High Profile corporate collapses in the last two decades have been attributed to laxities in the regulatory framework of financi

High Profile corporate collapses in the last two decades have been attributed to laxities in the regulatory framework of financi Assignment example
Undergraduate
Assignment
Finance & Accounting
Pages 10 (2510 words)
Download 0
Financial reporting Table of Contents Table of Contents 2 Introduction 3 Arguments in favour of financial reporting regulation 4 Arguments against regulation of financial reporting 8 Conclusion 11 References 12 Introduction One of the major events in the history of accounting is the implementation of IFRS across the European Union from January 2005…

Introduction

In June 2002, the EU has adopted a regulation to prepare their financial statements in agreement with IFRS or IAS which is required to be followed by all listed European Union companies in the regulated markets. Companies are open to select their national reporting standards and follow Generally Accepted Accounting Principles (GAAP) for associate and subsidiary companies. The regulation is applicable only on the consolidated accounts. The regulation came into consideration from the year 2005 (PwC, 2005). With an aim to develop common accounting standards in 1973, nine countries including UK formed International Accounting Standards Committee (IASC). Over hundred countries have it’s become members. Countries, especially bigger economies, are bringing in their own perspectives and adapting to this accounting standards. In coming up with common acceptable accounting standards IASC had to deal with accounting conflictions (Accounting Standards Board, 1999). IASC has not been successful in resolving all the conflicts with all member countries as it is nearly an impossible task to fully satisfy more than hundred accounting bodies from across the world. International Financial Reporting Standards (IFRS) or International Accounting Standards (IAS) is applicable to more than 90 countries. ...
Download paper
Not exactly what you need?

Related papers

Discuss the banking regulatory and market framework in UK, address the strengths, weaknesses, opportunities and threats
In 2009, collections for insurance premiums alone totalled nearly ?200 billion. The UK market for equities garnered 17% share of the global market in 2009, ranking only behind New York. Likewise, the fund management industry ranks among the world’s largest, managing some ?4.1 trillion for the year 2009. All in all, the financial services sector turned in the largest volume of corporate taxes for…
Conceptual Framework: Financial Reporting
The Conceptual Framework for Financial Accounting Accounting is at the core of business finance, and with the dynamic developments of the global economics, this subject has also become a key area of research and analysis. In this situation, even the most basic accounting concepts like assets, liabilities, revenue, debt, etc. are of critical importance. Terms based on the accounting concepts need…
Integrated Reporting Framework
However, it was not until 1999 that the UK developed a framework which it described as – ‘Statement of Principles for Financial Reporting’. Both frameworks were based on work done in US, Canada and some other countries (Dyson 2007). Before that time the bases for financial reporting were various rules and custom and standards which were mainly ‘fire-fighting exercises’ (Dyson 200?). The…
Financial crisis regulatory
Robert Shiller examined the controversy of the global economic crisis and its management and raised prudent arguments about the practice. The economist argues that democratization of finance provides an ideal strategy of managing the contemporary and future economic crisis. Some analysts support Shiller’s perspective while others have criticized his ideology. Interestingly, few economists argue…
Regulatory and Compliance Issues
This might include insurance policies (Corporations Act 2001, Section 763C). Non-cash payments refers generally to alternatives to cash payments such as cheques, credit cards, debit cards, travellers cheques and so on (Corporations Act 2001, Section 763D). B. Plain English Definition A plain English definition of financial advice is guidance and recommendations from an individual who is qualified…
Compare and cotrast the accounting conceptual framework and the accounting regulatory framework in the Uk?
The accounting conceptual framework in the UK One of the elements of the accounting conceptual framework, as applicable in the United Kingdom, relates to goal of financial statements that is to offer information on “financial position, performance and changes in financial position” of an enterprise (Rolfe 2006, p. 123). The subject information must however be significant to the entity’s…
Conceptual Framework
The IASB want to ensure that equity has first priority to common stock insolvency or liquidation. This is because in business, liability is the duty of an entity that emerge from past or previous events or transactions, the settlement that may lead to the use or transfer of assets, service provision or any other yielding profits or benefits in the future. It is also significant to note that…