9
was
discussed
by
the
representatives
of
the three AISG countries (Canada, UK, and
USA). When it was done, the proposal was completed with other representatives from
several countries such as Australia, France, German, Japan, Netherlands, and Mexico.
Finally, all
the
nine
countries
made
an
agreement
to
establish
the
IASC
and
officially
launched their first headquarter in 1973 in London. All of the nine countries also had a
place
on
the
IASC
board.
The
IASC
board
had an
authority
to
set
the
International
Accounting Standard (IAS). Each of the representative countries has made a
consignment
to
use
all
their
dedication
to
convert
their
national
GAAP
into
IAS.
In
1997, IASC board launched Standing Interpretations Committee (SIC) as a direction if
there were some implementation questions about IAS (Alfredson et al, 2007, p. 8).
Although
IASC
has been productive by developing 41 standards, they also
have
sustained some defects such as:
•
Weak relationships with the original standard (national standard)
•
Lack of resources
•
Difficult
to
convert
from
the
national
GAAP
into
IAS
after
25
years
of
trying
•
Short of publicity of the standard by regulators
•
Need to be sponsored globally
Has been aware with these problems, IASC began a comprehensive inspection of
its organization and procedures. The review was completed in 2000 and the results are:
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