Business Essentials, 12/e

Internationalizing Accounting

1. Objective 15-7 Describe the purpose of the International Accounting Standards Board and explain why it exists.

Accounting in its earliest forms is known to have existed more than 7,000 years ago in Mesopotamia and Egypt for recording trade transactions and keeping track of resources. With the passage of time, each country or region’s accounting practices were refined to meet its needs in commerce while also accommodating local cultural traditions and developments in its laws. Although unique practices served each region well, they later posed problems as international business became prominent. By the late twentieth century, it was apparent that the upsurge in multinational organizations and the global economy ...