Convergence of Accounting Standards on Consolidated Financial Reporting Practices
Author(s): Kiran Choudhary
Publication #: 2407080
Date of Publication: 26.07.2024
Country: India
Pages: 1-6
Published In: Volume 10 Issue 4 July-2024
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, Important points of Convergence with relation to consolidated financial reporting and accounting practices. The result of this paper reveals that accounting standards have substantially converged with accounting standards, 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.
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