Evolution of Accounting Standards, Institutions, People, Chronology

1. Journey from
Accounting Standards to IFRS:
Institutions People and Chronology of Achievements
Acknowledgement to
Stephen A. Zeff and Natalia Meylink
A N SHANKAR
Sikkim University Gangtok

2. GAAP Generally Acceptable Accounting Principles
Source : Hendricksen (1992)
Assumptions about
the World
Business Entity
Going Concern
Monetary Unit
Accounting
Period
Operating
Conventions
Historical Cost
Realisation
Matching
Duality
Quality
Considerations
Objectivity
Prudence
Consistency
Materiality
Applied to Statement of:
Financial Position,
Comprehensive Revenue,
Changes in Equity
and Cashflows

3. Journey International Accounting Standards
V. I. Tkach and M. V. Tkach (1991)
Journey International Accounting Standards
V. I. Tkach and M. V. Tkach (1991)
Until 1800 • Trade Stage
Until 1900 • Entrepreneurial Stage
Until 1950 • Organizational stage
1950-75 • Optimization Stage
Since 1975 • Strategic stage

4. Y. A. Mizikovski and T. Y. Druzhilovska (2006) Stages of IAS Development
Y. A. Mizikovski and T. Y. Druzhilovska (2006) Stages of IAS Development
Old Age
Old Age
Medivial Age
Medivial Age
XV–XVIII century
XV–XVIII century
XIX century
XIX century
First half of XX century
First half of XX century
Second half of XX century

5. Continued : Institutional Approach for validation
1926 Amsterdam : Congress ; 327 participants were present from 15 countries ; To share
Knowledge, Experiences , Methods, Universal treatments, Translation of Procedures in
English , French and German was done. Internationalisation was the agenda . Proposal for
Nobel Prize for Advances in Accounting Literature was made.(Ahmad, 1975)
1929 : STOCK MARKET CRASH : financial crisis in USA that led to creation of
nationally recognized standards of accounting and reporting which were adopted by
corporations whose stocks were traded on exchanges (Shturmina 2010)
1904 the first International Congress of Accountants took place in St. Louis, Missouri
(USA) significant event. ( Dennis, 2004 )
Consolidation of accounting
profession
Growth of world economy
Development of Auditing
firms
Establishment of Standards
for Calculating Corporate
Profits
Around 19th Century and beginning of 20th Century
Institute of
Accountants in
Edinburgh and
Glasgow (1853)
Society of
Accountants
in Aberdeen
(1867)
Manchester
Institute of
Accountants
(1887)
Scottish
Institute of
Accountants
(1880)
American
Association of
Public
Accountants
(1887 )
Canadian
Institute of
Chartered
Accountants
(1902)
London
Association
of
Accountants
(1904)

6. WW-II (1950)Creation of legal framework; Institutional and Legal Framework,
Professional Accounting Associations; redefinition of role of Accounting (Butynets, 2002)
WW-II (1950)Creation of legal framework; Institutional and Legal Framework,
Professional Accounting Associations; redefinition of role of Accounting (Butynets, 2002)
European Coal and Steel Community (ECSC) was created, in 1957 European
Economic Community (EEC) and European Atomic Entergy community are established
(Euratom), and in 1960 European Free Trade Association is formed
European Coal and Steel Community (ECSC) was created, in 1957 European
Economic Community (EEC) and European Atomic Entergy community are established
(Euratom), and in 1960 European Free Trade Association is formed
1960s Viewed large scale mergers across the European and American corporations and the
term "Multi National Corporation" was first time used in Business Week in April 1963.
(Zeff 2012)
1960s Viewed large scale mergers across the European and American corporations and the
term "Multi National Corporation" was first time used in Business Week in April 1963.
(Zeff 2012)
1963 : 8 th International Congress of accountants took place in New York. AICPA ;
Global Economy and Accounting Stressed on Evolution of Internationally acceptable
Accounting Standards. First Publication of survey of Accounting practices across 25
countries "Professional Accounting in 25 Countries "(1964) first attempt .
1963 : 8 th International Congress of accountants took place in New York. AICPA ;
Global Economy and Accounting Stressed on Evolution of Internationally acceptable
Accounting Standards. First Publication of survey of Accounting practices across 25
countries "Professional Accounting in 25 Countries "(1964) first attempt .
1962 AICPA constituted a committee on international relations whose aim was to create
programs for improving international cooperation between accountants of different
countries and fostering exchange of information and ideas.
1962 AICPA constituted a committee on international relations whose aim was to create
programs for improving international cooperation between accountants of different
countries and fostering exchange of information and ideas.

7. 1966-77
1966-77
• 1966 Initiative by Henry Benson, Sr partner, British accounting firm Cooper
Brothers & Co. (later Cooper and Lybrand and currently Price
Waterhouse Coopers) And President ICAEW of Institute of Chartered
Accountants of England and Wales, along with AICPA United States and CICA
Canada. Constituted AISG. ; Study Accounting practices across the countries. 20
Guidelines were issued
• 1966 Initiative by Henry Benson, Sr partner, British accounting firm Cooper
Brothers & Co. (later Cooper and Lybrand and currently Price
Waterhouse Coopers) And President ICAEW of Institute of Chartered
Accountants of England and Wales, along with AICPA United States and CICA
Canada. Constituted AISG. ; Study Accounting practices across the countries. 20
Guidelines were issued
1967
1967
• Gerhard G. Mueller , Published the first textbook on international accounting
by. First Professor to teach International Accounting Standards at Graduate School
• Gerhard G. Mueller , Published the first textbook on international accounting
by. First Professor to teach International Accounting Standards at Graduate School
1972
1972
• 10 th International Congress of Accountants in Sidney, representatives of AISG
proposed International Accounting Standards Committee (IASC).
• The committee was formed in London in 1973 with participants from Australia,
Canada, France, Germany, Japan, Mexico, Netherlands, Great Britain, Ireland
and United States.
• IASC is independent non-profit, non-government organization, Chaired by
Henry Benson created by professional associations directly involved in
accounting.
• 10 th International Congress of Accountants in Sidney, representatives of AISG
proposed International Accounting Standards Committee (IASC).
• The committee was formed in London in 1973 with participants from Australia,
Canada, France, Germany, Japan, Mexico, Netherlands, Great Britain, Ireland
and United States.
• IASC is independent non-profit, non-government organization, Chaired by
Henry Benson created by professional associations directly involved in
accounting.
1973
1973
• Belgium, India, Israel, New Zealand, Pakistan and Zimbabwe joined association
as associate members.
• Belgium, India, Israel, New Zealand, Pakistan and Zimbabwe joined association
as associate members.

8. • First IASC standard on Transparency
• First IASC standard on Transparency
1975
1975
• Munich 7th October, 11th congress IASC.
• Formation /Founding of International Federation of
Accountants IFA
• IASC for evolving standards , IFAC for identification of
Problems
• Munich 7th October, 11th congress IASC.
• Formation /Founding of International Federation of
Accountants IFA
• IASC for evolving standards , IFAC for identification of
Problems
1977
1977
• IASC Consultative Group constituted to
involve; World Bank , UNO , OECD.
• 1987 Organisatinon of International
securities commission joined in 1987.
• 1990 Council of FASB (USA)
• IASC Consultative Group constituted to
involve; World Bank , UNO , OECD.
• 1987 Organisatinon of International
securities commission joined in 1987.
• 1990 Council of FASB (USA)
1981-
1990
1981-
1990

9. 1990
•IAS were approved by the G7 countries ;(USA, Japan, Germany, Great Britain, France,
Italy and Canada), Basel committee on Banking supervision and Bank for International
Settlements
2000
•Organisation of International Securities Commission (OISC)recommended use of IAS by
TNCs in Financial markets.
•Developing countries used it as basis of evolving their GAAP
•Developed countries recommended the act of OISC
2000
•143 professional organisations joined IASC and IFAC from 104 countries.
•Aggregating to 173 organisations from 129 countries
•IASC though committed but lacked support on the grounds of professionalism and
legitimacy., as perceived by member nations. Name change in 2000 to IASB
2001
•IASB though committed but lacked support on the grounds of professionalism and
legitimacy., as perceived by member nations. Name change in 2000 to IASB . Focused
aim is to converge the Accounting practices
•Standards issued by IASB are named as IFRS

10. 2002 EU accepted and
implemented IFRS w.e.f 2005
followed by FRC Australia.
2002 meeting of FASB and
IASB at Connecticut USA
pledging future cooperation
to evolve GAAP and IFRS .

11. Persons associated with institutions
Lord Henry Alexander Benson (2nd August1909 to 5th March
1995) AISG, ICAEW, IASC, PWC
Source : https://aaahq.org/Accounting-Hall-of-
Fame/members/1984/Lord-Henry-Alexander-Benson
Lord Henry Alexander Benson (2nd August1909 to 5th March
1995) AISG, ICAEW, IASC, PWC
Source : https://aaahq.org/Accounting-Hall-of-
Fame/members/1984/Lord-Henry-Alexander-Benson
William J Casey 1971 Chairman SEC
William J Casey 1971 Chairman SEC
Ray Garett Jr , Chairman SEC 1973
Ray Garett Jr , Chairman SEC 1973
Marshall S. Armstrong,Chairman FASB 1973
Marshall S. Armstrong,Chairman FASB 1973

12. References
Natalia Meylink (2013) History of Origins and Developmentof System of International Accounting
, Journal of European Economy ,2(4),487-497.
https://www.researchgate.net/publication/272418096_History_of_origins_and_development_of_system_of_international_accounting?enrichId=rgreq-
12edb94e6d295679710856cef4cd0692-
XXX&enrichSource=Y292ZXJQYWdlOzI3MjQxODA5NjtBUzo1OTgyNjc1NzQzNjIxMTNAMTUxOTY0OTUxMzU5Nw%3D%3D&el=1_x_
2&_esc=publicationCoverPdf
Tkach V. I. International system of accounting and recording / V. I. Тkach, М. V. Тkach. – М. : Financy i
statistika, 1991. – 160 p.
Myzykovskyy Е. А. International standards of financial statements and accounting in Russia: study guide. 2-
nd edition, revised and complemented / Е. А. Myzykoskyy, Т. Yu. Druzhylovskaya – М. : Publishing house ,
Buhhalteskiy otchet, 2006. – 328 p.
Dennis A.(2004) Taking Account of History: How much and how little have changed in a century, Journal of
Accountancy. 197(5).