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Egypt’s Accounting Standards (EAS) against IFRS: The Reason behind Compliance and The Main Differences.
Ahmed Mostafa Eliwa
German University in Cairo
Supervised By:
Prof: Dr. Ehab K. A. Mohamed
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Chapter 1: IFRS Historical Background
1.1 Introduction
The purpose of this chapter is to gather information about the history of the international financial and reporting standards (IFRS), the committee that issued them, and what the reasons behind issuing such standards are to be agreed and implemented across the world.
In the following sections we will know more about the International Accounting Standards Committee (IASC) “The IFRS Issuer” foundation and launching. Then we will talk about the IFRS and the IASC development during the period of 1973 - 2000. How the IASC started to issue their international accounting standards and to what extent they were agreed and implemented across the world. And also what are the difficulties that faced them to issue accepted international accounting standards during this period.
Finally, in the last section, the factors that forced the IASC to be restructured to IASB “International Accounting Standards Board”. Moreover, and after correspondence and deliberations, the Securities Exchange Commission (SEC) endorsement on the IFRS.
1.2 IASC Foundation and Launching:
Following World War II, each country had its own Generally Accepted Accounting Principles (GAAP, the U.S. designation), or proper accounting practice. Even among the GAAPs in countries with active equity capital markets on which listed companies depended heavily for finance—the United States, Canada, the United Kingdom, Australia, and New Zealand—there were a lot of differences.
In 1947, France established the Plan “comptable ge´ne´ral”, or National Accounting Plan, a detailed, codified regulation of company accounting, which France then exported to Belgium and