How to Write a Paper on International Accounting Standards

Ethos Background

International Accounting Standards (IAS) play a pivotal role in ensuring uniformity and transparency in financial reporting across different jurisdictions. To write a thorough paper on this topic, it is essential to break down the complex tapestry of IAS evolution, highlighting the critical periods and the key figures involved in their development. This paper will not only provide a chronological overview of the genesis and development of IAS but also delve into the specific revisions and updates that have been made over the years to keep the standards relevant and applicable.

Introduction to International Accounting Standards (H2)

International Accounting Standards are a set of guidelines and rules designed to improve the quality and comparability of financial reports across different countries and industries. These standards are established by the International Accounting Standards Board (IASB), an independent body responsible for developing high-quality, understandable, and enforceable international accounting standards. The primary aim of IAS is to provide a common language for financial statements, making it easier for investors and stakeholders to understand and evaluate an organization's financial performance.

Origins and Development (H2)

The Birth of International Accounting Standards: IASC (H3)

The journey of IAS began with the establishment of the International Accounting Standards Committee (IASC) in 1973. IASC played a crucial role in developing the first set of international accounting standards, known as the Statements of Accountancy Standards (SAS). IASC was founded by a consortium of professional accounting bodies and aimed to harmonize accounting practices on an international level. In 1984, IASC issued Statement of Accounting Concepts No. 1, laying the foundational principles for the development of future IAS.

Transition to IASB (H3)

However, the creation of IASC was not without its challenges. In 2001, the IASC faced a significant overhaul due to its governance issues. It merged with the UK-based Financial Accounting Standards Board (FASB) to form the newly established International Accounting Standards Board (IASB). The IASB adopted a more robust governance structure, allowing it to operate as an independent entity dedicated to the continuous improvement of the IASs.

Chronology of IASs (H2)

The Early Years (H3)

Here, we will list the first few IASs that were issued and discuss the reasons behind their issuance. Each standard will be briefly explained, focusing on its key features and the impact it had on financial reporting.

IAS 1: Presentation of Financial Statements (H4)
Issued in 1978, IAS 1 established the basic structure of financial statements, including the income statement, statement of financial position, and cash flow statement. This standard emphasized the importance of clarity and consistency in financial reporting. IAS 2: Inventories (H4)
Issued in 1980, IAS 2 provided guidelines for the valuation of inventories, ensuring that businesses reported their inventory at the lower of cost or net realizable value. This standard aimed to prevent overstatement of inventory levels and ensure that financial reports reflected the true value of assets. IAS 3: Non-monetary Assets (H4)
Issued in 1981, IAS 3 covered the recognition of non-monetary assets, such as intangible assets and property, plant, and equipment (PPE). This standard was crucial in establishing the principles for recognizing and measuring these assets. IAS 4: Presentation of Financial Instruments (H4)
Issued in 1983, IAS 4 provided detailed guidelines for the classification, measurement, and disclosure of financial instruments. This standard aimed to enhance the transparency of financial instruments by requiring clear reporting and disclosure practices. IAS 6: Capitalization of Development Costs (H4)
Issued in 1984, IAS 6 addressed the treatment of development costs, establishing the conditions under which these costs could be capitalized. This standard aimed to prevent the premature recognition of development costs and ensure that financial statements reflected the true cost of assets. IAS 7: Cash Flow Statements (H4)
Issued in 1985, IAS 7 introduced the concept of cash flow statements, which provide a detailed breakdown of cash inflows and outflows. This standard was essential in providing stakeholders with a clearer picture of an organization's liquidity and cash-generating capabilities.

Evolution and Revisions (H2)

Revised IASs (H3)

As the financial landscape evolved, so did the standards themselves. Over the years, several IASs have undergone revisions to align with changing economic and regulatory environments. This section will highlight some of the most significant revisions and explain the rationale behind each update.

IAS 16: Property, Plant, and Equipment (PPE) (H4)
Originally issued in 1984 and revised in 2016, IAS 16 provided guidance on the recognition, measurement, and depreciation of PPE. The 2016 revision brought the standard more in line with the current understanding of asset management and introduced new requirements for impairment testing. IAS 37: Provisions, Contingent Liabilities, and Contingent Assets (H4)
Originally issued in 1995 and revised in 2014, IAS 37 offered guidelines for identifying, measuring, and disclosing provisions, contingent liabilities, and contingent assets. The 2014 revision aimed to enhance transparency and ensure that stakeholders had a clear understanding of potential financial risks. IAS 19: Employee Benefits (H4)
Originally issued in 1992 and revised in 2011, IAS 19 provided detailed guidelines for the accounting and disclosure of employee benefits. The 2011 revision introduced new requirements for recognizing and measuring defined contribution plans and introduced a new element called 'evelopments in IFRS'

Conclusion (H2)

The development and evolution of International Accounting Standards have been instrumental in ensuring the reliability and comparability of financial reports across the globe. From the establishment of IASC to the formation of IASB, and through ongoing revisions and updates, IASs continue to play a vital role in the global financial landscape. Understanding the origins, evolution, and ongoing development of these standards is essential for scholars, practitioners, and stakeholders alike. By staying informed and engaged with the latest updates, we can ensure that financial reporting remains a cornerstone of transparency and accountability in the business world.

References (H2)

[1] International Accounting Standards Board (IASB). (2023). International Accounting Standards (IASs). [Online]. Available at:

[2] International Accounting Standards Committee (IASC). (2023). History of IAS. [Online]. Available at:

[3] Financial Accounting Standards Board (FASB). (2023). Merger with IASC. [Online]. Available at:

[4] International Accounting Standards Bureau (IASB). (2023). Revisions to IASs. [Online]. Available at: