Evolution of accounting standards

The evolution of accounting standards can be traced back to the early 20th century, when the need for a consistent framework for financial reporting arose. Initially, different countries and regions had their own accounting standards and practices, leading to inconsistencies in financial reporting. In response, organizations such as the International Accounting Standards Committee (IASC) and the Financial Accounting Standards Board (FASB) were established to create a set of universally accepted accounting standards. Over time, these standards evolved and became more complex as new accounting issues emerged. Today, companies are required to comply with a set of accounting standards that govern how they report their financial performance. This evolution has greatly improved the transparency and comparability of financial reporting across borders.

This mind map was published on 7 May 2023 and has been viewed 174 times.