The International Accounting Standards Board

Boundless (2015) said that a Conceptual Framework can be defined as a system of concepts and purposes that guide to the creation of a constant set of regulations and standards. Especially in accounting, the rule and standards set by the nature, function and limit of financial accounting and financial statements. IFRS(2015) stated that the purpose of the Conceptual framework is to enhance financial reporting and objective of accounting by offering a more accomplish, clear and updated set of concepts or guidelines. In Conceptual Framework, it will form a basis for define how transactions should be calculated (historical value or market value) and reported in financial report like how they are presented or communicated to internal or external users. To carry out this, the International Accounting Standards Board (IASB) is establishing on the currently existing Conceptual Framework updating it, enhancing it and padding it in the disparity instead of essentially reconsidering all respects of the Conceptual Framework.

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.

Almost 10 years ago on July 13, 2006, FASB, the Financial Accounting Standards Board issued FIN 48 the Accounting for Uncertainty in Income Taxes. FIN 48 is also known as Interpretation No. 48 that became effective during December 2006 fiscal year. It explains the uncertain tax positions regarding the calculations and disclosures of reserves in the Statement No. 109 of the FASB. The purpose of the FASB Interpretation No. 109, also referred to as, FIN 48, clarifies uncertainty in income taxes recognized by FASB Statement No. 109. The Statement does not recognize a threshold or measures the contribution for the financial statements. Accounting for income taxes (No. 109) is used for business enterprises. Also, it is applicable to

The conceptual framework was established by the Financial Accounting Standards Board (FASB) and is used to help define the boundaries of accounting. It gives definitions of key terms and establishes consistent standards by which fundamental issues are defined. This makes it easier to facilitate discussion and leads to greater efficiency in making accounting judgments.

Conceptual framework is a theory of accounting prepared by a standard setting body against which practical problems can be tested objectively. In addition the business dictionary states that conceptual framework is a theoretical structure of assumptions, principles and rules that hold together the ideas compromising a broad concept. Other sources state that a conceptual framework can be viewed as a set of interrelated objectives and theoretical principles, which forms a reference for the underlying discipline. On the other hand, financial reporting is the process of producing statements that disclose an organization's financial status to management, investors and the government. Therefore, in financial reporting the framework provides information

On February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (Update) on Leases (Topic 842) to communicate changes to the FASB Codification. In this Update it defines the term, Leases and also explains why FASB is issuing this Update, who will be affected by the amendments, how do the main provision differ from current Generally Accepted Accounting Principal (GAAP) and why are they an improvement, as well as explaining the transition and when the amendment will be effective.

Earnings per share is introduced by the Financial Accounting Standards Board as the functionality used to calculate an institutions’ earnings for the year-end financial statements. The institutions can be made of up a simple or complex capital structure. It must be calculated on a constant basis in order for reports to remain consistent. FASB provides a formula of “dividing income available to common stockholders by the weighted average number of common shares outstanding during the period” (FASB 2009), to measure each share of stock earned. The net income of an institution simply comes from their income statement. The weighted average of common shares outstanding references on average how much was stock was outstanding during the entire year, since it fluctuated throughout the year. An issue that can be faced when determining earnings per share is the concept of share buybacks. This concept discusses cash that is not actually being invested but gives off the impression of good performance, when in all actuality, nothing had been generated. Investors and creditors focus a lot of attention to the findings of earnings per share as it sparks monetary interests. Ultimately, institutions strive for higher rates of earnings per share to demonstrate the institution’s performance and the likelihood of future success.

The financial statements are influenced by many different regulations, such as the Domestic legislation, the International legislation and rules, and for some companies that are listed, the stock exchange (Appendix 2). In an attempt to harmonise some of the rules and regulations the Conceptual Framework has been created, in

Regulators and Accounting Standards Board have long struggled with the developing comprehensive reporting standards that will improve transparency, reliability, completeness, and comparability of the financial statements prepared by the company. The need to promote investor confidence in the market makes it important to improve the financial reporting standards so that investors are able to obtain accurate, reliable and complete information in order to make informed judgments. This paper reviews recent attempts by SEC and FASB to improve the reporting of off-balance sheet transactions, variable interest entity, and non-controlling interest.

I appreciate the chance to respond to the Financial Accounting Standards Board’s invitation to comment on the Proposed Accounting Standards Update-Property, Plant, and Equipment (Topic 360): Changes in Measurement of PPE on the Balance Sheet and Income Statement.

The accounting profession worldwide has longed for the harmonisation of the various accounting codes practised by different countries. A set of international standards has been developed with help from the US, Britain, Ireland and the EU in general. International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the

According to the conceptual frameworks used by both the Financial Accounting Standards Board and the International Financial Standards Board, one of the main reasons why companies prepare financial reports is to allow users of financial statements make decisions regarding the provision of resources to the firm (Financial Accounting Standards Board, 2010; International Financial Standards Board, 2010). These decisions relate to the buy, sell, or hold moves that investors make based on the information received from the company. Both conceptual frameworks also include credit investors as being interested in the company’s performance as reflected in the financial reports. Apart from proving information to investors on the company’s projected cash flows, financial statements also play the important role in enhancing stewardship responsibilities that rest with managers. These requirements have connotations of financial statements being relevant to the targeted audience. In addition, financial statements are expected to be reliable from the audience’s viewpoint.

The answer to the question about the nature and the function of the company financial report has been attempted to be answered over the years. According to Alexander (2011), the conceptual framework for financial reporting (Conceptual framework) is defined as a scheme of systematic thinking which provide not only the definition but also the solution to accounting issues. Meanwhile, it is seen as a tool of help standard setter (IASB) to develop and revise reporting standards. It is a reference to prevent standard setter from confusion like fire fighting while they face accounting questions, for example if some item can be defined as asset. In fact, the status of the conceptual framework is higher than the specific standard and more precisely, it is seen as a guidance for

Users of accounting information, who do not have day to day access to the record of the business, rely on the integrity and judgment of management to provide suitable information of a high quality. All financial statements are essentially historical documents they shows the financial performance of the company. Most users of financial statements are concerned about what will happen in the future and decision making upon the present or past financial records of the company. Stockholders are concerned in future earnings and dividends. Creditors are concerned with the company’s future ability to repay its debts. Managers are concerned with the company’s ability to finance future expansions. Despite the fact that financial statements are

Lease is one of the most important measures in providing an overall financial obligations of a company. It’s a way of gaining access to assets, obtaining finance and reducing risk of assets ownership (IFRS Exposure Draft Leases 2013, pp. 5). However, existing lease recognition under standard AASB 117 is limited and inconsistent, it does not provide a clear picture to the existing financial statement users.