StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Formulation of Accounting Framework and Adoption of International Financial Reporting Standards - Essay Example

Cite this document
Summary
This essay "Formulation of Accounting Framework and Adoption of International Financial Reporting Standards" focuses on International Financial Reporting Standards, which is a renowned accounting framework, is being followed by a number of business entities operating in different parts of the world…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.6% of users find it useful
Formulation of Accounting Framework and Adoption of International Financial Reporting Standards
Read Text Preview

Extract of sample "Formulation of Accounting Framework and Adoption of International Financial Reporting Standards"

? The Choice between Formulation of Accounting Framework and Adoption of International Financial Reporting Standards: A Case of Developing Countries [Student’s Name] [Course Title] [Instructor’s Name] [Date] The Choice between Formulation of Accounting Framework and Adoption of International Financial Reporting Standards: A Case of Developing Countries Businesses and organizations have gained significant benefits with the increase in globalization all over the world. Among many benefits, one key advantage associated with globalization is that it has enabled business entities to adopt accounting frameworks which are internationally accepted and recognized. With the adoption of accounting standards and frameworks, businesses are able to reduce their costs relating to financial reporting, particularly those countries where generally acceptable accounting principles are either nonexistent or are not effective enough to be relied upon or adopted. The adoption of international accounting frameworks not only benefits business entities adopting them but also benefits the users of financial statements prepared by those entities. As for instance, International Financial Reporting Standards, which is a renowned accounting framework, is being followed by a number of business entities operating in different parts of the world. By way of following similar accounting frameworks such entities are able to report their operations on similar patterns and analysts, investors and other stakeholders are able to comprehend them easily (Adekoye, 2011). The wider impact of adoption of internationally recognized financial reporting framework is that users of financial statements are more confident and certain about efficiency, effectiveness and reliability of the financial reporting process (Ahmed, 2011). On the other hand, implementing locally developed accounting standards can have its own distinct benefits for developing countries. Whatever may be the case or choice of businesses operating in developing countries, the fact is that accounting is influenced by a number of factors which are prevalent all over the globe. The factors which determine the applicability and implementation of International Financial Reporting Standards include variations in culture, economic and taxation systems and other related variables (Nobes & Parker, 2004). Differences in Economic, Legislative and Taxation Systems Having regard to the potential benefits of adopting internationally recognized financial reporting frameworks, developing countries are bound to face certain challenges related to the differences in their economic, legislative and taxation systems (Nobes & Parker, 2004). This in turn implies that the adoption of International Financial Reporting Standards shall be based on logical and convincing grounds. The attraction and appeal in following IFRS, which are internationally acceptable, and ensure comparable and reliable financial reporting, has influenced the financial reporting choices of many in developing countries. However, the fact that whether the framework provided by IFRS is in line with the prevailing accounting and financial reporting systems of the countries and whether there are cushions available in the legal frameworks for adopting IFRS have lead to significant confusions regarding its implementation (Nobes & Parker, 2004). The Role of Cultural Differences in Adopting Accounting Frameworks Gray’s (1988) work of relating accounting values with the cultural differences is significant for resolving the case of adopting International Financial Reporting Standards by developing countries. In his work, Gray (1988) took into consideration the work of Hofsteded (1980) on different cultural dimensions. The main finding of the work of Gray (1988) is that culture has a significant influence in the accounting practices of business entities operating in a particular country or region. According to Gray (1988), the fact that there is a significant influence of culture on the accounting practices is based on the idea that the formation and progress of institutions and practices therein are largely dependent on the social values. In other words, it is the social setting in a society which leads to formation and working of institutions, such as academic, legislative, economic, political, governmental, businesses and other public institutions. Gray (1988) further notes that these systems or institutions continue to mould themselves in light of the cultural and social values of and then stagnate, which ultimately brings stability and coherence among all systems’ working. However, this stability is often influenced once the country or society opts for interacting with societies outside its sphere, such as going for trade with international community, inviting foreign businesses and so on. In his work on cultural dimensions in a society, Hofstede (1980) came up with four main cultural dimensions, which serve as the basis to distinguish between cultural settings of different societies, or even countries when applied to a larger canvas. Hofstede (1980) carried out his research work by considering a culturally diverse business entity which operated in different parts of the world. On the basis of cultural diversity analysis, Hofstede (1980) was able to identify four cultural dimensions as follows: Individualism and Collectivism The core area dealt with under this cultural dimension is the extent to which the people forming a society are dependent on each other. The dimension deals with the investigation of individuals’ dependence on each other. According to Hofstede (1980), those societies which are predominantly individualistic are those in which individuals are concerned about themselves only and those who are in some relation with them, such as families. On the other hand, in collectivist societies, individuals who are part of the society act and live in groups and represent each other at different stages. In such cases, loyalty of individuals for each other is the primary factor which binds individuals together. Power Distance The power dimension holds that no one in a particular society is equal to others, and this inequality among individuals is primary due to the cultural norms and traditions prevailing in the societies. The lack of equality among individuals in a society results in shift of power to a particular segment in the society and thus empowers that segment which exercises its authority over others (Hofstede, 1980). Masculinity and Femininity A society which has a higher score of masculinity reflects that it has a higher level of competition and individuals are in search of success and making efforts to overrun others in the society. On the other hand, where femininity has a higher score, it means that the society comprise of individuals who respect and care for others and the major focus is on quality of life. In other words, the success of a feministic society is determined by the quality of life of the overall society and its members. In short, masculinity refers to be ahead and better than everyone, whereas, femininity refers to doing things which are admirable (Hofstede, 1980). Uncertainty Avoidance Uncertainty Avoidance refers to a cultural dimension which considers how a particular society predicts and foresees future. The idea behind determining this consideration is to know that what stance is taken by the society as a whole to avoid uncertainty in future. In this regard, there are two options only, which are to exercise control over future events or to leave them on their own and face what happens in the future. This situation of deciding between the two choices leads to a state of confusion and different societies deal with such a confusing state in different manners. The determination of the degree to which individuals forming part of a society are influenced by future events or predictions is carried out by the scores determined for uncertainty avoidance (Hofstede, 1980). Gray (1988) made use of Hofstede’s (1980) cultural dimensions in relating it to the accounting practices. In his work, Gray (1988) states that the practices and values for accounting in a society or in a country are determined by the cultural dimensions, as have been identified by Hofstede (1980). This phenomenon, according to Gray (1988), then affects the accounting systems being followed by business entities in such societies. Based on the cultural dimensions identified by Hofstede (1980), Gray (1988) states that there are four main accounting dimensions, which are as follows: S. No. Accounting Dimensions Explanation 1 Professionalism / Statutory Control This accounting dimension deals with the comparison of professionalism, regulating one’s own self, and discipline with strict abidance with statutory and legal frameworks and requirements. 2 Uniformity / Flexibility This accounting dimension refers to the extent to which standardized accounting frameworks are complied with and the consistency with which they are complied with. 3 Conservatism / Optimism This dimension deals with the understanding of how accounting practices are considered by the practitioners, i.e. whether they follow a conservative approach or an optimistic one towards accounting practices. 4 Secrecy / Transparency This dimension deals with the extent to which information, which is accounting information, is disclosed or kept secret from general public. Source: (Borker, 2012) By way of comparing Hofstede’s (1980) cultural dimensions with the accounting dimensions, Gray (1988) hypothesized the following: Hypothesis 1: Where individualism is prevalent and uncertainty avoidance and power distance have low scores, it can be expected that there is higher professionalism in the society or country under consideration. Hypothesis 2: Where collectivism is prevalent and uncertainty avoidance and power distance have high scores, it can be expected that there is higher uniformity in the society or country under consideration. Hypothesis 3: Where collectivism and feminism are prevalent and uncertainty avoidance and power distance have high scores, it can be expected that there is higher level of conservatism in the society or country under consideration. Hypothesis 4: Where collectivism and feminism are prevalent and uncertainty avoidance and power distance have high scores, it can be expected that there is higher secrecy in the accounting practices in the society or country under consideration. These relationships identified between Hofstede’s (1980) cultural dimensions and Gray’s (1988) accounting dimensions, as shown by hypotheses above, can be summarized in the following manner: Individualism Power Distance Masculinity Uncertainty Avoidance Professionalism Positive & Strong Negative Unknown Negative & Strong Uniformity Negative & Strong Positive Unknown Positive & Strong Conservatism Negative Positive Negative Positive & Strong Secrecy Negative & Strong Positive & Strong Negative Positive & Strong Source: (Borker, 2012) As can be observed in the discussion presented above, Gray (1988) has related cultural dimensions of Hofstede (1980) with accounting dimensions. On the basis of consideration of the two sets of dimensions, cultural profile of a country can be formulated which is then used as a basis of determining whether the country has a suitable cultural setting to adopt internationally recognized accounting framework or not. Keeping in view the fact that the claim of Gray (1988) has significant implications as far as adoption of accounting standards by developing countries is concerned, there has been an enormous research conducted in the past for the purpose of testing the validity of Gray’s model. The first empirical testing of Gray’s (1988) propositions was carried out by Eddie (1990). Eddie (1990) in his research work carried out a comprehensive analysis of the four hypotheses presented by Gray (1988). In his study, he took into consideration accounting values of 13 countries from Asia Pacific region and related them with the four dimensions of culture identified by Hofstede (1980). The results of the study concluded that the association of cultural dimensions with accounting dimensions as presented by Gray (1988) hold its ground, but, on the other hand, the way in which Gray (1988) proposed to measure accounting values in his framework. On the other hand, Salter & Niswander (1995) made use of regression analysis to analyse the validity of Gray’s (1988) four hypotheses. In their analysis, Salter & Niswander (1995) considered Hofstede’s four cultural dimensions as independent variables in the analysis and considering the accounting information of corporate entities from 29 countries, they found that there is a significant relationship between Gray’s (1988) hypotheses with the cultural dimensions identified by Hofstede (1980). The detailed findings revealed that the model presented by Gray (1988) is able to successfully value the financial reporting practices, but it is unable to determine professional and statutory structures in a country on the basis of its cultural settings. Moreover, a significant and positive relationship was reported between uncertainty avoidance (Hofstede’s cultural dimension) and professionalism (Gray’s accounting dimension), which implied that where a country is ranked high in relation to uncertainty avoidance, there is a higher level of professionalism expected in such a country. On the other hand, the analysis revealed a positive and significant relationship between uniformity and uncertainty avoidance and a negative and significant relationship between uniformity and with masculinity. Lastly, the study also concluded a significant and positive relationship between secrecy and uncertainty avoidance and a significant and negative relationship between secrecy and individualism. Jaggi & Low (2000) criticized the validity of Hofstede’s (1980) cultural dimensions by stating that since Hofstede conducted his analysis on a single organization, i.e. IBM< therefore the validity and applicability of the cultural dimensions identified could be questioned. According to Jaggi & Low (2000), “culture has little or no influence on the disclosure levels once legal system is considered”. In order to test the validity of claims brought forward by Jaggi & Low (2000), Hope (2003) studied a sample of thirty nine countries and tested information gathered against the four hypotheses identified by Gray (1988). In his conclusion to the study, Hope (2003) stated that “it is too early to write off culture as an explanatory variable for annual report disclosure levels” (pp. 23). Advantages and Disadvantages of Adopting International Financial Reporting Standards or a Particular Framework: Review of Past Studies and Research Works Researchers in the past have reviewed the need to adopt a globally recognized accounting standards framework which is internationally acceptable and is considered reliable for the purpose of financial reporting of business entities’ operations. In this regard, researchers have identified various benefits and drawbacks for business entities. In their study, Cai & Wong (2010) have noted that if business entities adopt a single particular set of financial accounting standards which are globally recognized, such an action would extinguish the requirement for financial statements’ restatement for the purpose of comparing them with others. In addition to this, it has also been noted by the researchers that adopting single set of accounting standards also ensures diversity among different parts of the world, which in turn ensures exchange of capital resources among such countries and thus they are well connected and integrated with other parts of the world. On the other hand, Esptein (2009) has also counted advantages of adopting a single set of financial accounting standards in his work. According to Esptein (2009), by way of harmonizing financial reporting practices all over the world through adoption of a globally acceptable financial reporting framework, the issues of market liquidity, costs for carrying out transactions by investors or business entities operating in different parts of world can be addressed. Similarly, Esptein (2009) also highlights the importance of this adoption by stating that it will result in lowering the cost of capital resources and promote formation of capital in a more efficient manner, which will be on a global scale. Irvine & Lucas (2006) have noted that research works carried out in relation to effects of adopting International Financial Reporting Standards at national level have indicated that those countries which have done so, were able to show significant rise in the foreign direct investments from different parts of the world. Referring back to the work of Cai & Wong (2010), it can be noted that the researchers studied capital markets at international level. Their study revealed that those countries which opted to adopt International Financial Reporting Standards as their financial reporting frameworks, were able to show a significantly higher integration between their and international capital markets. The study showed that this significant growth was considerably higher than the period during which adoption of International Financial Reporting Standards did not take place. Moreover, Chai et al. (2010) studied the financial reporting performance of the publicly listed corporate entities operating in fifteen member countries of the EU (European Union). The study considered the information pertaining to selected companies before and after the adoption of International Financial Reporting Standards. In their findings, Chai et al. (2010) concluded that most of the financial reporting quality indicators showed remarkable improvements since the selected companies adopted IFRSs. In their study, Meeks & Swann (2009) considered the impact of adopting International Financial Reporting Standards at organizational level. The study concluded that those business concerns which adopted IFRS were able to show improvement in their respective accounting practices, as compared to the period when no such adoption was made. On the other hand, Barth et al. (2008) carried out a research involving financial information of business entities which included corporate entities from twenty one countries. The study concluded that those business organizations which opted for the adoption of International Financial Reporting Standards were able to report significant improvement in their financial reporting procedures and practices. As far as the impact of adoption of International Financial Reporting Standards on the financial performance of businesses is concerned, Latridis (2010) carried out his research work while considering the financial information of public listed companied on the LSE (London Stock Exchange). The study concluded that profitability of the selected companies and various growth indicators showed significant improvements after the adoption of International Financial Reporting Standards. Adoption of International Financial Reporting Standards: Implications for Developing Countries As far as the impact of adopting International Financial Reporting Standards in developing countries is concerned, there is a considerable work carried out by researchers in the past. Chamisa (2000) conducted a research work to explore the significance and usefulness of the adoption of International Financial Reporting Standards in the context of developing countries of the world. The researcher made use of Zimbabwe as a case study and analyzed how adoption of International Financial Reporting Standards influenced financial reporting practices of public listed business entities in the country. The findings of the study revealed that adoption of internationally recognized financial reporting standards, such as International Financial Reporting Standards, contributes significantly towards the efficiency and performance of the financial markets of a developing country. Earlier in 1999, a similar study was conducted to evaluate the significance of adoption of the International Financial Reporting Standards in Armenia. The researcher of the study, McGee (1999), from his analysis stated that adoption of International Financial Reporting Standards for Armenian companies showed significant difficulties due to lack of training and information on the new accounting standards framework. The researcher noted that the difficulties could be resolved by way of conducting proper training of the staff and ensuring information availability for all. On the other hand, Alp & Ustandag (2009) investigated the developmental process of the International Financial Reporting Standards on global level and how it influenced the practices and performance of developing countries. In this regard, the researchers found that Turkey came across significant challenges while going for the adoption of International Financial Reporting Standards. The challenges which were faced by Turkey in adopting the financial reporting framework included dealing with the complexity of the structure of accounting standards presented under IFRS, lack of awareness and information regarding a number of financial reporting standards which at times accounted for competency issues and other issues which related to the application of the financial reporting standards. In their study, Irvine & Lucas (2006) stated that the adoption and promotion of internationally acceptable accounting framework offers a number of benefits; however, they state that these benefits are not necessarily applicable to the countries which are still passing through the developing phase of their economies. According to Irvine & Lucas (2006), among many benefits associated with the adoption of a financial reporting framework which is internationally recognized and accepted, the foremost benefits is that large business corporations, such as multinationals which have operations in different parts of the world, are able to do away with the preparation of financial statements under different accounting frameworks merely for reporting purposes. Since, this benefit is the foremost benefit and is attributable to large companies which are largely based in developed world, therefore there are no particular advantages associated with the adoption of International Financial Reporting Standards for developing countries. In addition to this, Irvine & Lucas (2006) also stated in their study that by adopting IFRSs, there is a considerable improvement in the professionalism and growth for accounting firms, since they are able to expand their respective services to different parts of the world. Perera (1989) noted the issues of comparability of the financial reporting and information needs of different countries and the ability of developing or under developed countries to benefit from the practices of developed countries. He noted that developed countries have different needs and requirements for financial information and reporting and therefore financial reporting frameworks designed by developed countries are those which can effectively cater their own requirements. In his opinion, it would be inefficient and ineffective for developing countries to follow what developed countries are doing, since information produced through adopting accounting frameworks of developed countries by developing countries may not be useful in providing information which is relevant to their decision making needs (Perera, 1989). The review of past studies in the two sections above have shown that majority of the researchers, on the basis of their empirical evidences gathered through research, have highlighted the importance and significance of adopting International Financial Reporting Standards as far as developing countries are concerned. However, there are some researchers who have expressly stated that adoption of International Financial Reporting Standards pose significant challenges for the developing countries and may in fact be unable to cater the requirements of business entities operating in such countries. Whether Developing Countries shall Adopt International Frameworks of Develop their Own? From the review of Hofstede-Gray model and conclusions reached by researchers in the past, it appears that following internationally applicable financial reporting standards may be appropriate for developing countries. However, there are various other factors to be considered before reaching at a conclusion decision as to whether it is suitable for a country to do so. In fact, the cultural, environmental, regulatory, legislative, taxation and other systems and structure may vary from country to country, which are needed to be analyzed in individually before deciding the adoption of international frameworks, such as IFRS. The fact that researchers have been able to verify the validity of Gray’s model for adopting accounting frameworks on the basis of cultural dimensions is convincing enough that developing countries shall look forward towards adopting International Financial Reporting Standards. However, it is not advisable that the choice of adoption is entirely based on evaluating cultural and accounting dimensions. In fact, numerous research works have been carried out by the researchers in past which highlight merits and demerits of adopting International Financial Reporting Standards. It has been noted that there are a number of potential benefits highlighted by researchers in past on the basis of empirical evidences obtained by them (Chamisa, 2000; Irvine & Lucas, 2006). Keeping these benefits in view, it can be argued that with adoption of International Financial Reporting Standards, business entities operating in the developing countries can attain higher level of efficiency and effectiveness in their accounting and overall business practices. However, some researchers (McGee, 1999; Alp & Ustandag, 2009) have reported certain difficulties in the adoption of International Financial Reporting Standards by developing countries. In this regard, McGee (1999), has noted that adoption of International Financial Reporting Standards for Armenian companies showed significant difficulties due to lack of training and information on the new accounting standards framework. Similarly, Alp & Ustandag (2009) found that Turkey came across significant challenges while going for the adoption of International Financial Reporting Standards, such as dealing with the complexity of the structure of accounting standards presented under IFRS, lack of awareness and information regarding a number of financial reporting standards which at times accounted for competency issues and other issues which related to the application of the financial reporting standards. It is also pertinent to reiterate what Perera (1989) has noted in relation to the issue of adopting IFRS by developing countries. Perera (1989) has noted that it would be inefficient and ineffective for developing countries to follow what developed countries are doing or following, since information produced through adopting accounting frameworks, which are formulated by developed countries, by developing countries may not be useful in providing information which is relevant to their decision making needs. This implies that before adopting, developing countries have to ensure compatibility of International Financial Reporting Standards with their business and accounting practices. List of References Adekoya, O., 2011. Similarities and Differences, IFRS and Nigerian GAAP. Lagos: Pricewater House Coopers International Limited. Ahmed Zakari & Co - Chartered Accountants and Entop Consulting Ltd UK, 2011. International Financial Reporting Standards (IFRS): An Essential course for Getting to “KNOW IFRS”. Lagos. Alp, A. & Ustuntag, S., 2009. Financial reporting transformation the experience of Turkey. Critical Perspective on Accounting, 20, pp.680-99. Barth, M.E., Landsman, W.R. & Lang, M.H., 2008. International Accounting Standards Quality. Journal of Accounting Research, 46, pp.467-98. Borker, D.R., 2012. Accounting, Culture And Emerging Economies: IFRS In Central And Eastern Europe. International Business & Economics Research Journal, 11(9), pp.1003-18. Cai, F. & Wong, H., 2010. The Effects of IFRS adoption on global capital market integration. International Business & Economic Research Journal, 9(10), pp.25-34. Chai, H., Tang, Q., Jiang, Y. & Lin, Z., 2010. The Role of International Financial Reporting Standards in Accounting Quality, Evidence from the European Union. Journal of International Financial Management and Accounting. Chamisa, E.E., 2000. The Relevance and observance of IASC standards in developing countries and the particular case of Zimbabwe. The International Journal of Accounting, 35, pp.267-86. Eddie, I.A., 1990. Asia Pacific cultural values and accounting systems. Asia Pacific International Management Forum, 16, pp.22-30. Epstein, B.J., 2009. The economic effects of IFRS adoption. The CPA Journal, pp.26-31. Gray, S.J., 1988. Towards a theory of cultural influence on the development of accounting systems internationally. Abacus, 24, pp.1-15. Hofstede, G., 1980. Culture's consequences: International differences in work-related values. London: Sage Publications. Hope, O.K., 2003. Firm-level disclosures and the relative roles of culture and legal origin. Journal of International Financial Management & Accounting, 14, pp.218-48. Irvine, H.J. & Lucas, N., 2006. The rationale and impact of the adoption of international financial reporting standards on developing nations: the case of the United Arab Emirates. In 18th Asian-Pacific Conference on International Accounting Issues. Maui, 2006. Jaggi, B. & Low, P.Y., 2000. Impact of culture, market forces, and legal system on financial disclosures. The International Journal of Accounting, 35, pp.495-519. Latridis, G., 2010. IFRS adoption and financial statement effects: The UK case. International Research Journal of Finance and Economics, 38, pp.165-72. McGee, R.W., 1999. The problem of implementing International Accounting Standards: A case study of Armenia. Journal of Accounting, Ethics, and Public policy, 2(1), pp.38-44. Meeks, G. & Swann, P., 2009. Accounting Standards and the Economics of Standards. Accounting and Business Research, 39(3), pp.191-210. Nobes, C. & Parker, R., 2004. Comparative International Accounting. 8th ed. Essex: Prentice Hall. Perera, M.H.B., 1989. Towards a framework to analyze the impact of culture on accounting. The International Journal of Accounting, 24, pp.42-56. Salter, S.B. & Niswander, F., 1995. Cultural influence on the development of accounting systems internationally: a test of Gray's (1988) theory. Journal of International Business Studies, 26, pp.379-97. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Choice between Formulation of Accounting Framework and Adoption of Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1404538-international-financial-reporting
(The Choice Between Formulation of Accounting Framework and Adoption of Essay)
https://studentshare.org/finance-accounting/1404538-international-financial-reporting.
“The Choice Between Formulation of Accounting Framework and Adoption of Essay”, n.d. https://studentshare.org/finance-accounting/1404538-international-financial-reporting.
  • Cited: 0 times

CHECK THESE SAMPLES OF Formulation of Accounting Framework and Adoption of International Financial Reporting Standards

International Accounting

One of the objectives of the framework is to provide a basis for the formulation of international financial reporting standards.... Assessment of International Accounting The International accounting framework provides a conceptual underpinning for international financial reporting standards.... The financial reporting review panel in UK has the aim of ensuring that both public and private companies comply with the companies Act and accounting standards....
4 Pages (1000 words) Research Paper

Conceptual Framework: Impossible Possibility

The establishment of accounting framework board was to standardise the accounting practices and provide theoretical basis for measuring the financial reports.... It was the earliest basis for establishment of conceptual framework by FASB for accounting concepts, reporting standards and objectives of business operations.... The existing problem in converging the FASB and IASB is the conflict between revised and converged framework and reporting standards....
8 Pages (2000 words) Essay

Accounting Conceptual Framework and Regulatory Framework in the UK

It helps the accounting board in its role of reviewing current financial reporting standards and in formulating the standards for future applications.... Basic assumptions in accounting are another set of factors that form elements of accounting framework.... Compare and contrast the accounting conceptual framework and the accounting regulatory framework in the UK Name: Institution: Supervisor: Course: Date: October 29, 2013.... Compare and contrast the accounting conceptual framework and the accounting regulatory framework in the UK Introduction The scope of accounting that defines collection, classification, recording, analysis, and reporting of accounting information to relevant stakeholders identifies the profession's sensitivity problems that amount to legal and ethical concerns....
6 Pages (1500 words) Essay

Conceptual Framework Developed For Accounting

conceptual framework and the U.... In terms of the history of accounting information, Macve emphasized that accounting started and continues to be a double entry journalizing of the company's daily business transactions during the Greek and Roman period.... The disadvantages cannot outweigh the advantages of implementing the conceptual framework of accounting.... Interested parties contribute their inputs to increase the ease in formulating the conceptual framework of accounting....
9 Pages (2250 words) Essay

IFRS Regulatory Framework for Financial Reporting

international financial reporting standards (IFRS) is an accounting methodology that sets guidelines for recording transactions for company financial statements.... These also have certain disadvantages in costs of implementation, lack of detail in practices and in complaint regarding IFRS being weaker Regulators, investors, shareholders, employees, managers and rest of the stakeholders view financial reporting as the most essential element for making financial decisions....
8 Pages (2000 words) Assignment

The Financial Accounting Standard Board

he Financial Accounting Standard Board and the International Accounting standard board have developed a conceptual framework for the purpose of financial reporting.... But in practical the economic, social and political factors play a vital role in influencing the assistance that is provided by the standards.... Before the convergence of the accounting standards the accountants had to face many difficulties due to the differences in the standard provided by the FASB and IASB....
7 Pages (1750 words) Essay

International Corporate Reporting Issues

Since that time, a number of international Accounting Standards have been amended.... There are some more IASs dealing with a number of accounting and reporting frameworks.... Some of these statements are the amendments of accounting Principles Board (APB) opinions.... This paper "International Corporate Reporting Issues" focuses on the fact that accounting provides useful information to decision-makers, thus as the business environment has changed so have the accounting standards that govern the presentation and disclosure of information....
12 Pages (3000 words) Assignment

The IASB Conceptual Framework for Financial Reporting

The paper "The IASB Conceptual Framework for financial reporting" is a great example of a finance and accounting essay.... The present report is a critical analysis of the IASB conceptual framework for financial reporting.... The paper "The IASB Conceptual Framework for financial reporting" is a great example of a finance and accounting essay.... The present report is a critical analysis of the IASB conceptual framework for financial reporting....
7 Pages (1750 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.
Contact Us