When was ifrs formed

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IFRS Foundation speeches. IFRS Foundation podcasts. Show Sections. About us The IFRS Foundation is a not-for-profit, public interest organisation established to develop a single set of high-quality, understandable, enforceable and globally accepted accounting and sustainability disclosure standards—IFRS Standards—and to promote and facilitate adoption of the standards.

We have updated our Privacy Policy. By continuing to use this website, you are agreeing to the new Privacy Policy and any updated website Terms. International convergence of accounting standards is not a new idea. The concept of convergence first arose in the late s in response to post World War II economic integration and related increases in cross-border capital flows.

Initial efforts focused on harmonization —reducing differences among the accounting principles used in major capital markets around the world. By the s, the notion of harmonization was replaced by the concept of convergence —the development of a unified set of high-quality, international accounting standards that would be used in at least all major capital markets.

The International Accounting Standards Committee, formed in , was the first international standards-setting body. Since then, the use of international standards has progressed. As of , the European Union and more than other countries either require or permit the use of international financial reporting standards IFRSs issued by the IASB or a local variant of them.

The Commission staff issued its final report on the issue in July without making a recommendation. The following is a chronology of some of the key events in the evolution of the international convergence of accounting standards.

Explores Adopting International Accounting Standards The s—Calls for International Standards and Some Early Steps Interest in international accounting began to grow in the late s and early s due to post World War II economic integration and the related increase in cross-border capital flows. Explores Adopting International Standards Beginning in the s, efforts to harmonize accounting standards internationally evolved into a broad convergence effort.

In the MoU, the two Boards reaffirmed their shared objective of developing high-quality, common accounting standards.

The MoU elaborated on the Norwalk Agreement, setting forth the following guidelines in working toward convergence: Convergence of accounting standards can best be achieved by developing high- quality, common standards over time. Instead of trying to eliminate differences between standards that are in need of significant improvement, the Boards should develop a new common standard that improves the quality of financial information.

Serving the needs of investors means that the Boards should seek to converge by replacing weaker standards with stronger standards MoU. The Statement makes clear that the SEC continues to believe that a single set of high-quality, globally accepted accounting standards would benefit U. The Statement also: Continues to encourage the convergence of U.

GAAP and IFRS Outlines factors that are of particular importance to the Commission as it continues to evaluate IFRS through Directs the staff of the SEC to develop and execute a work plan Work Plan that transparently lays out specific areas and factors for the staff to consider before potentially transitioning our current financial reporting system for U. In June , the FASB and IASB agreed to modify their joint work plan to a prioritize the major projects in the MoU to permit a sharper focus on issues and projects for which the need for improvement is most urgent and b phase the publication of exposure drafts and related consultations to enable the broad-based and effective stakeholder participation that is critically important to the quality of the standards.

It also describes how the Boards modified aspects of their plans for other projects in order to put them in the best position to complete the priority projects by the June target date. Read the full meeting report. The Boards were giving priority to three remaining projects on their MoU financial instruments, revenue recognition, and leasing as well as their joint project on insurance.

The Boards also agreed to extend the timetable for those priority projects beyond June to permit further work and consultation with stakeholders in a manner consistent with an open and inclusive due process. The Boards issued a progress report that provides details on the timeline for completion of the MoU projects. These issues include, among others, the diversity in how accounting standards, including IFRS, are interpreted, applied and enforced in various jurisdictions around the world; the potential cost to U.

S issuers of adopting or incorporating IFRS; investor education; and governance.