Analysing Anderson, Demic and Associates - Research Paper Example

Download file to see previous pages The paper "Analysing Anderson, Demic and Associates" is an amazing example of a Finance & Accounting research paper. The purpose of this report is to investigate the impact of the adoption of the new accounting conceptual framework. Gassen (2008) suggested that for an activity such as financial accounting, it is very important to develop a conceptual framework for purposes like collecting board rules, accepted truths, guidelines, and other crucial ideas. 

An accounting conceptual framework can be defined as a set of given rules and guideline or objectives which results to the creation of certain guidelines and standards which should be adhered to.  The main role of the accounting conceptual framework is to:

1. Increase the users understanding of the company’s financial statement.
2. Facilitates accounting standards and rules

• Facilitate ways to measure accounting information

1. Give consistency in financial statements.
2. However, the main benefits of the current accounting (2010) conceptual framework are outlined below.
3. Assist the users of financial statements in interpreting accounting information.

 

 

 

 

 

 

 

 

 

 

1.2 Purpose and scope

The purpose of this study is to give an in-depth analysis of the criticism against the proposed accounting conceptual framework 2015. The final results show that the current conceptual framework does not go hand in hand with the objectives of financial reporting. However, these findings have close relation with standard-setting and lobbying of accounting standards.

Reliability is the only accounting concept that has an affirmative geometric significant affiliation with intent (ACCA 2014). The accounting profession is in front of a choice between relevance and reliability in financial reporting, as there is an intrinsic substitution between reliability and relevance. Reliable information is characterized by objectivity and verifiability, which is related to historical cost accounting. Alexander, Britton & Jorissen (2005) stated that relevance involves any information which is relevant to the users of the financial statement.

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