4. Evolution of International Accounting Standards Evolution of International Accounting Standards Drag the box to the correct position on the timeline. Predecessor organization. Responsible for the formulation of new international financial reporting standards. These two bodies agreed to try to align standards suggesting that differences might eventually disappear. The EU has mandated harmonization of accounting standards and 7,000 publicly traded companies were to be in accordance with IASB standards. The U.S. Securities and Exchange Commission is considering allowing firms to use IASB standards instead of GAAP (generally accepted accounting principles). These countries have adopted the IASB standards or permit firms to use them