Critical appraisal of the International Accounting Standard

Critical appraisal of the International Accounting Standard Dissertation example
Masters
Dissertation
Finance & Accounting
Pages 42 (10542 words)
Download 10
The dissertation under consideration comprises 5 chapters. The first chapter would present a brief overview of the International Accounting Standard, as well as discuss the standard that the researcher chose, which is IAS 40 – Investment Property…

Introduction

Critical appraisal of the International Accounting Standard

The utilization and application of the guidelines established under International Accounting Standards (IAS) is geared towards the process of evaluating the factors under the category of accounting amounts, as a means to identify whether the process of reporting under IAS can be attributed to an accounting quality that is above par, while investing a lower expense in terms of capital.

The objective of this study is to focus on the fair value accounting of IAS 40 on decision usefulness, concerning the aspects of value relevance and information asymmetry. The researcher aims to do a comparison between a firm that makes use of IAS 40 and one that doesn't, focusing on the factor of Fair Value Accounting within the context of Investment Property.

The comparison focusing on the latter group is a means to identify whether there would be an increase in the degree of accounting quality that a firm has after utilizing and applying IAS 40 in their policies and processes. In that light, the researcher aims to determine the prospect of improvement of a firm's accounting quality and financial reporting with the use of International Accounting Standards on Investment Property.

One of the key objectives of the International Accounting Standards Board (IASB) is to formulate a singular guideline that would establish accounting standards of high quality that must be comprehensible, as well as practical and practicable for the sake of public interest. ...
Download paper
Not exactly what you need?

Related papers

Finance and accounting assignment: Advanced financial reporting and regulation
Management would often resort to extreme earnings’ management techniques in order to inflate sales and earnings so that meet the analysts’ earnings forecasts (Kumar, 2008). One way of inflating sales and earnings is through the use of window dressing marketing strategy. Department stores normally resort to window dressing marketing strategies. Window dressing is placing top selling products on…
IAS 16 and IAS 40(International Accounting Standards)
How will Gale plc determine whether the building is an investment property or not? As per the presented information, it is hard to determine whether the building is an investment property. This is due to the fact that, according to the definition presented by IAS 40 in iasplus.com website, an investment property refers to such property that includes buildings and land or part of such that is…
The Relevant International Accounting Standard (IASB)
Contingent assets and contingent liabilities are not recognized but disclosed in the financial statement of the company. The main focus and objective of the standard is that the entity recognizes provision in its balance sheet with is the best estimate of the expenditure to settle an obligation at the end of its financial year. This estimate is the amount of cash outflow that the entity is likely…
Financial reporting
IAS 37 was issued in order to deal with the subjective area of provision and to prevent the use of ‘big bath provisioning’ and the practice of profit smoothing. IAS 37 requires that (in accordance with the definition of a liability) a provision should be made where the matter gives rise to a constructive or legal obligation and where there is a probability that there will be an outflow of…
International Accounting Standard Individual Assignement
Wanting to conduct business, MIBW4A identified an economical and sustainable method of providing safe and treated drinking water. "Most other efforts to bring clean water to the underserved citizens had relied on volunteerism and had ultimately failed. Those efforts were not market-based and proved to be unsustainable" Kaputt said. MIBW4A established a strong and mutually profitable partnership…
Hedge accounting under IAS 39 and IFRS 9 - A critical comparison
IFRS 9 is still in its development phase and such studies help in changing accounting methods from a rules-focused approach to more of a principle- based view; this is done to encourage more personalities and institutions to apply hedging as it has benefits associated with good pricing and effective financial reporting. All the selected 32 hedge fund managers participated in the survey and the…
Issues in accounting for R&D investment - a perspective from the pharmaceutical industry
The companies operating in the pharmaceutical industry spend millions of dollars each year in the research and development expenditure so that they are able to devise new methods and medicine that are able to cure and provide sustenance to the human body from deadly diseases. From the financial perspective, the research and development expenditure forms an integral part of the financial statements…