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Accounting standards can provide a
financial reporting framework that
delivers transparent, consistent,
comparable, relevent and reliable
financial information. Such standards
are fundamental for economic efficiency
and financial stability. However, while
accounting standards must be high
quality, they also must be supported by
an infrastructure that ensures that the
standards are rigorously interpreted
and applied, and that issues and
problematic practices are identified
and resolved in a timely fashion.
The International Accounting
Standards Board (IASB) has set out
principles to be observed in the
preparation of financial statements. A
total of 41 standards have been issued
to date, of which seven have been
replaced. Interpretation documents for
these standards are also published to
promote understanding.
In October 1999, the Financial
Accounting Standards Board (FASB)
completed a study of the similarities
and differences between U.S. Generally
Accepted Accounting Principles (GAAP)
and IAS. The attached self-assessment
is a summary of that study.
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