This year marks the turning point for a new era of accounting based on global standards. Nearly 100 countries have adopted or permit the use of the International Financial Reporting Standards (IFRS) generated by the International Accounting Standards Board (IASB). From its base in London, the IASB is quickly completing its mandate to develop a single set of global standards that require transparent and comparable information in general-purpose financial statements.
All European countries and Australia adopted IFRS in 2005; New Zealand will adopt IFRS in 2007. Some other jurisdictions, including the Philippines and Singapore, base their national practices on international standards. In January 2005, the IASB and the Accounting Standards Board of Japan announced their agreement to launch a joint project to reduce differences between IFRS and Japanese standards. Canada has pledged that standards for public companies will converge with IFRS over a five-year transitional period. In the United States, the FASB is working with the IASB to converge U.S. accounting standards with IFRS. No deadline has been set.
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