International Financial Reporting Standards ( Ifrs ) Conceptual Framework

The issue of adoption of international financial reporting standards (IFRSS) in Australia has been controversial issue since the first time Australian Financial Reporting council (FRC) announced the policy in 2002. Many believe that IFRSS adoption will lead to great advantages such as enhance financial report comparability, improve quality of financial reporting, attract more foreign investor, and other significant advantages. However, some also believe that the adoption merely result in disadvantages and cost for Australian business, accounting profession and even Australian government.

This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This

Over the last decade, the way in which financial reporting is carried out has seen some significant advancements. One of the most momentous changes has been the introduction of International Financial Reporting Standards (IFRS), which have been adopted broadly throughout the world, with one major exception, the United States. Before accounting standards can be considered truly global, this exception has to be resolved. The prospect of such an occurrence took massive strides in 2002, when the Financial Accounting Standards Board (FASB); responsible for standard-setting in the US, announced their intention to work alongside the IASB in order to converge IFRS with US GAAP. For the first time, a truly global set of accounting standards seemed a

The journal article named “The effect of IFRS Adoption on the financial reporting of local government entities” By Kamran Ahmed and Manzurul Alam aims at finding the changes of key accounting components surplus, equity and asset while changing accounting policy from Australian Accounting Standards (AAS) to International Financial Reporting System (IFRS).Introduction of International Financial Reporting System (IFRS) is thought to be a paradigm shifting event in financial reporting system. Australia is one of the first countries to adopt IFRS for the local government. It was a great challenge taken by Australia to adopt IFRS before USA and EU. In 2004 Australia adopted IFRS to their accounting policy. Afterwards, through the

The article is showing the relationship between IFRS adoption and the effect on the quality of the information in low investor protection countries. International Financial Reporting Standards (IFRS) is a set of accounting standards, developed and maintained by a not-for-profit organisation which is called International Accounting Standard Board (IASB) (http://www.ifrs.org/About-us/Pages/What-are-IFRS.aspx). The purpose of IFRS is to provide a global framework and also a general guideline to all firms such as public companies, so that they can prepare and disclose their financial statement globally. It is interpreted as it can provide the investors and other users (internal and external users) with financial statement that has ability to be compared with other company either within countries or overseas (http://www.ifrs.org/About-us/Pages/What-are-IFRS.aspx // http://searchsecurity.techtarget.co.uk/definition/IFRS-International-Financial-Reporting-Standards). It also uniting the capital market under one common reporting language and this would lead to produce high quality financial reporting across the world (ball,2006). This article has included 3 countries which in the low investor protection countries such as France, Germany and Sweden, in order to examine the effect of IFRS adoption on information quality. Besides, the three countries have different

Companies are required to report assets at either book value or fair value, depending on the situation.

The International Financial Reporting Standards, otherwise widely known as the IFRS, are a set of high quality financial reporting standards that are designed to be used globally by profit making enterprises. The continuous development of such international standards is an example of the international harmonization witnessed in the global financial sector over

In mainly everything, sports, class rooms, or work places you have a set of rules to go by. In the accounting world, you must also follow a set of rules and standards. The Generally Accepted Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS). Most countries around the world use IFRS while the United States uses GAAP. International Financial Reporting Standards and Generally Accepted Accounting Principles do things differently. Each country’s government sets which principles the accountants will use. There are also organizations that have been formed to help with all the confusion between countries. The organizations are called Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB). FASB is the organization that has been designed by the US government to establish GAAP in the United States. IASB is the international organization developing and promoting accounting standards to be used throughout the world.

According to current literature, the global movement to adopt International Financial Reporting Standards (IFRS) is the paramount financial reporting issue of the 21st century. More Than 100 countries in the world use IFRS as the basis of financial reporting.

Across the world, many businesses and markets have adopted the use of the International Financial Reporting Standards (IFRS). People and organizations in the business world are increasingly demanding conformity and this has necessitated the shift from the U.S Generally Accepted Accounting Standards to the IFRS. However, in the United States, there is still much reluctance to adopt this change and these has caused a lot of heated debate on whether the businesses and markets should conform to the rest of the world.

Investing in today’s rapidly emerging markets, one must be aware of the world’s two main accounting systems. The International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) are two essential accounting systems of the globe. Although several countries like the United States have their own accounting systems, most conform to one main one. The Security and Exchange Commission is looking to shift to the IFRS by the end of 2015. The GAAP and IFRS are primary accounting systems which share several aspects in common however they also differ in several ways which may impact the results.

International Financial Reporting Standard (IFRS 8) ‘Operating Segments’ is the first Standard of the International Accounting Standards Board (IASB) to be subject to a post-implementation review (PIR). IFRS 8 allows investors and other users of financial statements to see the company’s operations through the eyes of management (‘the management-perspective approach’) would enable investors to understand the risks that management face each day and to assess how well those risks are managed.

The Conceptual Framework Chapter on Qualitative Characteristics does not Include Prudence. Prudence has been Omitted because it is incompatible with Neutrality

International Accounting standards board (IASB) with its capable team of professionals issues International Financial Reporting Standards (IFRS) in order to deal with the problem of asymmetric information. The main purpose of standards is to provide information to the users as to the basis on which the accounts have been prepared to bring about uniformity in financial reporting and to ensure consistency in the data published by enterprises. The general idea is to harmonize accounting standards around the world, however there are contrasting views on the subject.

There is a very lengthy and detailed due process that must be followed when developing standards for IFRS. The main goal of the IFRS Foundation is “is to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based on clearly articulated principles.” The IFRS Foundation delegates the responsibility of developing standards to the International Accounting Standards Board (IASB). The IASB is continually striving to develop standards that offer the most accurate representation of an entity’s financial performance through its financial statements. These standards are intended to help lenders, investors,