International standards IAS is fully compatible with U.S. "generally accepted accounting principles" (GAAP). In a variety of issues, GAAP contains more detailed methodology of the calculation. IAS and GAAP standards are based on the same principles of accounting and financial reporting. For various reasons, which are influenced by the international standards of accounting practices in the United States. There are currently more than 30 accounting standards relating to various aspects of accounting.
Determinants of use of international financial reporting standards is a desire to improve the company's ability to attract significant foreign funding, the establishment of a long-term trade relations with foreign customers, attract foreign investment, joint ventures, and the issuance of securities in the international market.
IAS establish requirements for financial statements, as a form, time recording, content, etc.. They are intended to improve and harmonize legislation, there is a standard system of accounting and financial reporting procedures. Application of IAS accounting system is also useful for characterizing the performance of the company in the form of a simpler and more realistic, to compare the company's financial situation with a foreign company's financial situation.
IAS Principles
Accrual concept in IAS (income and expenditure). Transaction revenues and expenses are recognized when their appearance (not the time of payment or receipt of money), recorded in the accounting records and recognized in the financial statements in the period they relate to. The financial statements are prepared in accordance with the principle of accrual inform users not only of past transactions involving the payment and receipt of funds, but also the obligation to pay in the future and resources as funds are received in the future.
Guidelines for the preparation of financial statements in IAS:
1. Diligence. Aiming to ensure assets and income do not exceed and liabilities or expenses are not overlooked. According to this principle IAS, one must be ready to repel potential losses and damages and refrain from declaring income and actual income before acceptance.
2. Substance over form. It is necessary that the information regarding the operation would first match point and economic realities, not merely the legal form established.
3. Completeness of the information. According to IAS, the information must be complete. But one must take into account the importance and value.
4. Comparability. IAS users should be able to compare the financial statements of the company, made at different times, to identify common trends, as well as the financial statements of different companies. Accounting policies not implemented arbitrarily.
International standards are developed and approved by the international financial reporting standards. This committee was formed on June 29, 1973 as a result of the adoption of the agreement by accountancy bodies in Austria, Canada, France, Germany, Japan, Mexico, Netherlands, Ireland, the United Kingdom and the United States.
Determinants of use of international financial reporting standards is a desire to improve the company's ability to attract significant foreign funding, the establishment of a long-term trade relations with foreign customers, attract foreign investment, joint ventures, and the issuance of securities in the international market.
IAS establish requirements for financial statements, as a form, time recording, content, etc.. They are intended to improve and harmonize legislation, there is a standard system of accounting and financial reporting procedures. Application of IAS accounting system is also useful for characterizing the performance of the company in the form of a simpler and more realistic, to compare the company's financial situation with a foreign company's financial situation.
IAS Principles
Accrual concept in IAS (income and expenditure). Transaction revenues and expenses are recognized when their appearance (not the time of payment or receipt of money), recorded in the accounting records and recognized in the financial statements in the period they relate to. The financial statements are prepared in accordance with the principle of accrual inform users not only of past transactions involving the payment and receipt of funds, but also the obligation to pay in the future and resources as funds are received in the future.
Guidelines for the preparation of financial statements in IAS:
1. Diligence. Aiming to ensure assets and income do not exceed and liabilities or expenses are not overlooked. According to this principle IAS, one must be ready to repel potential losses and damages and refrain from declaring income and actual income before acceptance.
2. Substance over form. It is necessary that the information regarding the operation would first match point and economic realities, not merely the legal form established.
3. Completeness of the information. According to IAS, the information must be complete. But one must take into account the importance and value.
4. Comparability. IAS users should be able to compare the financial statements of the company, made at different times, to identify common trends, as well as the financial statements of different companies. Accounting policies not implemented arbitrarily.
International standards are developed and approved by the international financial reporting standards. This committee was formed on June 29, 1973 as a result of the adoption of the agreement by accountancy bodies in Austria, Canada, France, Germany, Japan, Mexico, Netherlands, Ireland, the United Kingdom and the United States.
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