Statement of the Problems and Legal Frameworks - Case Study Example

Accounting, therefore, entails a statement of accepted accounting rules.... Financial statements include the balance sheet, the income statements, statement of cash flow and the statement of shares holders' equity.... Reliable information is faithfully represented, neutral, prudent, and complete and substance is given priority over legal forms of various elements.... Financial statement reveals the financial situation of an institution; they are very important for the stakeholders of the institution....

There are strong legal frameworks on many relevant commercial subjects to facilitate business promotion at ease.... The paper 'legal Framework of Business in Hong Kong' looks at the legal framework of Hong Kong, which is supportive of business and commerce.... There are a simple legal framework, soft taxation, almost no customs duties.... Futures, Commission (SFC), the Office of the Commissioner of Insurance (OCI) and the Mandatory Provident Fund as the principal regulatory authorities and the legal bodies in Hong Kong to regulate banking, securities and futures, insurance and retirement schemes industries respectively and finally the Hong Kong's Prevention of Bribery Ordinance to check corruption in business transactions....

This discussion talks that Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) are experiencing some problems in their efforts of achieving a joint theoretical framework that can be accepted in the whole world.... .... ... ... According to the report the main root of this problem is the fact that the IASB outline applies to both private and public sector's business entities whereas the FASB framework concerns both business with the exemption of the non-profit businesses in the private quarter....

Due to globalization, many UK companies are now acquiring subsidiary companies in other countries, which function under different financial parameters and there may be a need to modify the existing regulatory and financial frameworks (Haller and Walton, 2003).... The paper "Regulatory Framework for Financial Reporting" explains the named framework is needed to ensure that there is consistency across financial standards in various countries, also helps to define financial parameters more clearly as compared to statutory provisions, which provide a more generalized set of rules....

The statement of Financial Accounting Concepts (SFAC) highlights five main qualitative elements of accounting information: understandability, relevance, compatibility, and consistency.... As the paper "IASB Conceptual Framework for Financial Reporting" states, the conceptual framework has come under sharp criticism from observers for not meeting its functional purposes, primarily that of providing a foundation for guiding standard-setting and addressing accounting controversies....

The paper 'Accounting Conceptual Framework for Financial Reporting' seeks to evaluate the manner of setting conceptual frameworks, which surrounds two basic theories- one is traditional theory and the other is assets- liability based theory.... Interestingly both these theories have different objectives....

There have been varied opinions about conceptual frameworks, some in favor of citing out the merits while others are against the idea.... There have been varied opinions about conceptual frameworks, some in favor of citing out the merits while others are against the idea.... Good conceptual frameworks turn to demonstrate real concepts in a much understandable and applicable way.... Conceptual frameworks are developed to demonstrate the relationship between variables in various concepts and helps in relating several factors....

The conceptual framework is a normative theory, it prescribes basic principles to adhere to when preparing a financial statement.... The conceptual framework is a normative theory, it prescribes basic principles to adhere to when preparing a financial statement.... The conceptual framework is a normative theory, it prescribes basic principles to adhere to when preparing a financial statement, it is also referred to as a coherent system of concepts that are guidelines to accounting standards that are used in financial reporting....