Uniform accounting standards produce uniform financial reporting. Discuss and evaluate the above statement in the context of the International Financial Reporting Standards (IFRS)
Another problem associated with the IFRS, in relation to uniform financial reporting, is that there are many methods one can use to present financial information. For example under the IFRS companies can employ one of three cost formulas when reporting inventory expenses, specific identification, first in first out, or weighed average cost. Depending on what cost method is used inventory will be reported differently. Firms in many cases take advantage of this flexibility by employing
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The Evolution of Indian Accounting Standards: Its History and Current Status with Regard to International Financial Reporting Standards
5318 Words | 22 Pagestransparency in the financial reporting. This transparency is rapidly occurring in India as the country catapults into becoming a major economic power propelled on by the combined forces of the technological revolution, the opening up of its borders and the privatization of many infrastructure industries such as transportation and communication. This paper addresses the adoption and applicability of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), issued by…
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Advantages and barriers of harmonizing International Financial Reporting Standards throughout the world
1065 Words | 5 Pagesdevelopment in international trade and capital flows that has occurred over the previous two decades has increased the desire to harmonise accounting standards across the globe. The appeal of international accounting harmonization has been extensively discussed. Numerous academics Ali, J M (2005), Adhikari and Tondkar (1992), Saudagaran (1997) argue that adopting International Financial Reporing Standards (IFRS) would bring great benefits to society, such as comparability of statements between countries…
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International Financial Reporting Standards
3212 Words | 13 PagesQuestion 3: Frieda, an accounting student, states: “Strategy analysis seems to be an unnecessary detour in doing financial statement analysis. Why can’t we just get straight to the accounting issues? “Explain to Frieda why she might be wrong. Without strategy analysis, it is impossible to identify what drive profits and what are key risks. Moreover, assessing firm’s current performance and doing realistic forecasts of future performance are also directly linked with firm’s strategy. Three important…
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Uniform accounting standards produce uniform financial reporting. Discuss and evaluate the above statement in the context of the International Financial Reporting Standards (IFRS)
1064 Words | 5 Pageswhat the phrases “accounting standards” and “financial reporting” refer to. Accounting standards refer to the accounting methods used in an accounting system like the IFRS. Financial reporting refers to the representation of financial information, in order to be uniform the financial reporting must be based on a fixed set of rules, invole complete objectivity and no bias. The IFRS (International financial reporting standards) has indeed helped the uniformity of financial reporting. However, in some…
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How International Financial Reporting Standards Affect The Quality Of Canadian Accounting Information
1856 Words | 8 PagesHow would International Financial Reporting Standards affect the quality of Canadian accounting information? INTRODUCTION Globalization has a great impact on today’s economy. The differences of accounting regulations and practices in various countries have become a noteworthy obstacle to globalization and economic development. International Financial Reporting Standards (IFRS) mitigates global business barriers. In order to adapt to the increasingly global business environment, public companies…
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The Convergence of Two Accounting Systems and the International Financial Reporting Standards
1318 Words | 5 PagesI. Introduction The convergence of two accounting systems, the US GAAP and International Financial Reporting Standards, is not a new concept. For many years, the primordial idea of convergence started in the late 1950’s in response to post World War II economic integration and related increases in cross-border capital flows. Initially, the term used was “Harmonization until the early 1990’s the politically correct term is “Convergence”. It has been in deliberation to whether all countries…
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Financial Statements and Accounting Standards
1216 Words | 5 Pagesholders | | directors | | auditors | | | 6. The main functions of the Financial Reporting Council include: I. overseeing the process for the setting of accounting standards of the AASB II. determining the AASB’s broad strategic direction III. monitoring and reviewing the level of funding for the AASB IV. directing the AASB in relation to the development or making of a particular standard V. the power to veto a standard recommended by the AASB. | I, II, III and V only | | I, II, and III…
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International Financial Reporting Standards and Accounting Principles
2762 Words | 12 Pages21. General-purpose financial statements are the product of a. financial accounting. b. managerial accounting. c. both financial and managerial accounting. d. neither financial nor managerial accounting. 22. Users of financial reports include all of the following except a. creditors. b. government agencies. c. unions. d. All of these are users. 23. The financial statements most frequently provided include all of the following except…
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Negative Effects of Adoption of International Financial Reporting Standards
3627 Words | 15 PagesAbstract The international accounting standards board (IASB) has replaced the international accounting standards committee (IASC) in 2001 and at the same time many standards of IFRS come from the International Accounting Standards which issued by IASC. After the new standards announce, the uptrend of globalisation has pushed more and more countries on their ways of adopting the international accounting standards. The drive for IASB is a British initiative and London is the headquarters for the IASB…
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International Financial Reporting Standards
1036 Words | 4 PagesAbercrombie & Fitch uses generally accepted accounting principles (GAAP) as the basis for the production of its financial statements. In contrast, Hennes & Mauritz (H&M) uses international financial report standards (IFRS). H&M also utilizes Swedish GAAP. For its annual report, there is no indication of what standard is used, and there are no official financial statements. H&M does not note what auditing standards it uses in its annual report. By contrast, the ANF Form 10-K notes that the company's…
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