IAS Compliance

IAS stands for  International  Accounting  Standards, and refers to the Accounting Standard that is used by many overseas countries and mandated by the EU for use in all EU Member nations. The IAS rules and policies are set forth primarily by the IASB (International Accounting Standards Board) and they define accepted accounting practices and dictate how financial statements should be prepared and presented under IFRS (International Financial Reporting Standard) rules.

Our developers and designers spent numerous hours analyzing, discussing, and reviewing the IAS policies as set forth in the Wiley IAS book and work to ensure that the Integral Accounting Enterprise System meets both the IAS and the IFRS standards for financial accounting. The IAS Book can be purchased from Amazon.

Like US GAAP, The basic point of IAS compliancy in accounting software is to implement the proper accounting procedures into the software following the guidelines established by the conceptual framework and to have correct financial reporting. The IAS conceptual framework and their other basic rules are very similar to their US GAAP counterparts.

Also, like US GAAP, the ISA act as guidelines only, and they need to be interpreted and applied to the specific situation and type of company for which the accounting is occurring. Therefore, a thorough understanding of the IAS Conceptual Framework is helpful and recommended.

The Conceptual Framework is the foundation for the standards set forth in accounting and from which IAS is written. The Conceptual Framework explains and addresses the concepts of financial accounting such as why orders don't post to the GL, or why invoices can't be edited under IAS. It also sets forth the basic principles as to the way transactions are recorded, when to record income and expenses, etc. Understanding the conceptual framework will help you understand IAS better and ensure that when you customize and modify the software, it remains IAS compliant. The Wiley IAS Book will help you grasp these issues. 

Like US GAAP, There is no clear-cut checklist that details IAS compliancy. In the back of the IAS book, there is a Disclosure Checklist that sums up the policies and procedures for a company following IAS. The checklist is rather large, and complex, covering concepts of accounting on a reporting and procedural level, rather then specific to accounting software. 

It is a good basis though, since it does detail certain things that should exist and occur (such as requirements that need to be on the financial statements) in an accounting system and is something that should be kept in mind when customizing Integral Accounting Enterprise.