The timing of the series of books on the subject could not have been better, as international accounting standards are gaining greater importance, particularly owing to the historic pact with the International Organisation of Securities Commissioners (IOSCO), as a result of which, IASC was required to formulate a core set of accounting standards essential for endorsement by IOSCO of IAS for cross-border listing. To get endorsed by IOSCO, IASC had to deviate and provide more detailed guidance in the IAS for the "core set of standards", as IOSCO is heavily influenced by the US standard setter, the Financial Accounting Standard Board (FASB), which has a cook-book approach. IOSCO has already endorsed IAS-7 (cash-flow statements), and has indicated to IASC that 14 of the existing standards do not require modifications. Another boost in the arm came when the EU gave up its insistence to formulate its own accounting standards. As the authors point out, what needs to be appreciated is that notwithstandingthe limited resources (IASC's budget is less than 1/10 th of FASB) and the logistic nightmare of conducting meetings throughout the world, IASC has a membership of 120 accountancy bodies in 89 countries, and has been able to achieve a lot. Even China which became the member of International Federation of Accountants (IFAC) last year wishes to adapt IAS and compliance with IASC serves the purpose of listing on the London Stock Exchange.

The book is a commentary on IAS in the true sense of the word. The explanation and analysis is not only detailed and simple to understand but critical also. For example, the commentary on cash flow statement states that the authors believe that the term "changes in operating assets and liabilities" is preferable to the term used "working capital changes" since the emphasis has clearly shifted from working capital changes, and the related concept of funds flow to cash flows. Certain specialised situations which are fairly common in long-term construction contracts are notdealt with by IAS. The same is the case with accounting for various components of shareholders equity. IAS 21 does not address hedge accounting for foreign currency items other than classification of exchange differences arising on a foreign currency liability accounted for as a hedge of a net investment in a foreign entity. In such cases, treatment under US GAAP has been discussed in detail with examples. The chapter on accounting for leases also deals with issues not dealt with by IAS but for which guidance is provided in US GAAP. At the end, the book has a disclosure checklist index.

Accountants give different interpretations of the same events and transactions. An example is Norsk Hydro of Norway whose home profit (in 1992) of NKR 167 million when recast in USA shot up to NKR 1763. The sheer size of preparation costs to comply with listing requirements of overseas exchange is another reason for uniform standards.

As regards the Indian situation, it was best summed up by Ratan N Karanjia, CharteredAccountant at the Western India Regional Conference. He pointed out that we have a situation where Companies Act does not require a cash flow statement, the Accounting standard is recommendatory but the statement has to be provided by all listed companies. Another example is of leasing industry which has gone through boom to bust period and yet we do not have correct presentation of financial leases in the books of either party. Standards are still awaited. One fervently hopes that this drama is not repeated with other IOSCO-approved standards.