The International Accounting Standards 17 - Essay Example

The standard setting body that helps in formulating the standards for the organization is the international accounting standards Board (IASB) (IFRS Foundation.... Department of Accounting and Finance FINANCIAL ACCOUNITNG 2 international accounting standards BOARD by and Number An assignment submitted in partial fulfilment of the assessment for the Financial Accounting 2 Table of Contents Chapter 1: Introduction 3 Chapter 2: IFRS and IASB 6 Chapter 3: IFRS and Fair Value System 11 Chapter 4: Practical implementation of International Financial Reporting Standards 15 Chapter 5: Conclusions, Implication and Recommendation 16 Reference List 18 Chapter 1: Introduction The main aim of the report is to elaborate the facts and objectives of IFRS and IASB....

The accounting approach does not measure the large gaps between the true value of the firm and the observed market value.... Shareholders in a firm rely on accounting practices more that economic calculations because accounting numbers are easily available for analysis.... Every accounting decision has an economic consequence while the changes in the economic picture are not necessarily reflected in accounting....

No central source of accounting standards existed in Canada before 18646.... accounting standards were governed by common law.... In accordance with the Encyclopaedia Britannica (2007) accounting is the systematic development and analysis of information about the economic affairs of an organization.... (Encyclopedia Britannica, 2007) The aim of this paper is to critically compare and contrast the accounting methods, structure and regulation in Canada with the UK including a critical and detail analysis of both current issues and academic literature surveyed relevant to the country....

One such organization is the international accounting Standard Board, IASB, which was formed in 2001.... The paper "The Usefulness of accounting standards" considers accounting standards conflict with the decision-making process of the company and may cause hindrance in the smooth data flow....  … accounting standards conflict with the decision-making process of the company and may cause hindrance in the smooth data flow....

It sets out the accounting principles for Provisions, contingent assets and contingent liabilities.... Before the issue… f this standard there was great concern in this area of accounting where companies had been accused of manipulating the financial statements and of creative accounting. IAS 37 was issued in order to deal with the subjective area of provision and to prevent the use of ‘big IAS 37 requires that (in accordance with the definition of a liability) a provision should be made where the matter gives rise to a constructive or legal obligation and where there is a probability that there will be an outflow of economic benefits which can be reliably measured....

In classifying leases, the international accounting standards Board (IASB) took into consideration both the lessee and the lessor (Reinstein & Weirich, 2005).... This paper "international accounting standards and Accounting Quality" presents the International Accounting Standard 17, which purpose is to set the accounting policies and disclosures that are relevant to be used with regard to operating and finance leases.... hellip; IAS 17 document entails the objective, scope, classification of leases, sale and leaseback transactions, and transitional provisions....

IAS 17 describes how to account for the leases depending on the type of lease.... On the other hand, operating leases form an expense to the IAS 17 has undergone many revisions in the past to improve its application.... The purpose of IAS 17 is to classify leases and provide the policies to guide how a firm treats leases in its financial statements.... IAS 17.... However, even with all the amendments and revisions, it still has some issues that cause problems in its application in accounting for leases....

However, The International Accounting Standards 17 (IAS 17), leases do not distinguish between operating and financing leases.... This paper tells that the use of international accounting standards has numerous advantages to organizations.... Therefore, changes in accounting standards for leasing will influence the overall preparation of financial statements.... Considering leasing is worldwide business the differences in accounting standards can result in substantial issues of non-comparability of entities....