Development organizations, international accounting standards

Development organizations, international accounting standards

There are several organizations aimed at development of international standards and to create the climate necessary for the application of these standards and most important of these organizations:



First: the International Federation of Accountants IFAC.

Second: The International Accounting Standards Committee IASC.

Third: The Committee on the Exercise of the international scrutiny of IAPC.



International Federation of Accountants (IFAC)

A global organization of the accounting profession was founded in 1977, its membership includes 155 member organizations in 118 countries, representing more than (2.5) two and a half million accountants.

The Union aims to strengthen the accounting profession in the world and contribute to the development of a strong international economy through the establishment of professional standards and high level to encourage adoption. To achieve its functions. The Union has a close working relationship with bodies and organizations of accounting associates in various countries around the world.

The committees of the Union has developed the following criteria:

- International standards for review and confirmation services.

- International standards for quality control.

- International rules of ethics.

- International qualification standards.

- International Accounting Standards in the public sector.

The union membership in some of the accounting bodies in some Arab countries such as Bahrain, Egypt, Iraq, Lebanon, Morocco, Saudi Arabia and Tunisia.




And implement the Programme of Action of the Union before the following committees:

1 - Education Committee:

And set standards of education and training qualification required to practice the audit (legal accountability) as well as continuing professional education for members of the profession on the Committee's statements be subject to the approval of the Council.

2 - Professional Conduct Committee:

And set standards of professional ethics and enhance their value and accepted by the member organizations with the consent of the Federation Council.

3 - the Committee on Accounting and Financial Management:

Working on the development of financial accounting and management by creating the environment that increase the level of efficiency of management accountants in society in general, and render the necessary data directly on behalf of the Federation Council.
4 - Public Sector Committee:

And develop standards and programs aimed at improving the financial management of the public sector and its accounting

Union membership

n Member of the International Federation of Accountants open to accountancy bodies recognized by law or by virtue of consensus in their home countries as organizations of the importance of a good reputation in the accounting profession. Include membership in the International Federation of Accountants Member of the Committee on International Accounting Standards. The number of accountants in the member organizations of the International Federation of Accountants almost 2.000.000 accountant in professional work and private education and government.





(Commission) International Accounting Standards Board

06/29/1973 Founded in the International Accounting Standards Committee (IASC), following an agreement between the associations and professional institutes in the leading (Australia, Canada, France, Germany, Japan, Mexico, Howlandp, United Kingdom, Ireland, USA) and the objective was to The Committee shall prepare and publish accounting standards and to support the acceptance and adherence to and strengthening the relationship between them and the International Federation of Accountants (IFAC). And considered the Accounting Standards Committee formed after the civil liability and issued statements on behalf of the assets of international accounting.

And has acquired the International Accounting Standards Committee widely recognized its competence and joined by a large number of professional associations in most countries of the world, whether Europe or Asia or elsewhere, which led in 1982 to join all the professional accountancy bodies, which was a member of the International Federation of Accountants ((which was comprising two hundred professional body around the world)) to the International Accounting Standards Committee, where the issuance of 41 accounting standard internationally.

In 2000, the restructuring of the Standards Committee and the Statute of them and was named International Accounting Standards Board (IASB), which was considered, starting from April 2001 is responsible for issuing international accounting standards instead of the Standards Committee as adopted by this Council all accounting standards issued by the Standards Committee International
As the Board in 2002 to re-label ((Commission interpretations)) (SIC) and switch the label to the ((committee interpretations of international standards for the preparation of financial reports)) (IFRIC) aims to explain and clarify the accounting standards existing in addition to providing instructions and guidance permanently on the existing international accounting standards and on the International Financial Reporting Standards.





International Accounting Standards Board IASB

After about 25 years from the beginning in the development of standards, there is a need to change the structure of the Commission. The new format is

International Accounting Standards Board IASB, which has the responsibility for the development of International Financial Reporting Standards.

- Council was formed in 2001 to replace

- Replaced the Commission

- International Accounting Standards.

The application of international accounting standards in the world

The application of international accounting standards in the world







In most European countries and through professional bodies working there, and through efforts made by the Commission on international standards recommended by the International Organization for guarantees (ISOCO) in Europe that are using international accounting standards as recommended by the Advisory Group for the European Financial Reporting (EFRAG) after in-depth studies and negotiations acceptance of international accounting standards and indicated that these standards do not contradict with the standards used in Europe. It was the recommendation of the International Organization for guarantees (ISOCO) and the Consultative Group of the European Financial Reporting (EFRAG) a significant impact in supporting the international accounting standards and their application in Europe.





In the Arab world, we find the following:



In the Arab Republic of Egypt is an Egyptian version of accounting standards keep pace with developments in the Egyptian economy and in accordance with international accounting standards, where the Standing Committee of the Accounting and Auditing Standards to prepare the Egyptian Accounting Standards and has been issued Ministerial Decree No. / 503 / for the year 1997. Despite the naming of these standards on behalf of the Egyptian Accounting Standards, it is a translation as we have almost entirely to international accounting standards. And the dedication to apply international standards indirectly.



And in Saudi Arabia, the Saudi Organization for Certified Public Accountants develop accounting standards are derived from private international accounting standards translated into Arabic, where the standards were adopted for the application by the operating companies.



As for Lebanon, has been the adoption of international accounting standards as a basis for accounting entries and to prepare the data, and financial reporting by institutions and various bodies and companies and has been issued Ministerial Decree No. / 673 / Date June 14, 2001 as the union has an expert accountants certified in Lebanon, the translation of accounting standards International English into Arabic.



In the Hashemite Kingdom of Jordan has been translated international accounting standards by professional bodies to seek to apply to the companies and by those working in the audit and accounts.



In Syria, will be the adoption of international accounting standards in companies that will be recorded in the Damascus Stock Exchange is also now working to amend the uniform accounting system in line with the standards the basic premises of the International Accounting Standards


Accrual basis: financial statements are prepared on the basis of

Entitlement and not a cash basis.

Continuity: The accounting statements are prepared on the assumption that the project is continuing in the foreseeable future, that are disclosed in cases contrary

To that assumption.

Areas of the use of accounting

Areas of the use of accounting

















Accounting used in the various economic units that practice a certain activity in order to achieve a particular goal, regardless of the nature of this activity or legal form for these units, and that the use of accounting and a broad and multi-varies as economic units. And these units can be classified as economic, according to the following:



First: in terms of the nature of the activity:




1 - commercial: Kmencat wholesale and semi-wholesale and retail.



2 - Industrial: as factories that convert various raw materials to finished goods or semi-ready.



3 - extraction: agriculture, mining and petroleum.



4 - Finance: such as banks and insurance companies.



5 - Transportation: such as lines of ground and air and sea.



6 - the liberal professions: lawyers, accountants, engineers and doctors.



7 - Public Utilities: such as electricity, water and telephone.



8 - of non-profit organizations: such as electricity, water and telephone.







Second: In terms of legal form:


1 - individual projects: It includes all projects that are owned and managed by one person, the purchase and sale of goods by himself and is responsible for the project.



2 - businesses of all types: including all enterprises owned by more than one person, whether public or private

The objectives of financial accounting

The objectives of financial accounting

Can be divided to the objectives of financial accounting objectives associated with side Applied and objectives linked to the theoretical side.



A - goals that are related to applied side




1 - providing a complete record of all financial operations of the facility whether they relate to Palmserfat and income or receivables, etc. .......



2 - determine the outcome of the business of the profit or loss during a financial period.



3 - Determine the financial position of the facility at the end of the financial period.







B - basic objectives of the theoretical side of science.


Preparation of periodic reports required for the different administrative levels, which helps in making rational decisions.

Provide data and information that serve the symptoms of external users such as suppliers and lenders

Providing data and information that serves government agencies for taxation purposes in the areas of the preparation of general plans at the state level.

Provide information on the economic resources of the project and obligations as a result of obtaining those resources.

The emergence and development of accounting

The emergence and development of accounting



History and Development of Accounting



Accounting is the language of handling the affairs of life and the language of economic, social and financial as they are the language of business, they are logged on economic relations, financial and social terms of numbers. It is therefore essential for each facility to use accounting information in managing their work and a basis for decision-making and to identify the results of their work, as well as identify the types of investment and sources of funds, the basic function of accounting is to find the record governing the activities of daily economic, expressed in monetary units.



Genesis Accounting



Man knew accounting since the beginning of human civilization, and most studies indicate that more sophisticated accounting systems, the old system was defined by the Pharaohs in Egypt, where he records the accountant used to count the amount of the wealth of kings, emperors and pharaohs.

With the emergence and development of the Islamic state (after the year 600 AD) has developed accounting applications where established government offices and agencies concerned with public money and perhaps the most famous house of money established by the Caliph Omar Bin Al Khattab may Allah be pleased with him, has seen a medieval beginnings of accounting systems to account for assets of the farms owned by the feudal lords in England and recording of expenditures and revenues of those farms.



And until the beginning of the tenth century AD, was the accounting records primitive little more than notes prove the merchants and money-lenders their financial futures with others in order to show the implications of these transactions from the rights and obligations, and cash transactions merchant was evaluated through its control of personal without the need for registration was launched with a number this method in the recording of financial transactions single-term limitation.



The impact of the industrial revolution in the evolution of accounting where it has large-scale projects to replace the individual projects, the need arose to capital to finance large projects and management separated from ownership.

With the development of industrial companies and the emergence of monopolies and joint stock companies and then the multinational corporations and the emergence of giant companies from the industrial, commercial and financial, have developed accounting and numerous branches, means and methods, and found the bodies of the accounting independent has been operating on the development of accounting and conducting research and studies and make recommendations and the development of accounting principles that enable this flag to keep up with all economic developments.



The concept of accounting



The accounting system provides the backdrop to provide accounting information to managers and investors, customers and others through the menus and reports the different accounting and so on, the concept of accountability is a conversion of accounting data (inputs) to the reports and lists of (output), carrying out some operations such as registration and the tab and the summary by using some means to to produce this information.



The use of accounting



Accounting used in the various economic units that practice a certain activity in order to achieve a particular goal, regardless of the nature of this activity or legal form for these units, and that the use of accounting and a broad and multi-varies as economic units. And these units can be classified as economic, according to the following:



First: in terms of the nature of the activity:

1 - commercial: Kmencat wholesale and semi-wholesale and retail.

2 - Industrial: as factories that convert various raw materials to finished goods or semi-ready.

3 - extraction: agriculture, mining and petroleum.

4 - Finance: such as banks and insurance companies.

5 - Transportation: such as lines of ground and air and sea.

6 - the liberal professions: lawyers, accountants, engineers and doctors.

7 - Public Utilities: such as electricity, water and telephone.

8 - of non-profit organizations: such as electricity, water and telephone.

Second: In terms of legal form:

1 - individual projects: It includes all projects that are owned and managed by one person, the purchase and sale of goods by himself and is responsible for the project.

2 - businesses of all types: including all enterprises owned by more than one person, whether public or private.

Assumptions and accounting principles

Assumptions and accounting principles




Accounting assumptions



Adoption of financial accounting on five basic assumptions are:

1. Assuming the unit of accounting: This means the assumption that the project's independent judicial personality and recording financial transactions in the books were mainly associated with these personal, independent, even if possessed by different people or multiple. Based on this assumption the accountant to conduct operations accounting for this project as a separate unit and not the owners of this project is multiplied or Gulwa.

2. Continuity assumption: This means the assumption that the facility and found to continue in the exercise of its ordinary indefinite period of time. This means that revolve balances the current year to the next year ((eg balances customers)).

3. Assuming the unit of measurement: This means the assumption and the existence of a unit of measurement common link between the various processes and activities at the facility and allow for calculations and comparisons. Accounting based on a national currency basis to measure the value of the various events of interest to the accountant.

4. Assumption of the accounting period: returned are limited to one calendar year beginning on 1 / 1 of each year and end on 31/12 for the same year and is measured in profit and financial position as at the end of the accounting or at the end of the year.

5. Assuming the balance accounting: This means the assumption that all the accounting operations launched from a perfect balance between the parties to the constraint accounting party to the debtor and the creditor making the algebraic sum of any accounting entry is equal to zero and must be balanced the budget and the balance of audit and help this purpose, the possibility of detection errors caused by lack of balance.





Accounting principles



1 - the historical cost basis: The historical cost of any out of a purchase plus all expenses paid so that the parent is ready for use.

2 - the principle of Revenue: Revenues realized at sale and are measured in monetary terms and that the production that was not sold during the accounting period is the historical cost price evaluation for the purposes of calculating profit.

3 - the principle of interview expenses income: and this principle is to link the revenue expenditure to be made accessible to the average net profit.

Definition of financial accounting

Definition of financial accounting





Definition of financial accounting:

Accounting is a branch of Administrative Sciences, which means the financial information, and is an accountant who would collect and process such information in ways that art was able to take advantage of his relationship with them, and the final product of these processes are the financial reports.

- Financial Accounting: - is a set of assumptions, rules and scientific principles generally accepted that control the process of recording and tabulating the financial operations of facility specific, depending on a set of documents, books and financial statements in order to determine the outcome of the work and activity of the facility for a certain period and imaging of the financial position at a specified date, The accounting as a means to provide financial information to both management and non-so that they can build upon to take decisions and economic development, and is third in the facility owners, investors, and lenders, and suppliers, and experts from the capital market, financial consulting, and financial analysts, trade unions, chambers of commerce, and various government bodies Kmsalehp taxes. According to the project as Mahasppiadarp in various areas such as assistance in planning and policy-making and identify the financial positions of those who collaborated with the facility and other services and are therefore truly represent - as described by some - the language of business.


And accounting can be defined technically as defined by the American Accounting Association as: the process of identifying and measuring and communicating economic information to enable beneficiaries to act in light of clear vision.