Question

.Was the IASC successful? Explain your reasoning.

Answer 1

IASC was founded in 1973. It was established to harmonise internantional accounting criterions. It aims to develop high quality and apprehensible international accounting criterions to steer transparent and comparable information nin fiscal coverage. It also aims to promote the usage and strict application of criterions. There are many advantages of harmonising such as better comparing between group company and subordinates in fixing consolidation of fiscal statement, higher quality and comparable information among companies to determination devising, better communications in internal coverage system, and reduce the hazard for fiscal establishments. Such advantages and vision of better presentation of financial statements promoted the establishment of IASC. not only this but it will also lead to a well-developed and good working capital market, and it ‘s a pre-condition for a good economic system and development.

As far as the success in harmonising is considered, the actions of various international stock exchanges are a positive indication. International Accounting Standards (IASs) are now accepted from foreign registrants on a large number of stock exchanges. Several stock exchanges do not even require any additional disclosures reconciling IASs to their country's own domestic GAAP. The International Accounting Standards Committee (IASC) receives widespread support for its efforts to harmonize international accounting. Indeed, the IASC is now regarded as the leading force in the international accounting harmonization effort.

However, every action has its reaction i.e., though its harmonisation policy is successful yet there are certain limitations imposed on it which does not make it super effectice but yes countering the limitations and several hinderances, IASC has become one of the most successful accounting bodies. IASC is now been called as IASB.