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Regulatory, Cultural and Ethical Dimensions to the Introduction of International Accounting Standards - Essay Example
Author : funktracy
Finance & Accounting
Pages 9 (2259 words)
The major weaknesses of this study are concentrated on the regulatory, cultural, and ethical dimensions to the introduction of International Accounting Standards. Corporations and business entities at large comply with International Accounting Standards directive and regulation as a basic legislation. …
According to the research findings companies are often placed under regulations with respect to international accounting standards to enable the accounting professionals to provide an honest and accurate financial image to company’s stakeholders. Through compliance with international accounting standards regulations, companies are bound to benefit from their investors’ confidence with regards to truthful and accurate reporting of the financial situation and performance of the company. More so, compliance to such standards would render financial information more understandable, reliable, comparable, and relevant among the users of financial information in assessing confidence in company management and making economic decisions. Regulatory dimensions of international accounting standards are subject to a two tier endorsement mechanism standards a technical and regulatory level. The regulatory level endorsement mechanism is based on proposals of local accounting commissions that decide on the levels and whether the International Accounting Standards are to be adopted. Local regulatory bodies aim to ensure that full accountability and transparency is achieved in financial reporting through both local regulations and compliance to International Accounting Standards. Countries and regions such as the European Union have enforced compliance regulations among its publicly listed companies to apply International Accounting Standards in preparation of their financial statements. ...