Who is responsible for creating accounting standards for international companies?

The International Accounting Standards Board (IASB) is responsible for creating accounting standards for international companies. The IASB develops and maintains the International Financial Reporting Standards (IFRS), which are designed to provide a globally accepted set of accounting standards that enhance the comparability and transparency of financial statements across different countries.

This role is crucial as businesses increasingly operate in a global marketplace, requiring consistent financial reporting standards to make comparisons easier for investors and stakeholders. By establishing IFRS, the IASB aims to promote high-quality, understandable, and enforceable standards that contribute to the efficiency and transparency of international financial markets.

Other organizations mentioned, like the Financial Accounting Standards Board (FASB), primarily focus on the accounting standards in the United States. The Securities and Exchange Commission (SEC) is responsible for enforcing securities laws and regulations but does not create accounting standards. Similarly, the American Institute of Certified Public Accountants (AICPA) is a professional organization that supports CPAs and develops guidelines and standards but does not set international accounting standards. Therefore, the IASB's role is essential for ensuring consistent global financial reporting.