current issues in financial reporting

current issues in financial reporting Essay example
Masters
Essay
Finance & Accounting
Pages 5 (1255 words)
Download 0
Running Head: Current Issues in Financial Reporting Current Issues in Financial Reporting [Writer’s Name] [Institute’s Name] Current Issues in Financial Reporting One of the persistent concerns in accounting is “how accounting information can (and cannot) be used, for what purposes and by whom” (Kirk, 2000, p…

Introduction

Because of this, there is a huge interest as well as apprehension regarding the basis upon which accounting data is collected and reported. Thus, the statement made by Solomons (1991) that ‘[i]f accounting is to retain any credibility – and without credibility it is worthless – its guiding light must be neutrality in financial reporting’, surely, assumes that the records on a balance sheet or profit and loss statement ought to be a precise indication of a business’s performance. This, unarguably, is the function of accounting. It is a language that explains as well as communicates features of company to its owners along with other concerned parties. The goals of financial statement turn out to be intricate during current years as the quantity and complication of disclosures have risen, and the users of financial statement have become even more demanding. Accounts are no longer merely a description of earlier activity and existing solvency. In the present day, investors as well as other users of accounts anticipate to be able to utilize them to estimate business’s potential and to predict its success. Accounting information within financial statement may well be precise in the solely legal aspect but may not expose fiscal or business truth. ...
Download paper
Not exactly what you need?

Related papers

International corporate reporting issues
Literally, the differences in the financial reporting system in varying countries have acted as an obstacle in the integration of national economy with global economy (Verschoor, 2011; Alexander, Britton & Jorissen, 2007). Thus, in order to deal with these challenges, IASB and FASB together have been duly engaged in promoting harmonization of financial reporting systems (Whittington, 2008; Mogul,…
Advanced Financial Reporting and Theory
This accelerated growth is a result of advancements in information technology. There are two different aspects of information technologies which have affected the global business scenario. These technologies have made micro management of businesses very easy and secondly they have totally revolutionized communication. Systems like SAP make it possible to micro manage organizational divisions from…
Interim Financial Reporting
The fundamental goal of interim financial reporting is to present regular and timely evaluations of a business’s performance. There are certain intrinsic limitations of interim reporting. Owing to the shortened time periods involved, inaccuracies in assessment and allocation are amplified. The consequences of seasonal fluctuations, as well as momentary market circumstances, further limit the…
Financial Reporting Assignment
The involvement of the all stakeholders, the identification of the economic status, financial identification and effective transmission of the components of the financial reports outlines the main characteristics of effective and good quality financial reports (Helen and Gary 2001, P. 57). Although conventional financial statement systems are still effective in providing financial reports in an…
current issues in financial reporting
549-586). This paper explains the importance of financial reporting in organization, and gives the reasons for and against capitalising human resources in the financial statements of a company. Discussion Financial reporting entails communication of useful financial information for making credit, investment and other decisions in business. Reports to the stockholders on quarterly and annual basis,…
International Financial Reporting Standards
The IASB is responsible for oversight of the IFRS. This agency was formed in 1973 under its former name International Accounting Standards (IAS). The IFRS were created in 2001 (Articlebase, 2008). The first nation to adopt the IFRS framework was the European Union. The countries of Europe adopted IFRS in 2005 (Moya, Perrramon, Constans, 2005). The biggest stock exchange in the European nation is…
Advanced financial reporting
Also, it includes comprehensive description of disclosures that ought to be given in an annual report that gives a transparent, true and fair picture of company’s performance to existing and potential investors. After this follows second question which focuses on comparison between voluntary and mandatory guidelines in respect of environmental reporting. It requires detailed discussion about…