StudentShare solutions
Triangle menu

A judgmental international classification of financial reporting Practices - Essay Example

Not dowloaded yet

Extract of sample
A judgmental international classification of financial reporting Practices

Without conceptual framework there have been many issues and problems that have emerged with the passage of time and different people have different opinions on solving the problem (Hines, 1988). Therefore there has been a need for some guiding principles or some kind of structure on the basis of which different decisions can be taken and reporting of financial statements could become reliable and consistent (Zeff, 1972). With regard to this, conceptual framework is helpful because it provides a guideline and a foundation of anything and it can be referred to by people (Nobes, 2006).
Conceptual framework issued by FASB
The following image gives an overview of the conceptual framework issued by FASB. In an ideal world accounting reports that are developed using the suggested conceptual framework would be more useful than other accounting reports which are prepared without using of conceptual framework. ...
Considering its importance, there are several objectives of accounting department and these objectives are described below: Preparing Reliable and Consistent Financial Statements Accounting has a major role to play in any organisation (Amaratunga , & Baldry, 2003) because accountants prepare financial statements and records the financial transactions of the company (McCarthy, 1982). These reports and financial statements reflect the proper financial information which is helpful for the stakeholders of the company including investors, employees, shareholders, suppliers, government agencies, customers and potential customers as well as competitors (Ball, & Brown, 1968). The main objective of accounting is to provide information which is useful for the users of financial statements like investors, creditors, and other stakeholders (Chua, 1986). Therefore it is integral that the information provided by the organisation is useful, accurate, authentic, consistent and reliable. Inaccurate information can mislead the users of the financial statements and it could also distort the decisions taken by the management on the basis of financial statements therefore it is important for the organisation to prepare financial statements that follow the principles accepted by others as well (Hogarth, 1993). Thus, a conceptual framework would be required which the accountant can use as a guideline while preparing financial statements to make the financial information consistent and reliable. Keeping Records of all the transactions in a systematic way The other major objective of accounting is to keep records of all the transactions that occur in day to day routine processes in a systematic way (Abdel-Khalik, & Ajinka, 1983) ...Show more

Summary

For many years different organisations, agencies and financial analysts have worked on developing their own conceptual framework however there has been no one common conceptual framework which has been accepted by everyone (Kaplan, & Atkinson, 1998). …
Author : brandyn16
A judgmental international classification of financial reporting Practices essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"A judgmental international classification of financial reporting Practices"
with a personal 20% discount.
Grab the best paper

Related Essays

International Financial Reporting
The author provides examples of company’s financial reports with the constructive information that should offer a fair, faithful presentation and should give a ‘true and fair view” of the financial position of business so that the stakeholders can take informed decision on such financial information.
22 pages (5500 words) Essay
International Financial Reporting
The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation. (IAS 1.15) Introduction The year of 2008 was not a good year for the financial world. A harsh and sever wave of financial crisis was so powerful that it did not leave any option for financial companies but to shrink their payrolls, reduce their human capital, reduce work force, shut down their branches, franchises.
12 pages (3000 words) Essay
International Financial Reporting
It clearly sets out the presentation, guidelines with regard to structure and the minimum requirements of financial statements. More precisely, these are expounded on under IAS 1.1. IAS 1.1 states that a complete financial statements’ set has to contain statement of equity changes in a given period, cash flow statement for the period, financial position statement in the period’s balance sheet, comprehensive income statement and the notes which include a summary of explanatory notes and the accounting policies.
12 pages (3000 words) Essay
International financial reporting
According to the framework, the objective of financial statement is to provide information in regards to the financial position, performance and changes in financial position of an entity which are is useful to a wide range of users in making economic decision.
11 pages (2750 words) Essay
International Financial Reporting
To date, a total of 41 IAS have been released; however, 10 have been superseded by other IAS or IFRS (International Financial Reporting Standards); and 2 have been withdrawn by International Accounting Standards Board - IASB (IAS Plus, 2009). In addition to a description of each standard, this paper briefly discusses how the potential users of financial statement can benefit from the use of these standards.
13 pages (3250 words) Essay
INTERNATIONAL FINANCIAL REPORTING
Had there been no framework, accounting standards would adopt the easier solution for a particular issue. A solution which is coherent with an interconnected theory of accounting would never be the choice. The Conceptual Framework
11 pages (2750 words) Essay
INTERNATIONAL FINANCIAL REPORTING
Moreover, major implications of adopting IFRS for financial reporting have been discussed. To some extent, the argument of enhanced quality of financial reporting
12 pages (3000 words) Essay
International Financial Reporting
More precisely, these are expounded on under IAS 1.1. IAS 1.1 states that a complete financial statements’ set has to contain statement of equity
12 pages (3000 words) Essay
International Financial Reporting
The IASB-international Accounting standards Board issued a system for the arrangement and presentation of money related explanations.
11 pages (2750 words) Essay
International Financial Reporting Standards
This is unlike this is unlike the other existing financial reporting frameworks which, on the contrary, set rules, and regulations with
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation