International accounting standards explained
Most countries require registered companies to prepare accounts to common standards. The most widely used standards amongst those countries which do not have their own national standards are currently the US Generally Accepted Accounting Principles (GAAP), and the UK GAAP (which is used in many Commonwealth countries). With increased globalization of industry and investment, there has been pressure to harmonise all standards throughout the world in order to facilitate the effective comparison of performance between companies. The International Accounting Standards (IAS) are a set of standards which can be used to bring about uniformity in financial reporting on a global basis. Uniform accounting will reduce the costs of preparing financial statements for multinational companies and facilitate the jobs of investment analysts, investors and other users of company accounts in assessing business results. Many multi-national companies with bases in the UK are now adopting IAS, the EU now supports IAS as the appropriate means of harmonising international reporting, and they are now recognised by most stock exchanges worldwide.
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accordance with IAS accounting policy acquisition activities actuarial present value adjustment allocated amortisation applied arising asset or liability assets and liabilities balance sheet date basis business combination carrying amount cash equivalents cash flow statement cash-generating unit consolidated financial statements deductible deferred tax asset deferred tax liability depreciation determined disclosure discount employee benefits enterprise should disclose enterprise's estimated example exchange expected fair value finance lease financial asset financial instrument financial liability future cash flows future economic benefits gain or loss identifiable assets impairment loss included income statement income tax incurred intangible asset International Accounting Standards inventories investment property IOSCO joint venture jointly-controlled entity lease lessee negative goodwill operating option ordinary shares paragraph payments plan assets plant and equipment present value profit or loss Recognition and Measurement recoverable amount reporting enterprise result retained earnings revaluation revenue risk subsidiaries tax expense taxable profit temporary difference transactions