English For Accounting Task 1

GAAP (Generally Accepted Accounting Principles) is a principles that use for many accounting company for summarize or recording for their financial statement. GAAP not only use in United States, but today GAAP is going worldwide to become the most famous principles that accepted and used all over the world. GAAP have the four basic principles, such as the going concern principle, the prudence principle, the matching principle & the consistency principle.

            International Accounting Standards (IAS) is the former name of International Financial Reporting Standards (IFRS) that were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). On April 1, 2011 IASC is setting the new concept of IAS. They combine existing IAS and Standing Interpretations Committee standards (SICs). After that, The IASC continued to make the new standards that call International Financial Reporting Standards (IFRS) which used till now.

            International Financial Reporting Standards (IFRS) or the new standards that published by IASC. This standard consist of 3 basic accounting models, such as Current Cost Accounting, Financial capital maintenance in nominal monetary units & Financial capital maintenance in units of constant purchasing power. The IFRS have many parts that can summarize many financial transactions in a firm or company. Even, the local university in Asia & Europe adopted this standard to their curriculum for Accounting department.

            Now IFRS are used in many countries in the world, including the European Union, India, Hong Kong, Australia, Malaysia, Pakistan, Russia, South Africa, Singapore & Turkey. As the reports, there are 113 countries all over the world that use IFRS for their Financial Statement Standards. As the result for the International public interest, the investor and other users of financial statement can have a lot of benefits for use this standard. They are not only having a financial advantage for using this standard but also have a relationship advantage to using this standard. They can interact with another investor all around the world with one same perception behind the two of them.

            International Accounting Standards Committee (IASC) was the former of International Accounting Standards Board which replace IASC on April 1, 2011. The IASC was founded in June 1973 as a result from the International agreement between accountancy bodies in the following countries, such as Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom, Ireland & United States. Until now IASC had about 140 member bodies from 104 countries.

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