Policy Choices under IFRS in UK and German Context

Policy Choices under IFRS in UK and German Context Essay example
Masters
Essay
Finance & Accounting
Pages 10 (2510 words)
Download 0
Policy Choices under IFRS in UK and German Context 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…

Introduction

Nobes (2006) 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. Other issue that may also arise is that organizations may not have any joint-ventures with other entities. In such cases organizations are unable to report their valuation whether they should be valued on proportionate basis or as per equity method. This particular report will analyze the 12 policy choices out of those 16 in the context of UK and Germany. ...
Download paper
Not exactly what you need?

Related papers

The Impact of IFRS for SMEs on UK companies
All of these entities have the option to adopt corresponding accounting tiered reporting framework under a certain purpose (Baker and Wallage, 2000). For instance in the United Kingdom (UK), publicly accountable entities are required to adopt full international financial reporting standard (IFRS) while those non-publicly accountable entities are required to use IFRS for SMEs. On the other hand,…
Financial Reporting Research Project : Intangible Assets under U.S. GAAP and IFRS
Here, separable means selling, transferring, exchanging, renting and licensing. There is no contingency regarding they being separable or transferable. Similarly, the US GAAP categories of intangible assets: (1) Limited life intangible asset and (2) Indefinite life intangible asset. An intangible asset is an asset other than financial assets lacking physical appearance (SFAS 142 Glossary) and is…
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…
IFRS
The reason for opting for gradual convergence instead of adoption is that the local accounting body may want to become involved in the standard setting process. If IFRS is adopted fully then we will just have to accept what a few people have decided for us. I think we should be involved in decisions that affect us, and other countries have taken a similar approach. In fact, Ramanna and Sletten…
Hedge accounting under IAS 39 and IFRS 9 - A critical comparison
The second section reviews the literature related to IAS 39 and IFRS 9 as financial instruments used in hedge accounting. The next section outlines the methodology used in this study, including a conceptual framework of research variables, data sources, data collection and data analysis methods. The last section of this study discusses the ethical issues ethical issues arising from the proposed…
The need of IFRS and the Problem of adopting it for UK Small and Medium Enterprises
It is tough to bring such a radical change in operational as well as financial aspects for these SME. These radical changes are not without their associated dangers and risks. This research paper tries to elucidate the benefits and the problems of adopting IFRS for SME and provides suggestion of adopting a middle path between benefit and associated risk. Table of Contents Table of Contents 3…
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…