FORMATIVE RESEARCH ACCOUNTING PROGRAM

PUBLISHES
ACADEMIC ESSAY

MATTER: 1221020 INTRODUCCION A LA CONTADURIA ASEMESTER ENROLLED: 01

CODE LASTNAMES AND NAMES:

TEACHER:

TITLE: BOOK ESSAY: “INTERNATIONAL ACCOUNTING, THE IASB AND THE

OBJECTIVE OF THE STUDY:

This essay aims to address issues exposed in the book "International Accounting, the IASB and

the European Union.

DESCRIPTION OF THE PROBLEM:

This manual is not only an account of the differences between International Financial

Reporting Standards (IFRS) and local regulations. It has tried to reflect on the accounting

harmonization process and that it has led to the standardization of the highest quality accounting

information, which is what is prepared and published by entities listed on stock exchanges.

To achieve this, the book describes how accounting standards are made and how the bodies that

prepare and approve them have been developed, both in the European Union and internationally.
 DEVELOPMENT OF THE TOPIC:

THEORETICAL CONTRIBUTIONS:

Since the old commercial companies have developed the registry of their operations taking as a

model the practices of other more successful or evolved companies, and the countries have adopted

existing accounting regulations in other more developed countries.

Thus, the double entry, practiced in the Middle Ages to record the economic events of

commercial companies and their results, originated in the city-states of the Mediterranean shore,

between Naples and Valencia, and later extended through the lands of the European interior to

throughout the fifteenth to seventeenth centuries. The Industrial Revolution at the end of the 18th

century and a good part of the 19th, one of whose most important exponents were commercial practices

in Great Britain, led to the development of both accounting and auditing there in the 19th century,

which was exported to the United States. United States in the 20th century and had a spectacular

development in the New World due to the emergence of private industrial companies. The

internationalization of these companies in the second half of that century caused a set of accounting

techniques and institutions to spread throughout the world, such as the independent emission of

standards for financial information or auditing. These practices have determined, since the end of the

Second World War, the evolution and current functioning of all accounting systems in the world of the

21st century (Gonzalo and Tenant, 2013).

Neither governments nor intergovernmental organizations were involved in the creation of the

IASC, but institutes of accounting professionals concerned about the non-existence of common basic
rules in all countries.

As described by Camfferman and Zeff (2006), and summarized later by Zeff (2012), these early

years were characterized by difficulties, the most important of which was that approval of issuing a

draft standard or a standard required the affirmative vote of the 75 percent of the countries that made up

the Council, which was sometimes very difficult to achieve; In addition, the IASC had hardly any

technical personnel or budget to pay for the drafting of the draft standards and the modifications

according to the agreements obtained.

In this second stage, the IASC is emerging as a true point of reference in world accounting, as

its standards are recognized as valid for listed entities to send their information to stock exchanges. The

companies that go to the stock markets are the world leaders in all sectors, which implies that their

behavior also determines that of the rest, and the quality of their information can drag all the others,

whether or not they are listed on the stock markets. capitals. In addition, a reflection took place to make

its operation more participatory and independent, which paved the way for its reorganization as the

IASB.

The proposed new organization was accepted by the IASC in 2000, and in 2001 the new body

that replaced it was constituted, taking the legal form of a Foundation (the IFRS Foundation) directed

by the Trustees, with a Council of independent experts called the IASB composed by 14 members who

kept the required geographical balance.

At its first meeting, the IASB assumed all the IAS and their interpretations, accepting them until

they were repealed or replaced by new ones. The new standards would be called International Financial
Reporting Standards (IFRS) or International Financial Reporting Standards (IFRS).

DISCUSSION OF THE TOPIC:

It is possible that, seen from the outside, the IASB now appears to be a very complex

organization, with many interests to serve, but its structure has been shaped little by little over time,

seeking a balance between a clear mission such as issuing standards accounting standards with a global

vocation and their acceptability by the entities, users and authorities of the securities markets, all of

them recipients of the same, based on the rigorous observance of the principles of independence in

decisions and transparency in all and each of the performances. This work has worldwide

consequences, not only because it defines what the accounting standards used by any entity are or will

be, but also because the relevant information that faithfully represents transactions and other economic

events can play a great role in financial stability. of each country, and globally.

PERSONAL CONTRIBUTIONS:

I personally believe that the topics covered in the book are of great importance for people with

sufficient knowledge of accounting principles.

The IASB must provide important standards on issues that have plagued even the most

advanced standard setters. And it must continue to refine, improve, and expand its set of standards,

especially as new topics and issues arise. Already the role of the large countries that have adopted or

converged with IFRS is impressive. And with the passage of time, the stubborn will get used to the idea

that financial reports, unlike laws, should be the same throughout the world, because the stock markets
today are one.

The proposal for the full and complete adoption of international standards in underdeveloped

countries is a decision that must be the result of a rigorous study of the impact that the change in

accounting regulations and the implementation of the new model can generate in all aspects.

The need to build a joint Latin American action force that strengthens the bonds of exchange

and cooperation is evident. In the accounting field, the idea of a regulation with common elements for

the entire continent is a desirable option. The strategy should be different from that of the IASB; It is

not an alliance to strengthen developed countries, it is a union to defend against the danger of

colonizing nations. The Latino coalition allows the benefits of the union to be used on equal terms.

BIBLIOGRAPHIC REFERENCES:

⎯ Campo E (2019) International accounting as an alternative for decision making in

corporate finance.

⎯ Gonzalo J & Garvey A (2017) International Accounting, the IASB and the European

Union.

⎯ Inchausti B (2003) Some keys on European accounting: the new regulatory process and

the new standards.

⎯ Mejía E (2008) Theoretical Foundations of the Common Accounting Model for SMEs in

Latin America: An Alternative to the International Accounting Regulation IASB.

and its impact on Latin America.

⎯ Peñafiel D & Contreras N (2015) Analysis of the possible theoretical foundations that

support the IASB regulation model and its postulate of public interest.

⎯ Romero E (2013) The IASB model: A global perspective.

⎯ Stephen A. Zeff (2012) The evolution of the IASC to the IASB, and the challenges it

faces.

⎯ Harmonization or discord? The critical role of the IASB's conceptual framework review

[Link]

⎯ IASB lobbying: an empirical investigation [Link]

abstract/10/2/57/139240/Lobbying-of-the-IASB-An-Empirical-Investigation

⎯ Accounting in the European Union [Link]

⎯ International accounting

[Link]

⎯ International accounting [Link]

⎯ The IASB standard-setting process: participation and perceptions of users of financial

statements [Link]
⎯ IASB issues limited scope amendments to IFRS

[Link]

⎯ The importance of International Financial Reporting Standards [Link]

importancia-de-las-normas-internacionales-de-informacion-financiera/

⎯ IASB regulation as a benchmark for global standards [Link]

⎯ International Financial Reporting Standards

[Link]

[Link]

⎯ Repoliticizing accounting standard setting: the IASB, the EU and the global financial

crisis [Link]

⎯ Fair value and the IASB/FASB conceptual framework project: an alternative view

[Link]

⎯ Five basic concepts of international accounting that an accountant must know

[Link]

[Link]