International Accounting Standards Essay Example | Topics and Well Written Essays - 4000 words

International Accounting Standards - Essay Example The fair value system has all together improved the information to the individual users of the economy. International Financial Reporting Standard (IFRS): IFRS is a private sector organization which is working for the interest of public. The main objectives of IFRS foundation are: 1) It creates a single set of quality which is understandable and enforceable worldwide. The standard setting body that helps in formulating the standards for the organization is the International Accounting Standards Board (IASB) (IFRS Foundation. 2013k). 2) They are responsible for promoting the use and application of those standards. 3) They are accountable for reporting the financial needs of the small and medium sized companies. 4) They are also responsible for safeguarding the working of IASB thus ensuring the financing of the organization. The Trustees of the organization are accountable for Monitoring Board of the Public Authorities (IFRS Foundation. 2013k). International Accounting Standards Board: IASB is the standard setting body under the governance of IFRS Foundation. ... 2013g). There are few standard setting duties which IASB had to fulfil. In doing so, it has to go through an open and thorough process which is also transparent for public comment and discussion in papers or exposure to drafts. It connects successfully with the stakeholders worldwide. Like the analysts, regulators, investors, business leaders and accounting standard setters. Fair Value: IFRS 13 has defined fair value as the price that is â€Å"received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement dates† (IFRS Foundation, 2013e). The fair value system sets a single IFRS framework for measuring the fair value. After measuring it is disclosed to the public. Here, IFRS plays an important role in managing and measuring the fair value system. Supporting the objectives of the IFRS Foundation: The activities that are undertaken by the IFRS Foundation for fulfilling the objectives of organization are taken car e by the staffs of IFRS Foundation. Those activities included the following: 1) The important activity of IFRS foundation was to provide the worldwide capital market with a common language of financial reporting. Thus XBRL taxonomy is created by IFRS for the SMEs to facilitate electronic usage, comparability and exchange of the financial data which are prepared according to the IFRS norms. The activity is executed by the IFRS XBRL team members. They are responsible for maintaining and developing XBRL representations of IFRS which is known as the IFRS taxonomy. Taxonomies are the organized categorization schemes which are also â€Å"computer readable dictionaries† (IFRS Foundation, 2013a) 2) They are involved in production of good quality and up to dated materials which