International Accounting Standards Board has done well in establishing itself as a prudent accounting standard. Its efforts and achievements are worth mentioning. IASB developed 33 accounting standards. Its co-operation with national standard setters; it has national standard setters in its board and also calls for participation from interested groups and various individuals and organizations such as financial analysts, stock exchanges and financial instrument users. The ideas were simple, IASB as a private body cannot enforce its standards on different nations, therefore it needs the support of national standard setters and for its implementation and more so, if these individuals and organizations are in process of a standard building they would probably not oppose its implementation.
This could be considered a smart move by the ISAB. Recommendation by IOSCO to its member states to allow its companies to use IAS for international offerings was a major milestone for IASB because US Security Exchange Commission is a key member of IOSCO, this endorsement by IOSCO would mean acceptance of IASB by the United States. It also paved the future path for IASB to be accepted world wide.
European Union’ s anti-US strategy gave IASB a much-required boost, as it made it compulsory for its member states companies to present their consolidated financial statements in accordance with IASB. Last but not least, co-operation between FASB and IASB, in order to design a single global accounting framework was another cornerstone achievement for IASB. But it was actually a compromise on the American part, because IASB was now accepted by EU, the second biggest economic powerhouse forced its companies to prepare statements as per the IASB format would gives IFRS a strong backing for global acceptance and more domestically, failure of Enrons and Worldcom's of the US-led to less belief in the US GAAP and strong backing by EU led to this co-operation between the two.
Alexander, D., Britton, A. & Jorissen, A. International Financial Reporting and Analysis. Cengage Learning EMEA, 2007.
Thorell, P. & Whittington, G., The harmonization of accounting within the EU Problems, perspectives and strategies. The European Accounting Review, 1994.