International Accounting Standards And Financial Reporting Quality

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Have International Financial Reporting Standards Increased Financial Reporting Quality? LUAN LOKE 9750355 MY-HANH SUSAN HONG 7535260 Total word count: 2040 Word count: 1542 Table of Contents Executive Summary Page 3 Introduction Page 4 Harmonising and Standardisation Page 5 Of Accounting Standard Adopting International Page 6 Accounting Standard Reasons why Accounting Page 7 Standards decline Conclusion Page 8 References Page 9 Executive Summary To, The Chief Accountant of the Australian Securities & Investments Commission With growing awareness that different standards have a considerable impact on profit figures and valuation of assets, this report seeks…show more content…
High quality reporting from the firms, can lead to profitable figures for the upcoming years. Although in terms of the accounting qualities within these reporting, whether the firm has adopted the International Financial Reporting Standards (IFRS) or not they would most likely be affected through the interpretation of their reporting. Accounting qualities can be positively improved or negatively affected when managers decide which accounting discretion is to be chosen; as some accounting discretion will benefit managements’ wealth hence accounting quality has been reduced. Through the analysis of these studies and journal articles, we will examine the different aspects of IFRS, the purpose of IFRS and overall whether it has provided an increase or decrease in accounting qualities within firms’ financial reporting. Yours truly, Luan Loke (9750355) My-Hanh Susan Hong (7535260) Introduction Since 2005, the International Accounting Standards Board (IASB) have encouraged countries to adopt a set of accounting standards that is internationally recognised in order to improve transparency between users and providers of financial reports. The understandability and interpretation are also important factors behind the driving forces of implementing such a standard. As of today, over 7000 listed firms in the European Union alone have adopted such standards along with other countries (including Australia, Canada, Chile, India, Israel, Korea, Mexico,
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