The International Financial
Reporting Standards (IFRS) and the International Accounting Standards (IAS)
serve as a conceptual framework for accounting for the activities of
enterprises and the preparation and presentation of financial statements for
their reports. Their treatments are subject to discussions with a practical
application nature to improve the accounting of businesses transactions, and
processes arising from the business of the enterprises. The number of standards
are constantly changing due to re-evaluation of current standards. New
standards are constantly being discussed or replacing old ones, which is
apparent with IAS 18 and IFRS 15, so that there is unity in the comparability
of the information received from the financial statements between different
entities. This is the core principle of convergence. Convergence of accounting
standards ‘is the process of harmonising
accounting standards issued by different regulatory bodies’ (CIMA, pg.3,
2006). Some of the main principles in accounting are for financial
information or reporting to have clear transparency, credibility and
compatibility, and so in doing, this convergence of world-wide accounting
standards makes them easily accessible, applicable and user-friendly.


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