Advantages Of International Accounting Standard 16

The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy

This article talk about the revolution in accounting. The revolution in accounting through five different stages, there are scientific revaluation, accounting disciplinary matrix, anomalies and professional insecurity, alternative proposals and their evaluation and schools of though. For the first stage, scientific revaluation become the fundamental of the accounting revolution. It provides the technical function to accountants as it promote the academic paper works to a more efficient way. Base on the revaluation of scientific, the information about accounting records become more regular pattern. Therefore, the rule of accounting getting more complete and internationalization. After the disciplinary matrix established up, the anomalies and professional insecurity also changed. Rely on the conventional accounting practices the anomalies and professional insecurity has changed a lot. The accountants’ practices used to be critics. However, it turned to level practices. After the revolution of all above, alternative proposals has changed. For example, the asset values used to be based on the historical cost system, but after the alternative proposals and their evaluation, it could be have another way to

As the complexity of our financial economy develops it is important that our accounting standards progress in accordance. Accounting is very important to the development of the global and local economies. Accounting is basically the gathering, summarizing and presenting of financial information of an entity to interested internal, external and possible investors. This information should be presented in a non-bias way so that other people are able understand.

Accounting has been playing a very important role in many places such as Australian accounting standards. Australian accounting standards is also developed by the Australian Accounting Standards Board (AASB). This essay will firstly discuss what AASB is, the role and the functions of AASB. And then, following this, the other projects’ role such as Financial Reporting Council (FRC) and International Accounting Standards Board (IASB) and the relationship between AASB, FRC and IASB.

Why do we study comparative accounting? Countries around the world have different aspects such as taxation, legal systems, culture and colonial influence that differ the way accounting is reported. Ultimately the need for fair presentation is the final objective to comparative accounting. Thousands of years ago when accounting was first practiced, each country practiced financial reporting according to the power and strengths in their country, regardless of how accounting was reported in neighboring countries. Nowadays, because the world is becoming more globalized and harmonized, standard-setters feel the need to report their accounting in a uniform way. The International Accounting Standards Board [IASB] was formed as a non-for-profit

This difference is also tied to the movement of globalization by way of the internal customs from around the world. Based on these practices the account standards around the world are created from a different basis. In the U.S, accounting standards are based on “bright lined rules.” Whereas, in most of the world accounting standards are based off of principles, with the emphasis on principles the international rules focus on the heart of the law. Rather than in the U.S these “bright lined rules” have been created as a result of the multitude of industries located here. The rules however, do not reflect the heart of the law; rather they create a line to be maintained.

A variety of parties are interested in and affected by the development of accounting standards. Various users of accounting information have discovered that the best way to impact the formulation of accounting standards is to attempt to influence the standard setters. The CAP, APB, and FASB have all come

The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have

According to Deegan (2014), the fact that new setting accounting standards will be occupied by real economic and social outcomes. Intangible Assets is always a big question because of the puzzling value estimates. It is hard to measure the correct value of intangible assets (IAs), this practice is generated to reduce the transparency. Australia is the first country to adopt IAS 38 from 2005 fiscal year. This adoption has a huge argument about the implementation and the main reason is to change some of prevailed accounting standards in Australia and accept internally generated intangibles. This report will highlight key findings in the adoption of IAS 38 in Australia and assess the impact of adoption in Europe.

Generally accepted accounting principles allows the accounting profession to follow a recognized organization of objectives, to provide a structure for solving problems, to improve the understanding of financial statement and confidence in financial reporting, and to develop contrast among companies financial statements that can be generally accepted and universally practiced, “generally accepted” means that a reliable accounting organization has developed a standard of reporting that has been accepted because of the universal application (pg. 6, Kieso, Weygandt, & Warfield, 2007). There are four organizations that are evolved in the

Historical Cost Accounting is a traditional valuation method as it reflects only on the past cost of the asset, however in the contemporary business environment companies must remain flexible and transparent. This belief has lead to the creation of several other valuation methods, due to word constraints I have focused primarily on Fair Value Accounting as an alternative to Historical Cost Accounting. Although Fair value accounting is a theoretically superior valuation methodology, there are several severe problems in its current application, due to lax regulations and ineffective methods of determining current values of non-current assets. These problems within Fair Value Accounting have ensured that most companies

For over a decade, the global community has claimed a set of universal accounting standards. These standards are expected

Define the extent of judgment in planing financial statements by formulate the characteristic, functions and limits of financial accounting and reporting. It also increases comparability of financial statements by decreasing the number of alternative accounting methods. If standards were derived from a reasonable style of concepts, this will lower the accountants error to political tension. Likewise, reporting requirement will be more constant and fair because they will stem from an orderly set of concepts. The need for specific accounting standards will be reduced. The setting requirement will be more economical because issues should not be re-debated from different viewpoints. Enhance the credibility of financial reporting and in turn help to reduce accounting’s vulnerability to political

In October 2004 at their mutual meeting, the IASB and the US FASB chose to add to personal plans a combined task to create a typical theoretical structure, based on both the current IASB and the FASB Conceptual Framework, both Boards would use as a premise for their accounting standards. The process of measurement determines the monetary amounts at which the elements of the financial statements are to be recorded and carried in the financials book. This report pays the concerns to the three major trends of Measurement systems, which are:

The principles are the result from the accounting practice that has been used and improved over the time. The deeper explanation about the statement is that, accounting standard such as IFRS is created based on the previous accounting practice itself rather the theories. The theories are useful in guiding the other field like finance and economics. There is also evidence that the accounting theory exists after standard has been practiced (Cluskey, Ehlen and Rivers 2007). The father of accounting, Luca Pacioli explained about double-entry booking in one of his studies. The study described the practice and explained to the readers the logic behind it. The research had given birth to dozens of studies made by theorist to further discuss about the accounting practice. By this evidence, the readers can also conclude that not only the standard that exist from accounting practice but in fact, accounting theory also exist to explain the nature of the practice. Back to the purpose of this paper, accounting theory plays no role in the setting of accounting standard is approved by two points: the process of setting accounting standard itself is a political activity and the development of accounting standard is influence by the existing accounting practice not accounting