Chapter 1 - Introduction and the IAS framework. The following will be discussed in this chapter: Introduction and the framework, the . experience to date, looking ahead, measurement model, end-of-chapter practice. | Lecture IFRS primer international GAAP basics Chapter 1 - Wiecek Young Introduction and the IAS Framework Wiecek and Young IFRS Primer Chapter 1 Chapter Overview Introduction and the Framework The . experience to date Looking ahead Measurement model End-of-chapter practice 2 Introduction and the IAS Framework A common set of global accounting standards Conceptual framework for the preparation and presentation of financial statements GAAP hierarchy 3 A Common Set of Global Accounting Standards Do we need a common set of global accounting standards Various GAAP have been developed in many countries due to differences in the legal regulatory social economic and cultural environments. Results in financial statements that are not comparable and difficult for users to interpret This acts as a barrier for global capital movement Recently there has been a movement toward harmonization and convergence of GAAP Most significant initiative being led by the International Accounting Standards Board IASB 4 A Common Set of Global Accounting Standards IASB Reports to the IASC Foundation Structure 12 full-time and 2 part-time members Mandate single set of high quality understandable enforceable global standards Transparent comparable information 5 A Common Set of Global Accounting Standards The IASB works with national accounting standard setters to move toward global convergence. To date nearly 100 countries have converged require or allow IFRS or are on the path to convergence. 6 A Common Set of Global Accounting Standards Political and Regulatory Issues One issue with convergence is enforcement Once standard setting moves to a global arena this fragmented regulatory environment will prove to be a challenge With so many entities regulating the markets is it possible to be consistent In October 2005 IOSCO announced that it would create an IFRS database for regulators to share decisions on the application of IFRS Is there or can there ever be total acceptance of .
