INTERNATIONAL FINANCIAL REPORTING - Essay Example

Comments (0) Cite this document
Summary
In this report, the objectives of financial statement as valid and reliable informative sources regarding an entities’ financial performance and changes in its financial position are critically evaluated. How far the above argument remains valid is debatable given the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
INTERNATIONAL FINANCIAL REPORTING
Read TextPreview

Extract of sample "INTERNATIONAL FINANCIAL REPORTING"

Download file to see previous pages However, adopting IFRS itself may not always result in increasing the quality of financial information. In addition to adopting IFRS several relevant changes in the overall economic and institutional framework need to be implemented to achieve the enhanced quality financial reporting. Further, before implementing IFRS fully to all countries, an international consensus taking into account of the country specificities needs to be obtained regarding the treatment of various financial instruments and various accounting procedures .This is needed to implement IFRS without affecting the information provided by the financial statements of enterprises
Financial Statements of an enterprise are intended to give valuable information about the financial health of the company to its owner investors and lenders (Tracy, 2004).In other words, they are supposed to give information about the financial position, performance and changes in financial position of the enterprise. These are a major source of financial information that helps the users in making decisions about economic activities. Thus according to IASC(1989,paragraph 12), “The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.”
On the other hand, it is argued that the preparers of the financial statements can manipulate the financial statements by the transformation of financial accounting figures from what they actually are to what preparers desire by taking advantage of the existing rules and/or ignoring some or all of them (Nasar, 1993:2). It may not be illegal in all cases but they are considered as unethical (Amt et al, 1999). This process is called creative accounting. The inappropriate use of creative accounting has resulted into financial statement frauds in many cases, which has been an issue of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“INTERNATIONAL FINANCIAL REPORTING Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
INTERNATIONAL FINANCIAL REPORTING Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/miscellaneous/1557852-international-financial-reporting
(INTERNATIONAL FINANCIAL REPORTING Essay Example | Topics and Well Written Essays - 3000 Words)
INTERNATIONAL FINANCIAL REPORTING Essay Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/miscellaneous/1557852-international-financial-reporting.
“INTERNATIONAL FINANCIAL REPORTING Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/miscellaneous/1557852-international-financial-reporting.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF INTERNATIONAL FINANCIAL REPORTING

International Financial Reporting Standards

...?Introduction International Financial Reporting Standards were implemented after the overall complexity of business organizations as well as the nature of accounting relatively changed. International Financial Reporting Standards (IFRS), therefore, have been considered as an effort by the world accounting governance bodies to ensure that uniform reporting standards are adapted across the whole world. Due to the globalization process, organizations have become truly global in nature with their presence in different countries of the world. However, due to different accounting standards prevailing in each country,...
8 Pages(2000 words)Dissertation

International Financial Reporting

...statements; the shareholders, institutional and small investors were given and shown such financial statements which were not totally representing a ‘true and fair view’; the financial statements either to a minimum extent or to a considerable extent were filled with the help of window dressing and creative accounting. Unfortunately, the role of International Financial Reporting Standards, also known as International Accounting Standards Board, did not come for any help to rescue the international world economy from the threat and force of the 2008 financial crisis. The main reason for that, the...
12 Pages(3000 words)Essay

International financial reporting

...Faithful Presentation Information must represent faithfully the transactions it purports to represent in order to be reliable. There is a risk that this may not be the case, not due to bias, but due to the inherent difficulties in identifying the transactions or deciding on an appropriate method of measurement or presentation. Thus, it is advised that in the case where measurement of the financial effects of an item is uncertain, entities should not recognize such as an item, for example, an internally generated goodwill. 3.5 Comparability In terms of comparability, accounting information must be reported in a similar manner so that users are able to compare the entity’s annual...
11 Pages(2750 words)Essay

International Financial Reporting Standards

...?In the United s the prevailing accounting framework utilized by professionals in the field of accounting and finance is the U.S generally accepted accounting principles (GAAP). Despite its effectiveness in other parts of the world U.S. GAAP is not an accepted accounting framework. In the international community the fastest growing accounting framework that is being used in the business industry of different countries is the international financial reporting standards (IFRS). The international financial reporting standards were created by the International Accounting Standards Board (IASB). The IASB is...
4 Pages(1000 words)Assignment

International Financial Reporting

...Introduction International Accounting Standards (IAS) provides objective and detailed of accounting standards while developing financial statements. The aim is provide standardised, coherent, consistent, and useful information to various users of the financial information. To date, a total of 41 IAS have been released; however, 10 have been superseded by other IAS or IFRS (International Financial Reporting Standards); and 2 have been withdrawn by International Accounting Standards Board - IASB (IAS Plus, 2009). This paper provides a broad introductory review of the five standards from IAS; namely: IAS 16 - Property, Plant...
13 Pages(3250 words)Essay

International Financial Reporting Standards

...About U.S. Companies Switching To International Financial Reporting Standards (IFRS) Beginning In TABLE OF CONTENT: PAGES 1) Executive Summary 02 2) Introduction 02 3) Similarities and Differences 03 4) IAS-2 (Inventories) 03 5) IAS-11 (Construction & Contract) 04 6) IAS-16 (Property Plant & Equipment) 05 7) IAS-36 (Impairment Losses) 06 8) IAS-39 (Intangible Assets) 06 9) Diversification into IFRS from GAAP and its Impact 07 10) Conclusion 09 11) Bibliography 09 12)...
8 Pages(2000 words)Essay

INTERNATIONAL FINANCIAL REPORTING

...INTERNATIONAL FINANCIAL REPORTING Introduction The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), has ventured on a project to reconstruct the bases of financial accounting by retooling the Conceptual Framework. The Conceptual Framework is similar to a charter for financial reporting, rendering the basis for standards. Had there been no framework, accounting standards would adopt the easier solution for a particular issue. A solution which is coherent with an interconnected theory of accounting would never be the choice. The Conceptual Framework is a...
11 Pages(2750 words)Essay

International Financial Reporting Standards

...Research Proposal The impact of global financial crisis on International Financial Reporting Standards (IFRS) and financial accounting [Course Title] [Instructor Name] [Date] Abstract The purpose of this paper is to develop a research proposal for the selected research topic “The impact of global financial crisis on International Financial Reporting Standards (IFRS) and financial accounting”. The purpose of this research is to focus on the effects of global economic recession on international accounting standards by identifying major areas of accounting...
8 Pages(2000 words)Research Paper

International Financial Reporting

...Accounting Standards Part A The regulatory and conceptual framework of international accounting A conceptual framework of accounting is the theoretical principles, which strengthens both the development of new reporting practices and the evaluation of the existing ones. It underlies why we do, what we do and how we do it. The conceptual framework will determine what business information is to be reported, how it should be reported, how it should be measured and how the information should ultimately be communicated. The IASB-international Accounting standards Board issued a system for the arrangement and presentation of money related explanations. This...
11 Pages(2750 words)Essay

International Financial Reporting Standards

...International Financial Reporting Standards Task International Financial Reporting Standards (IFRS) IFRS is a set in international accounting standards developed by the IASB with the main goal of providing a global framework for public companies in the preparation, as well as the disclosure of their financial statements. Consequently, the financial reporting and disclosure standards provided by IFRS act as a guideline for the preparation, reporting, and analysis of financial statements provided by public companies. This is unlike this is unlike the other existing financial reporting frameworks which, on the contrary, set rules, and regulations with the key aim of governing the preparation, presentation, as well as the reporting... ...
2 Pages(500 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.

Let us find you another Essay on topic INTERNATIONAL FINANCIAL REPORTING for FREE!

Contact Us