International Accounting Perspectives Coursework

International Accounting Perspectives - Coursework Example Being developed after an international consultation, international financial reporting standards are made after a due process. The standards are made through a process that consists of six stages. These includes setting the agenda, planning the project, developing and coming up with the discussion paper, developing and publishing the exposure draft, developing and publishing the standard and after the standard is issued. One of the major features of international financial standard includes fair presentation and complying with IFRS. This implies that all the transactions must be represented in a faithful manner. The income, expenses, liabilities and assets must be represented as outlined by the IFRS framework. The second feature of International Financial Reporting is that it ensures the principle of going on concern. This implies that financial statements must treat a business as a going on concern unless the owners want to cease trading or liquidate the company. Other key features of International Financial Reporting include offsetting, frequency of reporting, accrual basis of accounting, materiality, consistency of presentation and comparative information. One of the major goals of International Financial Reporting Standards is to provide guidance for the preparation of financial statement instead of setting rules that an industry is supposed to follow while it is reporting its financial position. It is worth to note that by use of International Financial Reporting Standards especially by firms operating globally, it is possible to emulate a reporting language that can be easily understood by auditors and investors. With more than 100 countries requiring all the public companies to apply the IFRS, the accounting policies globally will greatly improve by 2015. International Accounting Standards Board (IASB) was formed in March 2001 in United States as a non profit firm. During the establishment of the organization, the purpose was