International Accounting Standards
Adopting international accounting standards to be recognized globallyInternational 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.
Read international accounting articles
Participate in international accounting trainingHands-on training in standards for international accounting can put you on top of your game.
Utilize online tools to help you learn international accounting standardsThe Internet provides a variety of resources you can use to learn and apply international accounting standards.
- 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.
Copyright © 2013 Business.com, Inc. All Rights Reserved.