The International accounting standards (IAS) based on Law are used to organize the processes and financial transactions of the business. The large companies and corporations always use International accounting standards with the aim of making the organization more transparent and trustworthy. In this context, we discuss International Accounting Standards 1 to end.
Aims of international accounting standards(IAS)
International accounting standards allow companies to have better control of their revenues and activities through accounting reports and statements. The international accounting standards aims is to define actions that must be followed by the organizations for the disclosure of information, standardization, and recognition of financial, accounting, and equity reports. The international accounting standards highlight the accounting principles, that raise the level of reliability, clarity, and understanding of the financial statements.
The international accounting language
The organization needs to follow international accounting rules, and basic accounting principles, to bring harmonization of the accounting process by allowing a unique language between the accounting systems of other countries, enabling a better exchange of information. It also improves the communication in the business world.
A harmonious accounting language is essential to the markets, that enable the integration of information between countries, ensuring transparency and reliability. Otherwise, it is difficult to understand the accounting procedures of others countries’ organizations.
List of International Accounting Standards(IAS)
The list of International Accounting Standards are:
International Accounting Standards 1
The objective of International Accounting Standards 1 is to establish the basis for the presentation of financial statements, guidelines for determining the business structure, and minimum requirements on content.
International Accounting Standards 2
International Accounting Standard 2 provides a guideline on the cost formulas and inventories.
International Accounting Standards 7
International Accounting Standards 7 provide information about cash flows through the presentation of a statement of cash flows. The cash flow statement is classified according to operating, investing, and financing activities.
International Accounting Standards 8
The International Accounting Standard 8 objective is to prescribe the accounting policies as well as the changes in accounting estimates and errors.
International Accounting Standards 10
Events after the reporting period
International Accounting Standards 11
International Accounting Standard 11 gives practical guidelines for the accounting treatment of revenue and costs related to Work under a construction contract.
International Accounting Standards 12
International Accounting Standard 12 applied accounting treatment for all domestic and foreign income taxes.
International Accounting Standards 16
The International Accounting Standard 16 shall be applied in accounting for items of property, plant, and equipment, so that users of financial statements can know the information about the investment.
International Accounting Standards 17
The International Accounting Standard 17 will be applicable when accounting for all types of leases for example Finance lease, Operating lease and Non-cancellable lease, etc.
International Accounting Standards 18
The financial statements, income, and expenses are directly related to the Income Statement. The International Accounting Standard 18 should be applied when accounting for ordinary income from the transactions and events like sale of goods, provision of services; or by third parties, etc.
International Accounting Standards 19
The objective of International Accounting Standard 19 is to prescribe the accounting treatment and disclosure of financial information regarding employee benefits.
International Accounting Standards 20
International Accounting Standard 20 applied to the Accounting for Government Grants and Aid.
International Accounting Standards 21
The objective of the International Accounting Standard 21 standard is to prescribe transactions and effects of changes in exchange rates of currency.
International Accounting Standards 23
International Accounting Standard 23 shall be applied by the entity in accounting for borrowing costs. The borrowing Costs are issued by the International Accounting Standards Board.
International Accounting Standards 24
International Accounting Standard 24 purpose is to the disclosure of related parties.
International Accounting Standards 26
International Accounting Standard 26 specify measurement and disclosure principles in the preparation of financial statements, accounting, and financial information on retirement benefit plans. measurement and disclosure principles
International Accounting Standards 27
International Accounting Standard 27 will be applied in the preparation and presentation of the consolidated and individual financial statements. Separate financial statements are subsidiary by themselves.
International Accounting Standards 28
International Accounting Standard 28 shall be applied for accounting for investments in associates, joint ventures, or related companies.
International Accounting Standards 29
International Accounting Standard 29 shall be applied to the financial statements, as well as financial information in hyperinflationary economies.
International Accounting Standards 31
International Accounting Standard 31 shall be applied for interests in joint ventures
International Accounting Standards 32
International Accounting Standard 32 purpose is to establish principles for the financial instruments (presentation).
International Accounting Standards 33
International Accounting Standard 33 describes principles for the determination, presentation, and calculation of the earnings per share.
International Accounting Standards 34
International Accounting Standard 34 purpose is to establish the criteria in the preparation of the interim financial statements.
International Accounting Standards 36
International Accounting Standard 36 will be applied for accounting for the impairment of assets.
International Accounting Standards 37
International Accounting Standard 37 will be applied in accounting for provisions, contingent liabilities, and contingent assets.
International Accounting Standards 38
The objective of International Accounting Standard 38 is to prescribe the accounting treatment for intangible assets.
International Accounting Standards 39
The objective of International Accounting Standard 39 is to establish the accounting principles for the recognition and measurement of financial instruments.
International Accounting Standards 40
The objective of International Accounting Standard 40 is to evaluate and disclosure the information of real estate investments and prescribe the accounting treatment of investment property,
International Accounting Standards 41
The objective of International Accounting Standard 41 is to prescribe the accounting treatment and the information to be disclosed in relation to the agricultural activity like in biological assets, agricultural products for harvesting, etc.
What are the international accounting standards?
The accounting standards that define the ways to record and classify the performance of operations and cash flows, economic and financial events that occur in companies. The accounting standards are applied in different countries are the same, so that the understanding of the information will flow naturally.
How many international accounting standards are there?
There are two International Accounting Standards, that were issued before 2004, are called IAS – International Accounting Standards and the IFRS- International Standards Report Financial issued from 2004.
What do the IAS and IFRS stand for?
- IAS stands for International Accounting Standards
- IFRS stands for International Standards Report Financial
What are the 3 rules of accounting?
There are three golden rules of accounting. These rules describe how debits and credits should be handled.
The first rule– record every transaction
The second rule– the importance of entering information (what is lost and what is gained)
The third rule– debits and credits concepts
What are 3 types of accounts?
There are three types of accounts.
- Real Account
- Personal Account
- Nominal Account