International Accounting Standards
(IAS)

IAS. Explanation of International Accounting Standards.

The IAS (International Accounting Standards) is a set of standards which state how certain types of transactions and other events should be reflected in financial statements.

The IAS are issued by the IASB, the Board of the International Accounting Standards Committee (IASC).

Accounting standards are authoritative statements of how certain types of transaction and other events should be reflected in financial statements. Accordingly, compliance with accounting standards will normally be necessary for the fair presentation of financial statements.

Standards issued by the International Accounting Standards Board are designated: International Financial Reporting Standards (IFRSs). Standards originally issued by the Board of the International Accounting Standards Committee (1973-2001) continue to be designated: International Accounting Standards (IASs).

Interpretations are prepared by the International Financial Reporting Interpretations Committee (IFRIC) (formerly the Standing Interpretations Committee (SIC)) to give authoritative guidance on issues that are likely to receive divergent or unacceptable treatment, in the absence of such guidance.

Although IASC has no formal authority to require compliance with its accounting standards, many countries and the EC require the financial statements of publicly-traded companies to be prepared in accordance with IAS.

Many countries already endorse International Accounting Standards (IAS) as their own accounting standards. Either without amendment or else with minor additions or deletions. Furthermore, important developments are taking place in the European Union, where the European Commission is progressing proposals that will require all listed companies in the European Union to prepare their consolidated financial statements using International Accounting Standards. Already, both inside and outside the EU, many leading companies have stated that they prepare their financial reports in accordance with International Accounting Standards.

Other countries do not permit companies to use IAS (International Accounting Standards) without a reconciliation with domestic generally accepted accounting principles. The most notable among these countries are Canada, Hong Kong, Japan, and the United States.