The AISCO was disbanded just before the next international congress in 1977. Then the International Federation of Accountant (IFAC) was formed, operating from New York City. Its objective was the development and enhancement of a co-ordinated worldwide accounting profession with harmonised standards.
Although the IFAC contributes 10% of the annual IASC budget, and IFAC council nominates as many as 13 members of the IASC Board, the IASC has full and complete autonomy in the setting and issuing of international accounting standards, as agreed between them and confirmed by the mutual .
commitment into which they have entered. Nevertheless, they have been calls .
for the two to be more closely linked and even merged. A recent review commissioned by the 8 countries, which provide the bulk of IFAC/IASC funding into the IFAC/IASC organisational arrangement, accepted the status while urging IFAC & IASC to seek the long-term objective of becoming one bodies.
IASC objectives (IASC constitution).
To formulate and publish in the public interest accounting standards to be observed in the presentation of financial statements and to promote their worldwide acceptance and observance.
To work generally for the improvement and harmonization of regulations, accounting standards and procedures relating to the presentation of financial statement.
The need for international standards?.
The context of accounting in different countries is very different and causes transnational differences in the measurement of profit and net assets. (M.Jone 2002) this is due to three sources of differences between accounting system (C.Roberts; P.Weetman; P.Gordon 2002). The first reason why companies from different countries use different accounting methods or report different information is because the legal framework, in other words rules and .
regulations. For instance in Germany there are no legislation on how to account for either leases or financial instruments but these standards exist for both issues in UK.