StudentShare solutions
Triangle menu

Advanced Accounting Theory & Practice - Essay Example

Not dowloaded yet

Extract of sample
Advanced Accounting Theory & Practice

Since then, more and more countries are adopting IFRS.1 IASB sets down accounting standards for the accounting policies that a company under IFRS must follow. These accounting standards are in accordance with the requirements of Conceptual Framework which assist users of financial statements to take various financial decisions. IASB are in continuous effort to improve the accounting standards in order to prevent creative accounting practices by companies and help representing the true and fair view about the financial conditions and performance of the companies. IAS 1 which sets out guidelines regarding presentation of financial statements, its key features, changes in its recent revision by IASB, and finally criticism with regards to these changes, all have been covered in this study. Effects of changes in IAS 1 on Coca Cola Co. have also been studied. Key Features of IAS 1 Objective IAS 1 sets the guidelines to be followed in the presentation of financial statements made by an organisation. The presentation is made for the purpose of comparability with the company’s financial statements related to preceding periods. It also ensures that the financial statements of the company can be compared with other business entities as well. IAS 1 includes comprehensive requirements about how the financial statements are presented, rules about what would be its structure and the minimum requirements about what its contents will include....
cial statements are presented, rules about what would be its structure and the minimum requirements about what its contents will include.2 Scope IAS 1 is applicable to all the financial statements which are made for general purposes and is in accordance with International Financial Reporting Standards (IFRS). Financial statements used for general purposes are prepared with the intention that it would be required by the person who do not require financial reports to be used by them to cater to some particular information requirement.3 Financial Statements and its Components According to IAS 1, financial statements comprises of the following five components: 1. Balance Sheet: It is a statement which depicts the financial position of a business entity at the end of the period. 2. Income Statement: It is a statement explaining the comprehensive income of a business entity at the end of the period. 3. Statement of Shareholders’ Equity: It is a statement showing the increase or decrease in equity of the business entity for the period. 4. Cash Flow Statement: It is a statement showing the cash flows of the business entity for the noted period. 5. Notes: It comprises of the accounting policies followed by the business entity in a summarised form. It also includes other explanatory notes of the business entity.4 IAS 1 does not require a business entity to use the same titles of the financial statements as stated above. They can use other titles as well. If we look at the annual reports of Coca Cola Co. for the year ending on December 31, 2011, we can find that all these components of financial statements are mentioned. Along with these there are other reports prepared by Coca Cola like, Report of Management, Report of Independent Registered Public Accounting Firm, etc. which ...Show more

Summary

Year 2001, was marked as the year of establishment of International Accounting Standards Board (IASB). It was established with the idea to develop and implement International Financial Reporting Standards (IFRS). …
Author : joankassulke
Advanced Accounting Theory & Practice essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Advanced Accounting Theory & Practice"
with a personal 20% discount.
Grab the best paper

Related Essays

Advanced Accounting Theory & Practice
Advanced Accounting Theory & Practice Introduction International Accounting Standard (IAS) 1 provides a framework for the Preparation and Presentation of Financial Statements. This accounting standard is comprised of information necessary for preparing and presenting the financial statements.The basic purpose of this standard is to enable different users to make effective economic decisions with the use of financial and non-financial information.
10 pages (2500 words) Essay
Adv. Accounting Theory & Practice
The firms in different industries have a conflicting nature in terms of their responsibilities towards society.Their scope of responsibilities clearly depends upon the area in which they are doing business, for example the extracting businesses are crucial to the focus of environment regulatory authorities.
4 pages (1000 words) Essay
Advanced financial accounting
his part will describes the alternative methods by which assets and liabilities could be measured, and critically assesses the performance of each method against the Qualitative Characteristics of financial information described in the ASB’s Statement of Principles (the
16 pages (4000 words) Essay
Accounting theory practice
As per Ernst & Young (September 2007)1, ‘The main revision to IAS 1 arises from the IASB’s consideration of the US Standard SFAS 130 Reporting Comprehensive Income. The IASB has also taken
8 pages (2000 words) Essay
INTERNATIONAL FINANCIAL ACCOUNTING AND THEORY
stakeholders in the society, which involves collective contributions by individuals, is the focal point of financial accounting, social and environmental theory. The primary issue concerning social and environmental theory is the way the society determines developments, goals,
8 pages (2000 words) Essay
THE PROPRIETARY VS THE ENTITY THEORY How has your selected accounting theory contributed to the development of existing accounting practice
The discussion also places these theories within the current accounting frameworks which exist in practice in the UK. Two of the concepts that are widely held and considered
8 pages (2000 words) Essay
Advanced Accounting Theory & Practice
By providing the basic structure for each type of financial statements, the standard has become highly essential for lenders, investors, shareholders and
8 pages (2000 words) Essay
Advanced Accounting Theory and Practice
air value accounting prompted the Financial Accounting Standards Board (FASB) to issue a new standard, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS157). This standard provides comprehensive guidance to help firms in estimating their fair
3 pages (750 words) Essay
Accounting Theory and Practice
It states the major benefits of harmonization of accounting standards in international trading activities. It also states the problems that the harmonization of accounting standards would solve in case it is successfully implemented. Additionally,
10 pages (2500 words) Essay
Advanced Accounting Theory
GAAPs derive their content and authority from all the sources concerned with the establishment of accounting standards within a particular jurisdiction. The concept of the jurisdiction is
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