IAS

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Aims of International Accounting Standards


You cant do business globally and use provincial accounting standards. This


quote from a member of a German banks Managing Board reflects the concerns


being expressed by institutions from many countries that are united in the IASC





(International Accounting Standards Committee). In a world of global enterprises


and global capital markets, where people can access the information they need


anywhere in the world online and on time, the biggest problem is a lack of


transparency and comparability of information. The main objective of International


Accounting Standards (IASs) is therefore to provide a global standard for drawing


up annual financial statements in line with the general aims mentioned above.


In addition to the international focus of these standards, they aim to ensure that


investors can compare data extensively by reporting period and company and thus


obtain a sound basis on which to make their decisions. This is why the basic


principle behind the IASs is that of providing a true and fair view and of fair


presentation.


These standards dispense with the extremely cautious interpretation of data aimed


at protecting creditors � which characterizes the continental European model, for


example � in favor of accounting policies that are as up-to-date and accurate as


possible.Aims of International Accounting Standards


You cant do business globally and use provincial accounting standards. This


quote from a member of a German banks Managing Board reflects the concerns


being expressed by institutions from many countries that are united in the IASC


(International Accounting Standards Committee). In a world of global enterprises


and global capital markets, where people can access the information they need


anywhere in the world online and on time, the biggest problem is a lack of


transparency and comparability of information. The main objective of International


Accounting Standards (IASs) is therefore to provide a global standard for drawing


up annual financial statements in line with the general aims mentioned above.


In addition to the international focus of these standards, they aim to ensure that


investors can compare data extensively by reporting period and company and thus


obtain a sound basis on which to make their decisions. This is why the basic


principle behind the IASs is that of providing a true and fair view and of fair


presentation.


These standards dispense with the extremely cautious interpretation of data aimed


at protecting creditors � which characterizes the continental European model, for


example � in favor of accounting policies that are as up-to-date and accurate as


possible.


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