International Financial Reporting - Essay Example

Extract of sample
International Financial Reporting

The notion “true and fair view” has originated from British accounting. There has numerous definition of “true and fair view” as there is no exact definition available of the term either by the standard setters or in law or even through court verdicts. The notion “true and fair view” has never been defined officially and as the principle is dynamic, it is neither desirable nor possible to give an exact definition for the concept. (Evans 2003:312)
However , in a French case that was decided in 1994 did mention about the phrase that termed it as a trust on adhering with accounting regulations, which does not automatically guarantee a true and fair view. IASB demands that financial reports should offer a true and fair view. US accounting regulation's demand that accounts should be presented as per generally accepted accounting principles. (Walton & Aerts 2006:69).
As per IFRS, the general intention of financial reports is to offer a just and fair presentation of the modification or changes in the financial performance and position of a business organisation or a company. The Conceptual Framework of IASB advocates that fair presentation could also be mentioned as offering a “true and fair view”. However, IAS 1.15 standard specifically states that publication of financial reports, which is based on the chief hypothesis that the application of IFRS with further or additional dissemination, if needed, is supposed to present financial reports mirroring a “fair presentation.” ...
Download paper

Summary

This paper “International Financial Reporting” will analyze the IAS in an exhaustive manner and will offer further insight into what is the true and fair view, the meaning of fair presentation and the discussion what constitute a faithful presentation of financial reports…
Download 1

Related Essays

The understanding financial data, and developing and making judgements on proposals against strategic objectives
In this study the researcher observed the role played by the finance and accounting function in the operation of a business. The author of the study recognized the following main functions:
...
15 pages (3765 words) Essay
Finance: Fair value accounting during the financial crisis
The impact of the overall situation of financial crisis had a severe reaction on the social institutions as well, leading unemployment rate to increase since a large number of finnacinal institutions had to face failures and ultimately, bankruptcy. As a result, a number of debates have been observed between investigators that the credit crunch was due to the misinterpretation of assets and hedging strategies in the shape of subprime loans and mortgage backed securities (Deff and Phelps). The major concern of the debaters was the implication of fair value accounting systems which led to the...
22 pages (5522 words) Research Paper
International Financial Reporting Standards (IFRS)
The policies of IFRS are more advanced and precise for meeting the changes in the new accounting and audit systems, so US is also moving towards IFRS. The US GAAP is actually concept based, whereas IFRS is based on principles. The methodology of these two frameworks and the accounting treatments are also different. In US GAAP, the research is mainly based on the literature but in case of IFRS, the rules are mainly based on reviews and patterns of facts. Table of Contents International Financial Reporting Standards (IFRS) 4 Generally Accepted Accounting Principles (GAAP) 5 Different between...
3 pages (753 words) Essay
Basic Senior Year Financial Questions
The cost of capital and the tax rate are 12% and 30% respectively. Required: The net present value (NPV) of the investment Solution: (a) Project appraisal $ ‘000’ Year 0 1 2 3 4 5 Inflows - 800 750 900 1,200 1,100 Outflows - (65) (80) (50) (55) (70) Depreciation - (280) (280) (280) (280) (280) Inflow before tax - 455 390 670 865 750 Less tax @ 30% - (136.5) (117) (201) (259.5) (225) + dep. Back - 280 280 280 280 280 Cash flows - 598.5 553 749 885.5 805 I0 (1,400) - - - - - (1,400 598.5 553 749 885.5 805 PVIF 12%n 1.000 0.893 0.797 0.712 0.636 0.567 P.V (1,400) 534.5 440.7 533.3 563.2 456.4...
6 pages (1506 words) Assignment
Financial Reporting Question & Answers
It eliminates all the alternatives associated with financial reporting. There are various benefits of standardization: Standardization of accounting rules enable multinational firms in developed nations to create significant employment opportunities in the job market. Professionals in accounting and other fields find it easy to relocate to other countries as a result of globalization for there is a common language in preparation of financial reports and accounts. For instance, countries such as Hungary and India forward their accounting duties to companies based in developed countries...
10 pages (2510 words) Assignment
'Corporate Governance: The Effect of Directors' Remuneration on the Fair Presentation of Financial Statements and Overall Or
10 Findings of the Study 11 Discussion and Conclusion 11 Recommendations 11 List of References 13 The Effect of Directors’ Remuneration on the Fair Presentation of Financial Statements and overall Organization’s Performance Introduction The concept of directors has been existent for a many years prior to the introduction of management sciences as a field of study. Due to the recent plethora of cases pertaining to fraudulent activities, negligence and mismanagement, we now witness the practice of corporate governance as a means to control the activities of management and directorial boards....
10 pages (2510 words) Essay
Financial statement presentation and disclosures
The financial deals and agreements will have a positive material effect on the company. They will be not presented in the balance sheet because they do not affect the borrowing capacity and these activities hide a certain amount of liability. Variable-Interest Entities: It is a concept which is introduced in the US Financial Accounting Standards in FIN 46 which refers to the entity (investee) in which the investors holds a certain amount of controlling interests which is not based on majority of the voting rights. It is almost synonymous to the concept of the special purpose entity. It is...
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!