Financial Analysis

Despite those enormous advantages, it has been argued that IFRSS adoption lead to significant costs. The main argument is that IFRSs do not consider local needs and priorities as every country has their own ‘business environment, legal systems, cultures, language and political environment’ (Henderson and Peirson, 2000 cited from Malthus, S., 2004). However, to overcome this problem, IASB can accommodate flexible reporting standards that enable companies to choose alternatives that are more suitable for their external condition. It is opinion of some opponents of IFRS adoption that IAS is ‘insufficiently detailed’ (Uddin,M.S., 2005, p.4) that require accountants’ and auditor’ professional judgment. However, overly detail might be contra productive and not flexible in anticipating every changes and differences.

In September 2002 the IASB and the FASB agreed to work together, in consultation with other national and regional bodies, to remove the differences between international standards and US GAAP. (Dorata, 2008) However, the convergence of IFRS and FASB is coming to the end. (Golden, 2013)

With Samsung being the only international company evaluated, there doesn't seem to be any significant impact of IASB over FASB standards for accounting. With the ratios used, the core components of the balance sheet and income statement were utilized. The key elements of revenue, expenses, assets and liabilities weren't significantly impacted by IASB over FASB standards.

In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).

The IOSCO plan does not cover accounting standards.(66) These standards are important for providing financial statements in a scheme that are prepared in the similar manner as those by issuers from other countries. The development of international accounting standards is the subject of a distinct project by IOSCO, and many accounting professionals who are concomitant with that undertaking are hopeful that a satisfactory solution is within reach.(67) Supposing, however, that an agreement is possible on a core set of financial standards and that they too are embraced by securities regulators as compulsory for foreign issuers, the road to commonality has at least two other impediments.

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

In this essay, I will briefly explain what happened during the financial crisis of 2007-09, and also discuss the contribution of the government to the financial crisis.

Since 1975, Patton Fuller Community Hospital (PFCH) has been serving the people of the Kelsey and the surrounding communities. PFCH is a for-profit organization and is owned by physician active within the facility. Owned by the physicians active at the hospital, the organization is governed by a 14 member board of directors, which consist of 12 physician-owners, with the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) as non-voting members. The facility is dedicated to providing cutting-edge medical services. PFCH

Be that as it may, expanding the similarity of principles is difficult. It can't be refined by the FASB alone; it requires collaboration and assentation among standard setters around the globe. Distinctive beginning stages, diverse business societies, diverse administrative situations, diverse budgetary reporting targets, and diverse legitimate frameworks can make it troublesome for standard setters around the globe to concede to the same bookkeeping elective. Also, an option that is seen as a change in one nation may not be seen as a change by another nation. For instance:

IASB stands for International Accounting Standards Board. The IASB is a standard-setting board whose main role is to ‘develop and approves ‘International Financial Reporting Standards’ so that all financial reports and financial statements globally are detailed and can be easily read by all users. With constant regulation and development, it ensures all business’ financial records are formatted the same and easy to transfer information to and from them. To become an IASB member isn’t an easy task. IASB members are appointed through an in-depth process undertaken by the trustees. The trustees have no say in any matters regarding standards, their only role is to govern the IASB.

On February 24, the SEC unanimously agreed to publish a statement of continued support for a single set of high-quality global accounting standards. The SEC acknowledged that IFRS is best positioned to be the global standard. Even without a set conversion timeline from the SEC, IFRS has been affecting

The attraction of uniform accounting rules consequent on the potent force of globalization drives the widespread adoption of IFRS since 2005. It is indeed impressive that more than 100 counties have adopted IFRS to date; despite it is embraced in differing forms and to a varying degree. Among those, the European Union is a paradigmatic example of mandatory adoption with strong enforcement (with few modifications). The adoption of IFRS in the EU was marked by the enactment of the Regulation (EU) NO. 1606/2002 of the European Parliament and of the Council on the application of international accounting standards (also known as the Accounting Regulation) , requiring all European companies whose debt or equity securities trade in a regulated market

Another challenge convergence faces is the fact that under IFRS, there are little industry-specific standards, which has led many commentators to voice “concerns about how IFRS would impact their particular industry” (AICPA, 2009). Other critics have voiced concerns regarding the uncertainty surrounding funding for the IASB as it’s “largely funded through voluntary contributions from a wide variety of participants across the world’s capital markets. The concern with that model is that it leaves the IASB open to the perception that organizations that provide funding could try to influence the accounting standards” (SIAC, 2012). This observation questions whether there is true independence of the IASB and the integrity of its standard-setting process.

These areas have been underlined, as well as the accounting regulations, due to the economic difficulty that has been experienced and for the IASB to take a course of action to try re-gaining the trust of investors and large organisations. The amendments made by the IASB consist of: impairments, connecting gaps involving different accounting standards which apply to similar circumstances, financial instruments, changes in the area of consolidation, derecognizing, and improving the accounting for the off balance sheet items (IASB, 2009). ). The issue of bridging the gap between accounting standards has gone through some transition. Initially accounting regulations were able to use various techniques, in which increased the difficulty of compatibility. This was highlighted by the European Unions request for changes in re-classifying financial assets, analogous to the stance taken in the US, namely the Generally Accepted Accounting Policies (IAS)

On 28 September 2010 the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) issued a Press Release announcing