The International Accounting Standards Board (IASB) refers to the organizational body in the International Financial Reporting Standards (IFRS) Foundation. The IESB deals with the publication, development, as well as the clarification for the IFRS standards.
Structure
The structure of the organization contains two major components. First is the IASC foundation. This is an independent organization with two major bodies, including trustees and the IASB, and the standard advisory council, as well as the international Financial Interpretations Committee. The other part of the structure is the IASC foundation trustees. They appoint a member of the IASB to raise the needed funds, as well as exercise oversight ( Lozada, 2014) . Essentially, IASB has the significant responsibility of steering the standards of accounting.
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Brief History
IASB was established as a London-based entity in 2001. Primarily, the reason for the establishment of the entity was to seek and enforce the standards for accounting procedures. Today, the organization is in more than 100 nations requiring these nations to comply with the standards of IASB ( Hütten & Sessar, 2012) . It was preceded by the International Accounting Standards Committee (IASC), which was the parent organization.
Principle-based and Rule-Based Accounting Techniques
Principle-based approaches of accounting state that the financial statements of an organization must be readable, understandable, comparable, as well as relevant to the current business operations. Rule-based method asserts that people need to follow strict and explicit rules of accounting that are always used by accountants when developing financial statements and other documents.
Benefits and Barriers for Single Standard
There are three significant benefits of a single set of international standards of accounting. First, it enhances comparability between organizations hence reducing the investor's risk and, at the same time, promote financing and investment across borders. It also lowers the cost of preparing the consolidated financial statements for international organizations ( Hesselink & Chappin, 2019) . Finally, it enhances the reliability and credibility of the financial reports of companies.
The first barrier that would hinder the applicability of single accounting standards is the conflict of interest among the parties. Different entities have varied interests and motives that would lead them to adopt single standards. Individuals are likely to react negatively if their motives were not met. Another challenge is the politics of different nations which differ and may tend to have control over the standards.
References
Hesselink, L. X., & Chappin, E. J. (2019). Adoption of energy-efficient technologies by households–Barriers, policies and agent-based modelling studies. Renewable and Sustainable Energy Reviews , 99 , 29-41.
Hütten, C., & Sessar, C. (2011). International Accounting Standards Board (IASB). https://madoc.bib.uni-mannheim.de/34159/
Lozada, A. R. (2014). International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) Convergence Project: Where Are They Now? Journal of Modern Accounting and Auditing , 10 (10).
