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This exposure draft is the first product of the IASB’s Improvements project, which aims to raise the quality and consistency of financial reporting by drawing on best practice from around the world, and removing options in international standards. The Improvements project is a first step by the IASB to promote convergence on high quality solutions in its objective to establish a globally accepted set of accounting standards.
The release of the Exposure Draft marks the IASB’s initial response to the demand for the continued development and rapid improvement of international standards by market participants, including regulators through the International Organization of Securities Commissions (IOSCO), national standard-setters, the IASB’s Standards Advisory Council and other commentators. The project has been given added impetus by the European Union’s proposals to require publicly listed companies to use international standards from January 2005.
Exposure Draft of Proposed Improvements to International Accounting Standards
According to an FT article , accountancy experts have expressed concern “that the International Accounting Standards Board (IASB) is already diluting its principle-based approach to standard-setting with US-influenced rules to secure support and acceptance in the US”
However, the new international accounting regulator has signalled that it will not bend to US pressure in its pursuit of harmonised global standards.
“In reality”, experts say as stated in an other FT article, “both the Financial Accounting Standards Board (FASB) in the US, and the IASB in London, are developing standards based on a combination of the two approaches.”
Exposure Draft of Proposed Improvements to International Accounting Standards
FT article: Accounting body 'will not yield to pressure from US
FT article: Global accounts bodies move to align standards