Nobody downloaded yet

Discuss the reasons why we need a regulatory framework for financial reporting. What are the advantages and disadvantages of making accounting rules by law as opposed to using IASB standards - Essay Example

Comments (0) Cite this document
Summary
Changes are being proposed to the regulatory framework arising out of three major reasons (a) the move by the European Commission towards…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Discuss the reasons why we need a regulatory framework for financial reporting. What are the advantages and disadvantages of making accounting rules by law as opposed to using IASB standards
Read TextPreview

Extract of sample
"Discuss the reasons why we need a regulatory framework for financial reporting. What are the advantages and disadvantages of making accounting rules by law as opposed to using IASB standards"

Download file to see previous pages 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). When different financial accounting standards exist in different countries, it may be necessary to harmonize them and this can only be achieved through modification of the financial regulatory networks. In this context, a report published by the Institute of chartered accountants in Scotland offers the view that the current position in the context of globalization is such that there is an “ever increasing volume of accounting rules”, which is not sustainable in the long run (ICAS, 2006:2). It’s only principles based accounting is likely to be beneficial
Domestic law and regulation has changed in different ways. First, the London Stock exchange was once self regulatory but it is no longer the Listing authority within the U.K. The UKLA (UK Listing Authority) which is a part of the Financial Services Authority (FSA) is now the responsible authority for this purpose. Second, professional bodies which are a part of the UK Accountancy profession, have set up their own private regulatory framework – the Accountancy Foundation – to provide independent oversight of their auditing standards, ethical standards and regulatory activities, including disciplinary procedures. New regulations have also been issued in respect of limiting the remuneration paid to directors and the Companies Act has also been modified (Fearnley and Hines, 2003). These changes in the domestic law mean that the framework which existed earlier and was largely self-regulatory may no longer be adequate.
Bullen and Crook (2005) have explained why a conceptual framework is needed. Both the FSAB and IASB, share a common goal of ensuring that their standards are “principles ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Discuss the reasons why we need a regulatory framework for financial Essay”, n.d.)
Discuss the reasons why we need a regulatory framework for financial Essay. Retrieved from https://studentshare.org/miscellaneous/1561977-discuss-the-reasons-why-we-need-a-regulatory-framework-for-financial-reporting-what-are-the-advantages-and-disadvantages-of-making-accounting-rules-by-law-as-opposed-to-using-iasb-standards
(Discuss the Reasons Why We Need a Regulatory Framework for Financial Essay)
Discuss the Reasons Why We Need a Regulatory Framework for Financial Essay. https://studentshare.org/miscellaneous/1561977-discuss-the-reasons-why-we-need-a-regulatory-framework-for-financial-reporting-what-are-the-advantages-and-disadvantages-of-making-accounting-rules-by-law-as-opposed-to-using-iasb-standards.
“Discuss the Reasons Why We Need a Regulatory Framework for Financial Essay”, n.d. https://studentshare.org/miscellaneous/1561977-discuss-the-reasons-why-we-need-a-regulatory-framework-for-financial-reporting-what-are-the-advantages-and-disadvantages-of-making-accounting-rules-by-law-as-opposed-to-using-iasb-standards.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
IASB improved conceptual framework for financial reporting
...of financial reports. 2. Comparing and contrasting the IASB Framework and the ASB Statement of Principles. As it was mentioned above, two standard-setting boards work together in order to achieve a consensus in standardisation of financial reporting. It is not an easy task, taking into account the difference in the origins and forms of the UK and US regulatory systems in this area. While the UK system is primarily based on company law, the US system is based on market regulations; thus, the former intends to emphasise stewardship and...
12 Pages(3000 words)Essay
Financial Reporting - International Accounting Standards
...the corporate honchos about the impact and advantages of International Financial Reporting Standard to the company is very important else it becomes a challenge for International Accounting Standards Board. International Accounting Standards Board’s Framework International Accounting Standards Board uses the framework for the preparation and presentation of financial statements to set consistent principles, internationally converged and lead to financial reporting that...
12 Pages(3000 words)Essay
Conceptual Framework: Financial Reporting
...?Running Head: CONCEPTUAL FRAMEWORK Conceptual Framework Conceptual Framework Introduction The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are working together to develop a robust conceptual framework for the purpose of financial accounting and reporting. The effort is aimed to orchestrate the financial systems of International Financial Reporting Standards (IFRS) and the...
4 Pages(1000 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...
4 Pages(1000 words)Assignment
Financial Reporting Standards
...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...
8 Pages(2000 words)Essay
International Financial Reporting Standards
...framework underlying its financial reporting standards and interpretations, the Framework for the Preparation and Presentation of Financial Statements (the Framework). The Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users Introduction: 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...
8 Pages(2000 words)Essay
IFRS Regulatory Framework for Financial Reporting
...IFRS Regulatory Framework for Financial Reporting Contents Contents 2 Introduction 3 2.Advantages of IFRS adoption 3 3.Challenges in adoption and expansion of IFRS 6 4.IASB’s Attempt to Overcome Challenges 8 5.Conclusion 9 Reference List 10 1. Introduction International Financial Reporting Standards (IFRS) is an accounting methodology that sets guidelines for recording transactions for company financial statements. These standards have been so formed that it replaced the GAAP and allows a uniform accounting standards to be practiced all over the world. Such standardization of accounting practices facilitates international transactions, reporting and comparison. These also have certain disadvantages in costs of implementation, lack... of...
9 Pages(2250 words)Assignment
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
FINANCIAL REPORTING & ANALYSIS / IASB Conceptual Framework for Financial Reporting
...). The IASB’s framework describes a reporting enterprise, but fails to choose between these two concepts. In as much as the International Financial Reporting Standards and the US standards both need the preparation of amalgamated financial statements, and offer the guidelines on how to go about it, the IASB’s standards have conceptual inconsistencies and gaps that are hard to address without a sufficient concept of the reporting entity. For instance, there is a gap in handling some special-purpose entities (Crook and...
8 Pages(2000 words)Essay
FINANCIAL REPORTING & ANALYSIS of IASB Conceptual Framework for Financial Reporting
...standards into national regulatory and legislative systems on designing and operating the regulatory framework with that of the other regulatory institution and instruments that would contribute towards enforcement and monitoring of the international standards. The IASB assumes and identifies the existence of the policy conditions. The structure and the characteristics of the national economies played a major and an important role in improving the quality of the financial reporting. There is an urgent necessity of formulating a proper and common accounting...
7 Pages(1750 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 Discuss the reasons why we need a regulatory framework for financial reporting. What are the advantages and disadvantages of making accounting rules by law as opposed to using IASB standards for FREE!
Contact Us