CHAPTER 2

Setting International Standards

About This Chapter

We start this chapter by explaining some accounting terms before examining the details of standard setting. These terms are important as they are either used in individual accounting standards or describe the assumptions used in developing a standard.

The International Accounting Standards Board (IASB) is the workhorse for setting standards and is responsible to the International Financial Reporting Standards Foundation Trustees. We describe later the process followed by the IASB in producing a standard. It is a lengthy process and incorporates opportunities for the preparers and users of financial statements to comment on the various stages.

Most standards, although they deal with ...

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