Page 45 - Corporate Finance PDF Final new link
P. 45
NPP
BRILLIANT’S Accounting Standards 45
History and evolution of accounting AH$mC§qQ>J ñQ>¢S>S²>©g H$m B{Vhmg VWm CËn{Îm
standards
The evolution of the International B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g H$s CËn{Îm EH$
Accounting Standards began in 1966 with a {dídì`mnr AÜ``Z g_yh H$s ñWmnZm Ho$ EH$ gwPmd Ho$
suggestion to set up a worldwide study group. gmW 1966 _| àma§^ hþB© Wr&
The next year, the Accountant's Interna- AJbo df© AH$mC§Q>|Q²>g B§Q>aZoeZb ñQ>S>r J«wn ~Zm`m
tional Study Group was formed, and it began J`m Wm VWm BgZo {d{^ÝZ AH$mC§qQ>J {df`m| na boI
to publish papers on various accounting topics,
some of which formed the foundation for àH$m{eV H$aZm àma§^ {H$`m, {Og_| go Hw$N> Zo AH$m§C§qQ>J
accounting standards that came into force later. ñQ>¡S>S²>©g Ho$ {bE AmYma ~Zm`m Omo ~mX _| bmJy hþE Wo&
In 1973, the International Accounting 1973 _|, B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g H${_Q>r
Standards Committee (IASC) was set up with (IASC) H$mo AH$mC§qQ>J ñQ>¢S>S²>©g {dH${gV H$aZo Ho$ CÔoí`
the objective of developing accounting
standards that would be internationally Ho$ gmW ñWm{nV {H$`m J`m Wm Omo A§Vam©ï´>r` ê$n go nmbZ
followed. {H$E Om`|Jo&
The IASC issued a series of standards called IASC Zo ñQ>¢S>S²>©g H$s EH$ l¥§Ibm Omar H$s {Ogo
the International Accounting Standards, B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g H$hm J`m {OgHo$ Zm_
named and numbered from IAS 1 to IAS 41 VWm H«$_m§H$ IAS 1 go IAS 41 (H¥${f) VH$ {X`o
(Agriculture). J`o Wo&
In 2001, the International Accounting 2001 _| B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g ~moS>© (IASB)
Standards Board (IASB), formed under the H$mo B§Q>aZoeZb \$m`Z|{e`b [anmo{Q>ªJ ñQ>¢S>S²>©g (IFRS) Ho$
International Financial Reporting Standards
(IFRS) Foundation, replaced the IASC. AYrZ ~Zm`m J`m {OgZo IASC H$mo à{VñWm{nV {H$`m&
The IASB announced that it would follow IASB Zo KmofUm H$s {H$ `h AmB©EEggr Ûmam nhbo
the standards already issued by the IASC, but go Omar {H$`o J`o ñQ>¢S>S²>©g H$m nmbZ H$aoJm qH$Vw ~Vm`m
stated that any new standards would be
known as a part of a series called the {H$ H$moB© Z`m _mZH$ l¥§Ibm H$m ^mJ H$hbm`oJm {Ogo IFRS
International Financial Reporting Standards, \$mC§S>oeZ Ûmam CËnÝZ {H$`o J`o B§Q>aZoeZb \$m`Z|{e`b
evolved by the IFRS Foundation. [anmo{Q>ªJ ñQ>¢S>S²>©g H$hm OmVm h¡&
The objective of the IFRS is to develop, in IFRS H$m CÔoí` OZVm Ho$ {hV _| g_PZo `mo½`,
the public interest, a high-quality set of A§Vam©ï´>r` ê$n go ñdrH¥$V VWm bmJy hmoZo `mo½` AH$mC§qQ>J
comprehensible, internationally accepted, and
ñQ>¢S>S²>©g Ho$ EH$ CÀM JwUdËVm g_yh H$m {dH$mg H$aZm h¡&
enforceable accounting standards.
The IFRS Foundation, an independent, IFRS \$mC§S>oeZ EH$ ñdV§Ì, Aì`mdgm{`H$ g§JR>Z
not-for-profit organisation, raises funds from h¡ Omo ~¢³g VWm AÝ` g§JR>Zm| go YZ àmßV H$aVm h¡
banks and other organisations that desire to
have international accounting standards in {OgH$s BÀN>m g^r Xoem| _| A§Vam©ï´r` AH$mC§qQ>J ñQ>¢S>S²>©g
place in all countries. ñWm{nV H$aZm h¡&
The IASB consists of board members who IASB ~moS>© _|~g© go {_bH$a ~Zm h¡ Omo nyao {díd go
are accounting experts drawn from all over the {b`o J`o AH$mC§qQ>J {deofk h¢ Omo ñQ>¢S>S²>©g goqQ>J VWm
world, who are well-versed in standards- e¡j{UH$ H$m`© _| nyar Vah Xj h¢&
setting and academic work.