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.

Financial Reporting Standards - Essay Example

Comments (0)
Summary
IFRS is the International Financial Reporting Standards. It provides the whole body of accounting standards and disclosure requirements. It has been in existence since mid 1970s. GAAP is the Generally Accepted accounting Principles, which encompasses accounting and reporting standards, applied in the United States but not universally…
Download full paper
GRAB THE BEST PAPER
Financial Reporting Standards
Read TextPreview

Extract of sample
Financial Reporting Standards

Download file to see previous pages... There has been progress towards the development of single, globally accepted accounting standards. The goal is however yet to be realized. The United States is currently working towards the convergence of Generally Accepted Accounting Principles with International Financial Reporting Standards (IFRS).
Crucial convergence projects from the International Accounting Standards Board (IASB) and the U.S Financial Accounting Standards Board (FASB) have continued to produce good results in an effort to converge the two Accounting and Financial reporting standards. This process of dissecting and eliminating the possible difference between that may the two standards is however costly and consumes a lot of time. The alignment of the underlying principles and the overall methodologies is an effective approach. A significant difference continues to arise though the underlying principles and the overall methodology regarding these standards are harmonized. As the FASB and the IASB continues on their convergence work, the U.S Securities and Exchange Commission (SEC) continues to make significant progress aimed at increasing the acceptance of the IFRSs and abolishing the US GAAPs .Also, PWC has helped companies' to successfully understand the IFRS. It has developed a clear IFRS conversion methodology which is aimed at providing lasting solutions (Vincent C. Ross and Institute of Accounting 23).
The Association of Chattered Certified Accountants (ACCA) argues that the convergence of US GAAP and IFRS is crucial because the harmonization of the two standards will help to raise the investors confidence around the world .This is because the same accounting policies and procedures will be used world wide for same events.
The harmonization is also believed to have a cost reduction impact as far as individual companies are concerned .This is due to the high level of confidence in timely and reliable information.
The harmonization is also essential for companies that have joint listings with America and other countries. The preparation costs thus will be minimized. In addition, the convergent of the two standards will enhance worldwide mobility of labor in that professional and in particular, the accountants will be eligible to work in other countries as the same reporting standards apply elsewhere.
The IFRS framework states that the ultimate aim of financial statements is to give information in relation to an entity to users for decision-making. The users of the information in the financial statement include the consumers, employees, management, government, competitors, among other users.
The assumptions underlying in the International Financial Reporting Standards are that the entity is a going concern one and that the entity uses the accrual accounting concept in preparing the financial statements except cash flow preparation. In accrual, concept revenues and expenses are recognized once they occur and not that cash is paid or gained. In going concern, the company is deemed to continue in its operations even in the future neither does it have intentions to close down or curtail its operations. The company directors are thus bound to evaluate whether the going concern hypothesis is appropriate during the actual reporting of financial stat ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
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.
16 Pages(4000 words)Essay
International Financial Reporting Standards (IFRS)
The US GAAP, (Generally accepted accounting principles) is another framework which is followed in many countries. This was created before IFRS. Though the purpose of creating these two frameworks is same but there are many differences in the policies and rules in both of the framework.
3 Pages(750 words)Essay
The role of International Financial Reporting Standards
Management of number and the role of International Financial Reporting Standards Many organizations are beleaguered by entropy, carrying the prevailing information of the company’s useful reports. Often, managers as well as senior personnel within an organization may lack skills and knowledge to handle and keep the company data and that why the aspect of managing numbers comes at hand.
5 Pages(1250 words)Essay
Introduction of international financial reporting standards(IFRS) in Australia
Due to these evolving financial relations between countries, the need to establish a common, convenient and comparable standard for accounts and financial reports. The perceived need to establish a comparable and convenient system of accounting and financial reporting, by promoting harmonisation to establish similar transactions led to the establishment of the International Accounting Standards Committee (IASC).
3 Pages(750 words)Essay
International Financial Reporting Standards
This Essay provides an adequate knowledge of International Accounting Standard (IAS) and General Accepted Accounting Principle (GAAP) and their comparison. Mainly we only emphasize on the 5 IAS and compare their similarities and differences with the GAAP.
8 Pages(2000 words)Essay
International Financial Reporting Standards Essay
Uniformity in adopting financial standards also helps in understanding the nature of business and standings in a better way. Though the international financing standards are being changed from time to time in order to make the accounting practices contemporary, yet the full version of IFRS came into being in the year 2005 when more than 8000 companies in the EU region decided to adopt these standards (Banerjee, 2008).
4 Pages(1000 words)Essay
What were the reason for, waht are the clained advantages of, the adoption in Australia of international financial reporting standards(IFRSs)
All of these factors may be considered to be the backbone of making and developing economic growth in modern market economies (Antill & Lee, 2005). With the
4 Pages(1000 words)Essay
IFRS: International Financial Reporting Standards
The IFRS uses and recommends the use of a standard set of framework, sort of a new language to communicate financial reporting, as explained by KPMG. KPMG said that IFRS “represents a complete change in the language of financial
5 Pages(1250 words)Essay
IFRS ( international financial reporting standards)
International financial reporting standards (IFRS) refer to a set of international standards in accounting that determine how the reporting of certain transactions in the financial statements should be done (Godfrey & Chalmers 2007, p. 233). IFRS tends to be based on
4 Pages(1000 words)Essay
International Financial Reporting Standards
This is unlike this is unlike the other existing financial reporting frameworks which, on the contrary, set rules, and regulations with
2 Pages(500 words)Essay
Let us find you another Essay on topic Financial Reporting Standards for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us