International Financial Reporting - Essay Example

Comments (1) Cite this document
This paper “International Financial Reporting” will analyze the IAS in an exhaustive manner and will offer further insight into what is the true and fair view, the meaning of fair presentation and the discussion what constitute a faithful presentation of financial reports…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.5% of users find it useful
International Financial Reporting
Read TextPreview

Extract of sample
"International Financial Reporting"

Download file to see previous pages The notion “true and fair view” has originated from British accounting. There has numerous definition of “true and fair view” as there is no exact definition available of the term either by the standard setters or in law or even through court verdicts. The notion “true and fair view” has never been defined officially and as the principle is dynamic, it is neither desirable nor possible to give an exact definition for the concept. (Evans 2003:312)
However , in a French case that was decided in 1994 did mention about the phrase that termed it as a trust on adhering with accounting regulations, which does not automatically guarantee a true and fair view. IASB demands that financial reports should offer a true and fair view. US accounting regulation's demand that accounts should be presented as per generally accepted accounting principles. (Walton & Aerts 2006:69).
As per IFRS, the general intention of financial reports is to offer a just and fair presentation of the modification or changes in the financial performance and position of a business organisation or a company. The Conceptual Framework of IASB advocates that fair presentation could also be mentioned as offering a “true and fair view”. However, IAS 1.15 standard specifically states that publication of financial reports, which is based on the chief hypothesis that the application of IFRS with further or additional dissemination, if needed, is supposed to present financial reports mirroring a “fair presentation.” ...
needed, is supposed to present financial reports mirroring a “fair presentation.” Further, IAS 1 demands in the same tenor an unreserved and explicit of adherence with IFRS to be comprised in the notes to the accounts. (Walton & Aerts 2006:69). As per Walton, the three classes of significance of “true and fair view” are a residual, legal clause; a generally accepted accounting concept and an independent concept. Further, under the view of GAAP, the proposition for European harmonisation is that before the fourth directive, each member nation had its own “true and fair view.” Thus, to establish a synchronized “true and fair view” would need a common meaning or GAAP; and that it should be noted that actual words are just signifiers only. As regards to “true and fair view”, Walton’s general view is that it is having both a probable large political meaning and an operational meaning, when accountants are enhancing or defending their professional position. The notion “true and fair view” has been formulated in the UK footed on the following three fundamentals namely an independent concept; a legal residual clause and generally accepted accounting principles. (Evans 2003). A” true and fair view “ is needed to accomplish “ the goal of financial reports “ which is to offer info about the status of the financial standing , financial performance and any modification or change in the financial status of a business or a company that is advantageous to a broader choice of stakeholders or users in arriving at financial decisions. (ISAB: IAS Framework 2001). In financial reporting, the “true and fair view” can be mirrored by four qualitative uniqueness namely undesirability; relevance; comparability and reliability. Financial reporting is the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“International Financial Reporting Essay Example | Topics and Well Written Essays - 5500 words”, n.d.)
Retrieved de
(International Financial Reporting Essay Example | Topics and Well Written Essays - 5500 Words)
“International Financial Reporting Essay Example | Topics and Well Written Essays - 5500 Words”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
isabellwalker added comment 1 month ago
Student rated this paper as
The topic of "International Financial Reporting " is quite often seen among the tasks in college. Still, this sample opens a fresh perspective of seeing the issue. I’ll use the style for my own example.
International Financial Reporting Standards
...?Introduction International Financial Reporting Standards were implemented after the overall complexity of business organizations as well as the nature of accounting relatively changed. International Financial Reporting Standards (IFRS), therefore, have been considered as an effort by the world accounting governance bodies to ensure that uniform reporting standards are adapted across the whole world. Due to the globalization process, organizations have become truly global in nature with their presence in different countries of the world. However, due to different accounting standards prevailing in each country,...
8 Pages(2000 words)Dissertation
International Financial Reporting
...statements; the shareholders, institutional and small investors were given and shown such financial statements which were not totally representing a ‘true and fair view’; the financial statements either to a minimum extent or to a considerable extent were filled with the help of window dressing and creative accounting. Unfortunately, the role of International Financial Reporting Standards, also known as International Accounting Standards Board, did not come for any help to rescue the international world economy from the threat and force of the 2008 financial crisis. The main reason for that, the...
12 Pages(3000 words)Essay
International financial reporting
...Faithful Presentation Information must represent faithfully the transactions it purports to represent in order to be reliable. There is a risk that this may not be the case, not due to bias, but due to the inherent difficulties in identifying the transactions or deciding on an appropriate method of measurement or presentation. Thus, it is advised that in the case where measurement of the financial effects of an item is uncertain, entities should not recognize such as an item, for example, an internally generated goodwill. 3.5 Comparability In terms of comparability, accounting information must be reported in a similar manner so that users are able to compare the entity’s annual...
11 Pages(2750 words)Essay
International Financial Reporting Standards
...?In the United s the prevailing accounting framework utilized by professionals in the field of accounting and finance is the U.S generally accepted accounting principles (GAAP). Despite its effectiveness in other parts of the world U.S. GAAP is not an accepted accounting framework. In the international community the fastest growing accounting framework that is being used in the business industry of different countries is the international financial reporting standards (IFRS). The international financial reporting standards were created by the International Accounting Standards Board (IASB). The IASB is...
4 Pages(1000 words)Assignment
International Financial Reporting
...Introduction International Accounting Standards (IAS) provides objective and detailed of accounting standards while developing financial statements. The aim is provide standardised, coherent, consistent, and useful information to various users of the financial information. To date, a total of 41 IAS have been released; however, 10 have been superseded by other IAS or IFRS (International Financial Reporting Standards); and 2 have been withdrawn by International Accounting Standards Board - IASB (IAS Plus, 2009). This paper provides a broad introductory review of the five standards from IAS; namely: IAS 16 - Property, Plant...
13 Pages(3250 words)Essay
International Financial Reporting Standards
...About U.S. Companies Switching To International Financial Reporting Standards (IFRS) Beginning In TABLE OF CONTENT: PAGES 1) Executive Summary 02 2) Introduction 02 3) Similarities and Differences 03 4) IAS-2 (Inventories) 03 5) IAS-11 (Construction & Contract) 04 6) IAS-16 (Property Plant & Equipment) 05 7) IAS-36 (Impairment Losses) 06 8) IAS-39 (Intangible Assets) 06 9) Diversification into IFRS from GAAP and its Impact 07 10) Conclusion 09 11) Bibliography 09 12)...
8 Pages(2000 words)Essay
...INTERNATIONAL FINANCIAL REPORTING Introduction The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), has ventured on a project to reconstruct the bases of financial accounting by retooling the Conceptual Framework. The Conceptual Framework is similar to a charter for financial reporting, rendering the basis for standards. Had there been no framework, accounting standards would adopt the easier solution for a particular issue. A solution which is coherent with an interconnected theory of accounting would never be the choice. The Conceptual Framework is a...
11 Pages(2750 words)Essay
.... In addition to adopting IFRS several relevant changes in the overall economic and institutional framework need to be implemented to achieve the enhanced quality financial reporting. Further, before implementing IFRS fully to all countries, an international consensus taking into account of the country specificities needs to be obtained regarding the treatment of various financial instruments and various accounting procedures .This is needed to implement IFRS without affecting the information provided by the financial statements of enterprises . Objectives of Financial Statements –A Critical Evaluation 1....
12 Pages(3000 words)Essay
International Financial Reporting
...Accounting Standards Part A The regulatory and conceptual framework of international accounting A conceptual framework of accounting is the theoretical principles, which strengthens both the development of new reporting practices and the evaluation of the existing ones. It underlies why we do, what we do and how we do it. The conceptual framework will determine what business information is to be reported, how it should be reported, how it should be measured and how the information should ultimately be communicated. The IASB-international Accounting standards Board issued a system for the arrangement and presentation of money related explanations. This...
11 Pages(2750 words)Essay
International Financial Reporting Standards
...International Financial Reporting Standards Task International Financial Reporting Standards (IFRS) IFRS is a set in international accounting standards developed by the IASB with the main goal of providing a global framework for public companies in the preparation, as well as the disclosure of their financial statements. Consequently, the financial reporting and disclosure standards provided by IFRS act as a guideline for the preparation, reporting, and analysis of financial statements provided by public companies. This is unlike this is unlike the other existing financial reporting frameworks which, on the contrary, set rules, and regulations with the key aim of governing the preparation, presentation, as well as the reporting... ...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic International Financial Reporting for FREE!
Contact Us