The IAS are the accounting standards published by the International Accounting Standards Committee (an international association of professional organizations for auditing professions), which are geared towards the information needs of equity investors.
Corporate reporting in accordance with international accounting standards is used by many companies that are more focused on the capital market, alongside classic reporting in accordance with HGB or FER. In addition to the American standards (US-GAAP), the International Accounting Standards published by the International Accounting Standards Committee should be mentioned in particular.
Based on the assumption that an accrual basis is to be carried out for a continuing business activity (going concern), data should be presented to various interested parties, but primarily to investors, that convey a picture of the business activity, which is based on the principle of fair presentation corresponds. The specification takes place in stages, with qualitative characteristics (understandability, relevance, reliability) and restrictive constraints initially being formulated as part of a general framework (framework for the preparation and presentation of financial statements). These criteria were then implemented in 40 standards.
The reasons for reporting in accordance with IAS are to make it easier for people to be admitted to the stock exchange on supraregional stock exchanges, to simplify the preparation of consolidated financial statements for international subsidiaries and to create a common language for reporting and controlling international groups. In addition, the consolidated financial statements according to IAS are free of distortions that could relate to the distribution or taxes. IAS is therefore well suited for communication.
Empirical studies show that the use of international accounting standards compared to the publicity according to HGB has a positive effect on the accuracy of the forecasts of financial analysts.