The International Accounting Standards Board is an independent regulatory body for IFRS, which is based in the United Kingdom and aims to develop a single set of global accounting standards. One can think it’s the International counterpart of the FASB. The Board members come from nine countries and come from different backgrounds. The Board is committed to developing, in the public interest, a single set of high-quality, understandable, and enforceable global accounting standards that require transparent and comparable information in general-purpose financial statements. Also, the ISAB cooperates with the FASB to achieve convergence in accounting standards around the world.
The importance of the IASB is to create the standards for the international financial reporting standards. This is useful for countries that are listed in the U.S. exchange and not incorporated in the United States. Over 100 countries use IFRS, not only that but an additional 7000 countries from the European Union are required to use IFRS, in which they have to conform to the rules of IASB. A recent change has been made since the former chairman was up for retirement and was David Tweedie, who was succeeded by Hans’s Hoogervorst. Hoogervorst Minister of Health, Welfare and Sport of the Netherlands between May 2003 and February 2007. His previous positions in the Dutch government include Minister of Finance (2002-2003) and State Secretary (Deputy Minister) of Social Affairs and Employment (1998-2002)
IFRS stands for the international financial reporting standards and is used by over a 100 countries and now the European Union, which includes 7000 companies, requires the use of IFRS. Convergence is the road map in which the United States changes its accounting standards from GAAP to IFRS and the FASB. This process is supposed to last till 2016, in which is the expected date that companies are expected to report under...