Individual and independent accounting standards may result in the distorted picture of any financial statement. That is more so in the case of companies dealing in international business. To understand the financial statements of different companies originating from various countries we need a common accounting standard. Here, comes the role of International Accounting Standard Board.
IASB is the world’ leading accounting standard setter, which is almost followed in 100 countries. They have their office world over to facilitate the person involved to contribute and discuss the changes in the accounting standard on an ongoing basis depending upon the changing economic and business scenario.
IASB rules are mandatory in many European countries and the companies are invariably governed by the standard set by them. IASB rules are based on the clearly articulated principles and not by imposition.
The common standard arrived and communicated by them that helps in the international trade for easy understanding of the financial statements of different countries for better trade relations and decision.
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