Policy Choices under IFRS in UK and German Context - Essay Example

Only on StudentShare

Extract of sample
Policy Choices under IFRS in UK and German Context

The present research has identified that after the mandatory adoption of IFRS by the public listed companies in 2005-06 especially in the Euro zone, the companies develop their financial statements in accordance with the guideline provided by the IFRS. IFRS, however, allows different policy choices for the companies to make. For example, in measuring the inventory, IFRS has provided a policy choice of measuring inventory amount on the basis of either FIFO method or on weighted average method. Similarly, some other choices have also been framed by IFRS to the companies, like they can value their property, plant and equipment either on cost model or revaluation model etc. Nobes studied this area of research and outlined 16 policy choices that are mostly available to the companies. The four choices have been eliminated from this analysis as some of them are industry specific and some of them are commonly used by every company no matter in which industry they operate. The rest of twelve policy choices do have some issues with them as some organizations do not disclose their policies at times. The most common examples are of “investment property” and “inventory” such that in relation to investment property, organizations do not disclose whether these investment properties are valued at cost or fair value, and in case of inventories, organizations at times do not disclose whether the inventories are valued at FIFO method or weighted average method. ...Show more

Summary

This essay explores the Policy Choices under IFRS in UK and German Context. The paper demonstrates the table which reflects the 6 big corporations of UK and German which represents their policy choices of IFRS. It also shows a comparison between the policy choices of UK companies and the German companies…
Author : adelemueller
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Policy Choices under IFRS in UK and German Context"
with a personal 20% discount.
Find out more

Related Essays

The Impact of IFRS for SMEs on UK companies
However, no matter how small or large a company is, it still requires financial reporting activity due to the fact that everything about in business should be properly accounted and requires higher accounting information (Iatridis, 2010). Thus, financial reporting should be performed by publicly accountable entities, non-publicly accountable entities and small companies.
4 pages (1000 words) Essay
Financial Reporting Research Project : Intangible Assets under U.S. GAAP and IFRS
Accordingly, an intangible asset is an identifiable non-monetary asset having no physical substance (IAS 38.8) that is distinguishable from goodwill (IAS 38.11). The goodwill is either derived from any contractual or other legal rights and the rights attached to the goodwill are separable and transferable.
6 pages (1500 words) Research Paper
International Financial Reporting Standards (IFRS)
The US GAAP, (Generally accepted accounting principles) is another framework which is followed in many countries. This was created before IFRS. Though the purpose of creating these two frameworks is same but there are many differences in the policies and rules in both of the framework.
3 pages (750 words) Essay
IFRS
Since 2012 we have adopted those IFRS which were effective January 2009. However, there are no plans to at this time to adopt IFRS fully and some of the standards that were effective in 2009 have since been revised and would therefore increase the gap between our revised standard (for the process of convergence) and the revised IFRSs.
4 pages (1000 words) Essay
Hedge accounting under IAS 39 and IFRS 9 - A critical comparison
The first section of the study is aimed to recognize the differences between IAS 39 and IFRS 9, implications of changes, current issues and regulation and future development for IFRS 9. This section demonstrates the relevance of the study identifies specific research questions and describes aims and objectives for this investigation.
16 pages (4000 words) Research Proposal
The need of IFRS and the Problem of adopting it for UK Small and Medium Enterprises
When the whole system is in harmony and in synchronization, the small change gets distributed easily and rapidly. The accounting standards for the Small and Medium Scale Enterprises (SME) are going through such a phase of standardisation. Instead of following the GAAP or the full IFRS standards, the UK Small and Medium Scale Enterprises are adopting new IFRS standards designed and customised for SMEs only.
24 pages (6000 words) Dissertation
Portfolio Management and Stocks
On the other hand, finance is the name of utilizing the money and funds of the company at a place from where the likelihood of earning would be on a higher scale (Frank K. Reilly 2011). In a broad nutshell, both of these things are quite effective and important to watch.
10 pages (2500 words) Assignment
Hedge accounting under IAS 39 and IFRS 9 - A critical comparison
Assurances 37 Summary 39 CHAPTER 4: DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF THE RESULTS 40 Introduction 40 Quantitative data analysis 40 Structured questionnaires were employed in the study to establish the differences between IAS 39 and IFRS 9 and if indeed the IFRS 9 model has improved accounting procedures in banking.
60 pages (15000 words) Dissertation
The role of the IMF in helping poor and debt-troubled countries
The IMF aims to correct the economies of its members by lending money to those with payment imbalances, thorough monitoring of member economies and affording them appropriate policies. It was in 1982 during the Latin American Third World debt crisis
4 pages (1000 words) Assignment
Auditing Research
Mainly, it faces threat from competition. The competitive industry of Nike is challenged by a certain number of companies. For example, Under Armour, which is smaller than Nike and by end of 2014, had achieved $3billion. This was an increase of 29% from
2 pages (500 words) Essay
Find out how much would it cost
to 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