A perspective on the recent developments in international financial reporting

Abstract

The objective of the present paper is to provide a synopsis of the recent international financial reporting developments as well as to identify some of the related worldwide implications. The unprecedented joint activity of the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) has caused, in the last decade, a series of debates on whether or not International Financial Reporting Standards (IFRSs) represent what is best of the international accounting practices. The adoption of these IFRSs by more than one hundred jurisdictions around the world is probably one of the most important recent changes in financial information environment. In this context it is imperative to examine the position of the United States of America and European Union in relation to the endorsement of these standards, in order to differentiate the institutional decisions able to influence greatly the adoption process. Moreover, this paper explores several aspects connected to the changes in IASB’s conceptual framework and in the main accounting standards. From the proposed analysis, it emerges the image of IASB’s standards complex nature and the role played by these recent developments in reshaping the future of accounting