The Role Of Conceptual Framework And Accounting Standards Essay

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

The purpose of this research report is to understand of two important concepts from the Conceptual Framework for Financial Reporting----the objective of general purpose financial reporting and qualitative characteristics of useful financial information. In this report, Myer Holdings Ltd is as an example to describe these two concepts. This report includes the analysis on whether the disclosure of PPE from Myer Holdings Ltd meets the requirements of AASB 116, especially the requirements of objective

Regulatory Authorities: The financial statement help accounting authorities to ensure that the company's disclosure of accounting information is in accord with the rules and regulations set in order to protect the interests of the stakeholders who rely on such information in forming their decisions.

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

This report objects to succinctly compare between the disclosure of PP&E as per AASB116 and Western area’s disclosure on the PP&E of financial statement. It firstly outlines the objective of the general purpose financial reporting of company and its relevance to the qualitative characteristics such as relevant, faithful representation, timeliness, verifiability, comparability and understandability. It will then go on investigates and analyze Western area’s current general purpose financial reporting and its future advices. In particular, this report will discuss Western area’s current disposal of current assets. Although there may be a lack of understanding regarding the disposal of the current assets, it is critically important for Western areas of disclosure of GPFR with qualitative characteristics of users and our economic future as it acts as a AASB116 for them to learn about the company’s philosophies and make important users’ decision.

IFRS and GAAP both insist on information being faithfully represented and relevant. Faithfully represented data consistently adheres to proper trade standards and is conservatively reported. Any financial information that is deemed important to the users of an organization’s financial statement is considered relevant and should always be included. There are many similarities between the two

The Financial Accounting Standards Board (FASB) is the body in the U.S. that sets the accounting standards. These standards issued are referred to as the Generally Accepted Accounting Principles. FASB has an Accounting Standards Codification (ASC), which is a source of seeing nongovernmental US GAAP. FASB provides a Codification research system website, which can be utilized by accountants, lawyers, and students as a means to view content, perform research, and submit feedback. The goal of the Codification was to give accurate up-to-date standard-setting activity in one spot while being user-friendly by codifying all US GAAP. According to the FASB official website, “…the Codification is expected to: 1. Reduce the amount of time and effort required to solve an accounting research issue 2. Mitigate the risk of noncompliance through improved usability of the literature 3. Provide accurate information with real-time updates as Accounting Standards Updates are released 4. Assist the FASB with the research and convergence efforts (About the Codification v4.10 https://asc.fasb.org/help&cid=1176163588636).”

On February 26, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which revised the standards on leasing. The intent for this revision was to improve how leases are being reported on the financial statements. The consensus is that the classification tests in current use for making this determination fail to provide a faithful and accurate representation for leasing transactions in general. In 2005, the U.S. Securities and Exchange Commission had also made recommendations which indicated this need for change in regard to how leases were being reported. Overall, it is believed that this change would ensure greater transparency in the financial statements concerning these type transactions.

Nevertheless, The following statement assumes that “Every UK company registered under the Companies Act is required to prepare a set of accounts that give a true and fair view of its profit or loss for the year and of its state of affairs at the yearend (Riley J: 2012) ”. Therefore, efficient financial reports are seen to be mandatory for all firms, whether it’s at a national level or even privately owned.

The four basic financial statements including the balance sheet, income statement, statement of retained earnings, and cash flow statement together form the foundation of financial reporting for a business. The intent of this paper is to define the purpose of these four statements, how these statements are useful for internal managers and employees, and how they are useful for those external to a company incouding investors and creditors.

In accounting, there is much to be learned, about the financial aspects of a business. In the past five weeks, this writer has learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is significantly important to managers, owners, employees, and investors. Managers of a business can take and deduce financial data from the income statement which details monthly earnings as well as the company’s liabilities and equity position, and is also used to project future yearly budgets.

Accounting regulation has an apparent importance in accounting for the good of the public. The

Business firms are under constant scrutiny by consumers, shareholders and even their own board of directors. Keeping track of finances is imperative, not only to please shareholders, but stay in business. There are a wide variety of statements that will enable a firm to keep track of

In the 6th edition, the financial statement samples of well-known companies give accurate information as to how a balance sheet is written. Because the statements were produced by a legitimate accounting entities, I believe the source was very useful for students who had to apply their accounting skills and knowledge onto a test or when preparing real financial statements for firms. There were only a few Canadian companies that adopted the International Financial Reporting Standards (IFRS) from the previous version of the book. The sources used were international financial statements of non-Canadian companies, which could marginalize Canadian readers since it was difficult for them to relate accounting practices to the latest international accounting system. If we were to publish the new edition, I recommend we include financial statements of Canadian companies that follow the IFRS, so readers can view how these companies adopted the new standard. The opportunity of using legal samples encourages more universities and academic institutions to use this book because the financial statements will be up-to-date and verifiable. With this minor addition, the new textbook will be modernized and further

To: Mrs Maria Long, Manager Accounts Department, Cleanspace Ltd From: Date: Subject: Accounting Theory Team No. 29 24 March 2011 Report on Financial Reporting and Disclosure Practices of France