Chapter 3 - International convergence of financial reporting. After completing this chapter, students will be able to: Explain the meaning of convergence, identify the arguments for and against international convergence of financial reporting standards, discuss major harmonization efforts under the IASC,. | Chapter 3: International Convergence of Financial Reporting Learning Objectives Explain the meaning of convergence Identify the arguments for and against international convergence of financial reporting standards Discuss major harmonization efforts under the IASC Explain the principles-based approach used by the IASB in setting accounting standards Describe the proposed changes to the IASB’s Framework Discuss the IASB’s Standards related to the first-time adoption of IFRS and the presentation of financial statements Describe the support for, and the use of, IFRS across countries 3-2 Learning Objectives Examine the issues related to international convergence of financial reporting standards Describe the progress made with regard to IASB/FASB convergence project Explain the meaning of “Anglo-Saxon” accounting 3-3 International Accounting Standard-setting Evolution of IASC and IASB shows international accounting standard-setting in the private sector: With the support of the accounting bodies, standard-setters, capital market regulators, government authorities, and financial statement preparers Harmonization allows countries to have different standards as long as they do not conflict Accounting harmonization considered in two ways Harmonization of accounting regulations or standards Harmonization of accounting practices 3-4 International Accounting Standard-setting Other factors leading to noncomparable accounting numbers despite similar accounting standards Quality of audits Enforcement mechanisms Culture legal requirements Socioeconomic and political systems International convergence of accounting standards refers to both a goal and the process adopted to achieve it 3-5 Harmonization and Convergence Harmonization Reduction of alternatives while maintaining a high degree of flexibility in accounting practices Convergence Enforcement of single set of accepted standards by several regulatory bodies 3-6 Harmonization Can be considered in two ways Harmonization of . | Chapter 3: International Convergence of Financial Reporting Learning Objectives Explain the meaning of convergence Identify the arguments for and against international convergence of financial reporting standards Discuss major harmonization efforts under the IASC Explain the principles-based approach used by the IASB in setting accounting standards Describe the proposed changes to the IASB’s Framework Discuss the IASB’s Standards related to the first-time adoption of IFRS and the presentation of financial statements Describe the support for, and the use of, IFRS across countries 3-2 Learning Objectives Examine the issues related to international convergence of financial reporting standards Describe the progress made with regard to IASB/FASB convergence project Explain the meaning of “Anglo-Saxon” accounting 3-3 International Accounting Standard-setting Evolution of IASC and IASB shows international accounting standard-setting in the private sector: With the support of the accounting .
