**Establishment of the Accounting Standards Board**

The Accounting Standards Board (ASB) is a body responsible for developing and issuing accounting standards in a country. It plays a crucial role in ensuring consistency, transparency, and comparability in financial reporting. The establishment of the Accounting Standards Board varies from country to country, as each jurisdiction may have its own regulatory framework for accounting standards.

**International Accounting Standards Board (IASB)**

At the international level, the International Accounting Standards Board (IASB) was established in 2001. The IASB is an independent standard-setting body that develops and promotes the use of International Financial Reporting Standards (IFRS). These standards are designed to be globally applicable, providing a common language for financial reporting across different countries. The IASB works in collaboration with national standard-setting bodies to achieve convergence in accounting standards worldwide.

**National Accounting Standards Board**

In many countries, a national Accounting Standards Board is established to develop accounting standards that are applicable within the country's jurisdiction. These boards are typically independent bodies, consisting of accounting professionals, regulators, and other relevant stakeholders. The establishment of national Accounting Standards Boards varies across different countries, depending on their legal and regulatory frameworks.

**Role and Functions of Accounting Standards Boards**

The primary role of the Accounting Standards Board is to develop and issue accounting standards that govern the preparation and presentation of financial statements. These standards provide guidelines on various aspects of financial reporting, including recognition, measurement, presentation, and disclosure of financial information. The main functions of the Accounting Standards Board include:

1. Developing accounting standards: The board develops and updates accounting standards to ensure they are relevant, reliable, and consistent with international best practices.

2. Setting ethical standards: Accounting Standards Boards also establish ethical standards that govern the behavior and conduct of accounting professionals, such as auditors and accountants.

3. Promoting transparency and comparability: By establishing uniform accounting standards, the board ensures that financial information is presented in a transparent and comparable manner, allowing users to make informed decisions.

4. Monitoring and enforcement: Accounting Standards Boards monitor compliance with accounting standards and may enforce penalties or disciplinary actions in case of non-compliance.

**Conclusion**

The establishment of accounting standards boards is essential for maintaining the integrity of financial reporting and ensuring consistency in accounting practices. These boards play a vital role in promoting transparency, comparability, and accountability in financial statements. Through their standard-setting activities, accounting standards boards contribute to the stability and reliability of the global financial system.

On 21st April 1977, the Institute of Chartered Accountants of India as the premier accounting body in our country, set up “Accounting Standard Board” (ASB) to harmorize the diverse accounting policies and practice prevalent in our country.