The IASC and Its Comparability Project: Prerequisites for Success

In 1989, the International Accounting Standards Committee (IASC) released Exposure Draft 32 "Comparability of Financial Statements," proposing an improved set of international standards. Three major obstacles must be overcome for the IASC's Comparability Project to be effective: 1. Member countries must be willing to cooperate with the IASC. 2. Regional efforts at harmonization must be restrained or otherwise subordinated to the IASC's endeavors. 3. The IASC must vigorously pursue its aims and must be sufficiently funded to enable it to achieve them. In its updated 5-year plan, the IASC Board has pledged to revise existing international accounting standards to ensure that they are sufficiently detailed and complete and contain adequate disclosure requirements to meet the needs of capital markets and the international business community. The IASC must obtain the commitment of standard setters and regulators in the UK, the US, and Japan for comparability to succeed.