International accounting roundup.

INTERNATIONAL ACCOUNTING ROUNDUP

The London-based International Accounting Standards Committee has announced steps taken toward globalization of international standards. Here's a brief overview of recent developments:

New ED. IASC has issued Exposure Draft no. 35, Financial Reporting of Interests in Joint Ventures, which deals with accounting for such interests and the reporting of joint venture assets, liabilities, income and expenses. Comments should be received by May 31, 1990, and sent to the IASC at 41 Kingsway, London WC2B 6YU, United Kingdom.

World Bank. For the first time, the auditors of the World Bank (formally, the International Bank for Reconstruction and Development) have reported the bank's financial statements are being presented in conformity with international accounting standards (IASs) as well as with U.S. generally accepted accounting principles. The bank has financial operations in 151 member countries.

Japan. The International Committee of the Kinki chapter of the Japanese Institute of CPAs has published a research report containing model formats of financial statements of Japanese companies reporting in English. It takes IASs into account and provides a frame of reference for the increasing number of Japanese companies that prepare Japanese GAAP financial statements in English for overseas readers.

Poland. IASC Secretary-General David Cairns discussed the development of accounting guidelines for joint ventures in Poland with Hubert A. Janiszewski, vice-president of the Polish Foreign Investment Agency. Currently, all Polish state enterprises use accounting rules laid down by the ministry of finance. However, the application of these rules to joint ventures with Western enterprises (which are being encouraged by the Polish government) is causing problems, and consideration is being given to developing new guidelines based on IASs. Janiszewski and Cairns also discussed establishing a task force to develop such guidelines.

Zimbabwe. The Institute of Chartered Accountants of Zimbabwe has published a checklist designed to assist in verifying compliance with IASs nos. 1 through 20. It links the IAS requirements to those of the Zimbabwe Companies Act. According to the IASC, Zimbabwe is one of a number of developing countries that use IASs as national accounting requirements.

Kuwait. The Kuwait Permanent Standards Committee has recommended all business entities operating in Kuwait present their financial statements in conformity with IASs. It has circulated its decision, with a list of the standards, to all accounting firms and has asked firms to observe those standards that do not conflict with national law.