What are at least three International Accounting Standards? Are these standards the same as U.S. standards? Explain your response. Is it necessary to have global standards? Explain yourresponse.Three IAS are Business combinations, Borrowing costs and Related party disclosures. These standards are not the same as U.S. standards. Since it has no enforcement authority, the IASBmust rely on the “best endeavors” of its members. Neither the FASB nor the SEC is a member of the IASB, so its standards have no authority in the United States at the present time. However, the SEC recently ruled that foreign companies that adopt IASB standards are eligible to list their securities for sale on U.S. stock exchanges. The forces driving the US toward the use of global accounting standards existed well before the current credit crisis and will continue to exist after the economy has recovered. The current economic crisis has exposed the interdependent nature of global business, and financial and capital markets, making the need for global accounting standards more apparent.++References:+Schroeder, R. G., Clark, M, W., & Cathey, J. M. (2011). Financial accounting theory and analysis: Text and cases (10th ed.). Hoboken, NJ: Wiley.http://www.pwc.com/us/en/point-of-view/global-accounting-standards.jhtmlResponse 2There are so many international standards how can you pick three.+ There are many standardsthat are similar to US standards like statements of cash flows, revenues, and inventories.+ These are similar because the information that is used to create those reports is the same.+ Butthere are also those standards that we may not necessarily see in the US like borrowing costs and related party disclosures.+ If there are US standards that relate to these international standards they could be stated differently.+ Internationally, businesses and governments rely on their members to be honest on there accounting practices because there is no governing body over them to make sure that fraudulant behavior does not
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