8
national accounting standard
to
minimize the
individual’s
fraud. This
has
uniformed the
diversity in accounting financial report within country.
Gernon
&
Meek
(2001,
p.39)
defines
“Accounting standards are the rules for
preparing
final
statements:
that
is
the
“generally
accepted
accounting
principles”
(GAAP) that specify the type of information that financial statements ought to contain
and how that information ought to be prepared.”
2.2 IFRS Overview
2.2.1 History of IFRS
Time passed by
from the
Great
Depression
Era
until the early 1960, the
national
boundaries begin to glaze over the capital markets,
investors,
creditors and others who
use
the
financial
information
company
reports began
to
complain
about
the
lack
of
comparability of financial information from one country to the others. They also voiced
concerns about the
lack of
transparency
in corporate reporting.
Their concern
led
to the
call
for
harmonization of
accounting
standards
(making
national
accounting
standards
that are consistent between the countries), especially among countries with developed
capital markets (Alfredson et al, 2005, p.7).
Alexander et al (2009, p.40) defines,
“Harmonization
is
a
process
of
increasing the
compability of
accounting
practices
by
setting bounds to their degree of variation”
In
1972,
Sir
Henry
Benson
from
the
United
Kingdom
made
a
proposal
for
an
International
Accounting
Standards
Committee
(IASC).
The
proposal
at
the
congress
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