:(ICAI) became an associate member in 1974 and joined the board in 1993. In 1995, India began sharing the delegation with the 223: 40:(IASB), an independent standard-setting body. The IASB adopted the extant corpus of IAS which it continued to develop as 540:
Doupnik, S.; Taylor, M.E. (1985). "An Empirical Investigation of the Observance of IASC Standards in Western Europe".
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All but Enevoldsen were from one of the founder member countries. All but Jones were partners in audit firms.
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The IASC was founded as a result of an agreement between accountancy bodies in the following countries:
758: 97:(IDW) (Institute of Auditors in Germany) and the Wirtschaftsprüferkammer (WPK) (Chamber of Auditors)) 134: 257:(1974); the Singapore Society of Accountants (1975); the Hong Kong Society of Accountants (1975). 813: 808: 803: 549: 879: 726: 222:
A Jordanian delegation served on the Board from 1989 to 1995 which was constituted by the
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National Federation of Certified Public Accountants Associations of the Republic of China
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delegations were added over time, all remaining on the board until the end of the IASC:
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The National Council of Chartered Accountants (South Africa, subsequently known as the
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Valuation and Presentation of Inventories in the Context of the Historical Cost System
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became an associate member in 1976 and was a member of the board from 1979 to 1987.
67:(formerly known as Australian Society of Certified Practising Accountants (ASCPA)) 120: 711: 56: 656:
Creative accounting: Some ethical issues of macro-and micro-manipulation
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1996: The International Association of Financial Executives Institutes.
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The international accounting standards committee: A political history
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Consolidated Financial Statements and the Equity Method of Accounting
110: 80: 70: 25: 864: 859: 854: 849: 392: 377: 100: 680: 206:(Italy) joined the IASC board in 1983 and remained until 1995. 268:
1995: The Federation of Swiss Industrial Holding Companies.
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Camfferman and Zeff, 2007, Chapters 4, 6, 8; Appendix 3.
87:(Order of Accounting Experts and Qualified Accountants)) 642: 139:
Institute of Chartered Accountants in England and Wales
127:(NIVRA) (Netherlands Institute of Registered Auditors)) 242:
Malaysian Association of Certified Public Accountants
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Chartered Institute of Public Finance and Accountancy
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Ordre des Experts Comptables et des Comptables Agréés
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International Organization of Securities Commissions
398:(1975) allowed a variety of practices including the 842: 766: 756: 740: 719: 441:
Financial Instruments: Recognition and Measurement.
169:American Institute of Certified Public Accountants 105:Japanese Institute of Certified Public Accountants 602:Camfferman and Zeff, 2007, p. 166 and Chapter 6. 186:South African Institute of Chartered Accountants 235:Institute of Chartered Accountants of Sri Lanka 61:Institute of Chartered Accountants in Australia 251:Institute of Chartered Accountants of Pakistan 204:Consiglio Nazionale dei Dottori Commercialisti 190:Institute of Chartered Accountants of Zimbabwe 151:Association of Chartered Certified Accountants 143:Institute of Chartered Accountants of Scotland 748:International Accounting Standards Committee 692: 435:(US GAAP) in order to gain acceptance by the 197:Institute of Chartered Accountants of Nigeria 155:Chartered Institute of Management Accountants 147:Institute of Chartered Accountants in Ireland 95:Institut der Wirtschaftsprüfer in Deutschland 8: 485:Camfferman and Zeff, 2007, Chapters 6 and 7. 318:George Barthès de Ruyter (France, 1985-1987) 309:Hans Burggraaff (The Netherlands, 1980-1982) 255:Pakistan Institute of Industrial Accountants 125:Nederlands Instituut van Registeraccountants 18:International Accounting Standards Committee 708:International Financial Reporting Standards 433:US Generally Accepted Accounting Principles 231:Institute of Chartered Accountants of India 75:Canadian Institute of Chartered Accountants 42:International Financial Reporting Standards 763: 699: 685: 677: 219:Korea sent a delegation from 1988 to 1992. 115:Instituto Mexicano de Contadores Públicos 732:International Accounting Standards Board 358:Geoffrey Mitchell (Australia, 1982-1985) 38:International Accounting Standards Board 469: 178:International Federation of Accountants 939:International accounting organizations 654:Gowthorpe, C., & Amat, O. (2005). 512:Camfferman and Zeff, 2007, p. 177-180. 383:published in 1975, the IASC issued 41 620:Camfferman and Zeff, 2007, Chapter 6. 575:Camfferman and Zeff, 2007, Chapter 9. 521:Camfferman and Zeff, 2007, Appendix 2 437:US Securities and Exchange Commission 327:Michael Sharpe (Australia, 1995-1997) 224:Arab Society of Certified Accountants 7: 411:(1976) required the presentation of 330:Stig Enevoldsen (Denmark, 1998-2000) 306:John Hepworth (Australia, 1978-1980) 341:Secretaries and Secretaries-General 324:Eiichi Shiratori (Japan, 1993-1995) 312:Stephen Elliott (Canada, 1982-1985) 629:Camfferman and Zeff, 2007, p. 413. 611:Camfferman and Zeff, 2007, p. 181. 593:Camfferman and Zeff, 2007, p. 500. 584:Camfferman and Zeff, 2007, p. 302. 566:Camfferman and Zeff, 2007, p. 128. 385:International Accounting Standards 381:Disclosure of Accounting Policies, 367:Sir Bryan Carsberg (UK, 1995-2001) 34:International Accounting Standards 14: 530:Camfferman and Zeff, 2007, p. 51. 503:Camfferman and Zeff, 2007, p. 73. 413:consolidated financial statements 364:Liesel Knorr (Germany, 1995-1995) 349:John Brennan (Canada, 1975-1977) 315:John Kirkpatrick (UK, 1985-1987) 303:Joseph Cummings (USA, 1976-1978) 300:Sir Henry Benson (UK, 1973-1976) 542:Management International Review 346:Paul Rosenfield (US, 1973-1975) 103:Nihon Kouninkaikeishi Kyoukai ( 673:. Wolters Kluwer (UK) Limited. 24:) was founded in June 1973 in 1: 361:David Cairns (UK, 1985-1994) 333:Thomas Jones (US, 2000-2001) 321:Arthur Wyatt (US, 1990-1992) 165:the United States of America 417:European Economic Community 955: 660:Journal of Business Ethics 355:Allan Cook (UK, 1979-1981) 352:Roy Nash (US, 1977-1979) 669:Kirsch, R. J. (2006). 421:Accounting for Leases 28:at the initiative of 295:Chairmen of the IASC 137:(counted as one) ( 131:the United Kingdom 926: 925: 913:List of standards 908: 907: 946: 764: 701: 694: 687: 678: 630: 627: 621: 618: 612: 609: 603: 600: 594: 591: 585: 582: 576: 573: 567: 564: 558: 557: 537: 531: 528: 522: 519: 513: 510: 504: 501: 495: 492: 486: 483: 477: 474: 157:(CIMA), and the 30:Sir Henry Benson 954: 953: 949: 948: 947: 945: 944: 943: 929: 928: 927: 922: 904: 838: 752: 736: 727:IFRS Foundation 715: 705: 651: 649:Further reading 639: 634: 633: 628: 624: 619: 615: 610: 606: 601: 597: 592: 588: 583: 579: 574: 570: 565: 561: 539: 538: 534: 529: 525: 520: 516: 511: 507: 502: 498: 493: 489: 484: 480: 475: 471: 466: 448: 374: 343: 297: 278: 121:the Netherlands 63:(ICAA) and the 50: 12: 11: 5: 952: 950: 942: 941: 931: 930: 924: 923: 921: 920: 915: 909: 906: 905: 903: 902: 897: 892: 887: 882: 877: 872: 867: 862: 857: 852: 846: 844: 840: 839: 837: 836: 831: 826: 821: 816: 811: 806: 801: 796: 791: 786: 781: 776: 770: 768: 761: 754: 753: 751: 750: 744: 742: 738: 737: 735: 734: 729: 723: 721: 717: 716: 706: 704: 703: 696: 689: 681: 675: 674: 667: 650: 647: 646: 645: 638: 637:External links 635: 632: 631: 622: 613: 604: 595: 586: 577: 568: 559: 532: 523: 514: 505: 496: 487: 478: 468: 467: 465: 462: 447: 444: 376:Starting with 373: 370: 369: 368: 365: 362: 359: 356: 353: 350: 347: 342: 339: 335: 334: 331: 328: 325: 322: 319: 316: 313: 310: 307: 304: 301: 296: 293: 277: 274: 273: 272: 269: 266: 246: 245: 238: 227: 220: 217: 214: 207: 200: 193: 173: 172: 162: 128: 118: 108: 98: 88: 78: 68: 49: 46: 13: 10: 9: 6: 4: 3: 2: 951: 940: 937: 936: 934: 919: 916: 914: 911: 910: 901: 898: 896: 893: 891: 888: 886: 883: 881: 878: 876: 873: 871: 868: 866: 863: 861: 858: 856: 853: 851: 848: 847: 845: 841: 835: 832: 830: 827: 825: 822: 820: 817: 815: 812: 810: 807: 805: 802: 800: 797: 795: 792: 790: 787: 785: 782: 780: 777: 775: 772: 771: 769: 765: 762: 760: 755: 749: 746: 745: 743: 739: 733: 730: 728: 725: 724: 722: 720:Organizations 718: 714:Organizations 713: 709: 702: 697: 695: 690: 688: 683: 682: 679: 672: 668: 665: 661: 657: 653: 652: 648: 644: 641: 640: 636: 626: 623: 617: 614: 608: 605: 599: 596: 590: 587: 581: 578: 572: 569: 563: 560: 555: 551: 547: 543: 536: 533: 527: 524: 518: 515: 509: 506: 500: 497: 491: 488: 482: 479: 473: 470: 463: 461: 458: 452: 445: 443: 442: 438: 434: 430: 424: 422: 418: 414: 410: 405: 401: 397: 394: 388: 386: 382: 379: 371: 366: 363: 360: 357: 354: 351: 348: 345: 344: 340: 338: 332: 329: 326: 323: 320: 317: 314: 311: 308: 305: 302: 299: 298: 294: 292: 289: 286: 282: 275: 270: 267: 264: 263: 262: 258: 256: 252: 243: 239: 236: 232: 228: 225: 221: 218: 215: 212: 208: 205: 201: 198: 194: 191: 187: 183: 182: 181: 179: 170: 166: 163: 160: 156: 152: 148: 144: 140: 136: 132: 129: 126: 122: 119: 116: 112: 109: 106: 102: 99: 96: 92: 89: 86: 82: 79: 76: 72: 69: 66: 65:CPA Australia 62: 58: 55: 54: 53: 47: 45: 43: 39: 35: 31: 27: 23: 19: 918:requirements 747: 741:Predecessors 710:and Related 670: 663: 659: 625: 616: 607: 598: 589: 580: 571: 562: 548:(1): 27–33. 545: 541: 535: 526: 517: 508: 499: 490: 481: 472: 453: 449: 440: 425: 420: 408: 395: 389: 380: 375: 336: 290: 287: 283: 279: 276:Organization 259: 247: 174: 51: 21: 17: 15: 666:(1), 55–64. 712:Accounting 464:References 48:Membership 759:standards 757:Selected 419:. IAS 17 372:Standards 141:(ICAEW), 107:, JICPA)) 57:Australia 933:Category 554:40227737 253:and the 171:(AICPA)) 153:(ACCA), 149:(ICAI), 145:(ICAS), 643:Website 457:US GAAP 161:(CIPFA) 135:Ireland 91:Germany 77:(CICA)) 552:  446:Impact 111:Mexico 81:France 71:Canada 26:London 550:JSTOR 393:IAS 2 378:IAS 1 101:Japan 767:IFRS 404:FIFO 400:LIFO 240:The 229:The 209:The 202:The 195:The 133:and 22:IASC 16:The 843:IAS 935:: 900:39 895:37 890:23 885:19 880:17 875:16 870:10 834:17 829:16 824:15 819:13 814:12 809:11 804:10 664:57 662:, 658:. 546:25 544:. 402:, 44:. 865:8 860:7 855:2 850:1 799:9 794:7 789:5 784:4 779:2 774:1 700:e 693:t 686:v 556:. 237:. 226:. 192:. 167:( 123:( 113:( 93:( 83:( 73:( 59:( 20:(

Index

London
Sir Henry Benson
International Accounting Standards
International Accounting Standards Board
International Financial Reporting Standards
Australia
Institute of Chartered Accountants in Australia
CPA Australia
Canada
Canadian Institute of Chartered Accountants
France
Ordre des Experts Comptables et des Comptables Agréés
Germany
Institut der Wirtschaftsprüfer in Deutschland
Japan
Japanese Institute of Certified Public Accountants
Mexico
Instituto Mexicano de Contadores Públicos
the Netherlands
Nederlands Instituut van Registeraccountants
the United Kingdom
Ireland
Institute of Chartered Accountants in England and Wales
Institute of Chartered Accountants of Scotland
Institute of Chartered Accountants in Ireland
Association of Chartered Certified Accountants
Chartered Institute of Management Accountants
Chartered Institute of Public Finance and Accountancy
the United States of America
American Institute of Certified Public Accountants

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