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IASC Board Financial

March 15, 2013 in News

There is no doubt, the usefulness of financial statements for administrative decision-making within and outside the company. However, the truth is, many companies to prepare their financial statements to users outside the company but with some commercial or contractual relationship. At the international level, even and when financial statements are very similar, there are many differences from one country to another in the form of elaborate them and present them, due to various circumstances, being social, economic and legal. But one of the most important reasons for these differences is the needs of the users of these financial statements, and the need for compliance with the accounting regulations of each country. This has led to the use of various definitions for the elements of financial statements such as assets, liabilities, assets, income and expenses. And, consequently, these circumstances have led to the use or application of different criteria for the recognition of the different items in the financial statements and at the same time, to the inclination toward certain preferences about the different bases of measurement.

That has caused that, both the scope and the information disclosed in the financial statements have been affected by the circumstances described. Accordingly, the Committee of international accounting standards (IASC, by its acronym in English) has the Mission of reducing such differences, what through the pursuit of harmonisation between regulations, accounting standards and procedures relating to the preparation and presentation of financial statements. For IASC broader harmonisation can be better pursued if efforts are focused in the financial statements that are prepared with the purpose of supplying information that is useful for making economic decisions. The IASC Board believes that financial statements prepared for that purpose needs common for the majority of users. This is because almost all users make economic decisions, such as for example the following: 1.-decide whether to buy, hold or sell financial investments of capital; 2 Assess the behavior or action by administrators; 3 To evaluate the ability of the entity to meet the payments and provide other benefits to its employees; 4 Evaluate the safety of the funds provided to the entity; 5 Determine taxation policies; 6 Determine distributable profits and dividends; 7 Prepare and use national income statistics; or 8.-regulate the activities of entities.

The Council recognizes that each Government, in particular, can set different or additional requirements for their own interests. However such accounting requirements should not affect the financial statements published for the benefit of other users, unless they also meet the needs of those users. Felix Miranda Quesada. Authorized public accountant. Certificate in international financial reporting standards.


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