Paper Details
Convergence of Accounting Standards on Consolidated Financial Reporting Practices
Authors
Kiran Choudhary
Abstract
Convergence is the process by which standard setters across the globe to discuss accounting issues, drawing on their combined experiences in order to arrive at the most appropriate solution to resolve the issues. Accounting standards or policies made by different international organizations which come under two categories; those backed by International or Political agreements which includes the United Nations and the European Union and Voluntary organizations which includes IASB, IFAC, IOSCO, and the European Financial Reporting Advisory Group. Further it includes, Confederation of Asia Pacific Accountants, American Accounting Association, The British Accounting Association, The Indian Accounting Association etc. This paper focus on the, Early Developments in convergence, need for Convergence, Challenges of Convergence with relation to consolidated financial reporting and accounting practices. The result of this paper reveals that accounting standards have substantially converged with US GAAP, at least in the area of consolidated financial reporting, but there still exist some differences between the two referential which discussed in this paper.
Keywords: - Accounting, IFRS, Convergence, Consolidated Financial Reporting, IASB.
Introduction: -
The globalization is a worldwide booming phenomenon, a long process, whose complexity and irreversibility are now recognized, accepted and acknowledged by the vast majority of countries. It is obvious that the benefits of the existence of a common and uniform financial reporting framework, which is based on the globally accepted accounting standards, are more pronounced in the current conditions of globalization.
Keywords
Accounting, IFRS, Convergence, Consolidated Financial Reporting, IASB
Citation
Convergence of Accounting Standards on Consolidated Financial Reporting Practices. Kiran Choudhary. 2024. IJIRCT, Volume 10, Issue 3. Pages 1-4. https://www.ijirct.org/viewPaper.php?paperId=2406064