Got a tricky question? Receive an answer from students like you! Try us!

Unified Financial Accounting Standards - Essay Example

Only on StudentShare
Author : joycenienow

Summary

Unified Financial Accounting Standards
It is arguably true that the modern business world experience numerous business operations and relevant assessment measures that determine the success of such operations in the competitive world…

Extract of sample
Unified Financial Accounting Standards

Unified Financial Accounting Standards

Indeed, since the modern business takes place in a global market, there is absolute need to define how to do business across all nations (Ingram, & Albright, 2007). As such, various organizations seek to establish different business and financial measures to define the universal manner of doing global business. Financial accounting standards are some of the measures, which all companies must comply with while doing business, assessing their progress, and reporting their success. Financial accounting standards seek to establish fairness, equality, uniformity, accuracy, and transparency in the preparation and presentation of financial statements. As such, financial accounting standards must be clearly understandable and comparable so that the users can apply them effectively. The accounting profession adopted the generally accepted accounting principles, which defines universal reporting principle in the global market (Ingram, & Albright, 2007). Financial accounting standards derive many merits in the business field and various users rely on financial accounting standards to perfume their business and accounting responsibilities. The users may include investors, companies, and auditors. This paper defines the characteristics of the unified financial accounting standards and discusses the benefits of unified financial accounting standards to investors, companies, and auditors with reference to preparing, reporting, and comparing the financial performance in the modern global market.
The unified financial accounting standards have certain characteristics, which guarantee accurate and material communication of the business firm’s financial position and performance. ...
Download paper

Related Essays

Finance and Accounting Research Paper: The International Financial Reporting Standards
The International Financial Reporting Standards …
10 pages (2510 words)
Tax Avoidance OR International Accounting Standards
Thus, they maintain a liberal tax system for businesses and maintain a more stricter tax system for individuals. Due to this, most businesses have many options of manipulating tax law to their favour in order to pay less taxes. In principle, taxes are paid to promote social justice and assist the government and corporate sector to meet its objectives and needs. If an individual or business entity fails to pay taxes, they are liable to prosecution and this could result in fines or jail terms (Blankson, 2004: 3). This implies that although failure or refusal to pay taxes could have serious…
15 pages (3765 words)
International Financial Accounting and Theory
The development of corporate governance in the UK since 1991 up to 2011 is assessed in this paper with a discussion on the various reports which are involved in the changes in the governance of companies in the UK. There were many corporate governance failures within UK companies such as Maxwell communications in the mid and late 1980s which included risky acquisitions, large debts and missing company assets. This led to the setting up of a committee in May 1991 which was chaired by Sir Adrian Cadbury to investigate the failures in corporate governance of companies with an aim of making…
7 pages (1757 words)
Accounting is not a root cause of the financial crisis, but it has an important role to play in its resolution.
The United States of America was the epicenter of this crisis. The sub-prime crisis caused many key businesses to close down and equity markets all around the world recorded tremendous decrease of their respective indices. This financial crisis almost created mass scale unemployment around the world. It is very interesting to study the role of financial accounting in this crisis. Many experts have expressed the view that the method of fair value accounting have exacerbated this crisis but did not initiate it. The first part of this essay will aim to analyze the role that fair value accounting…
3 pages (753 words)
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 the London Stock Exchange (LSE). All domestic companies must abide by IFRS and U.S. companies that want to list their stocks in the London Stock Exchange must convert their financial statements to…
4 pages (1004 words)
Universal Accounting Approach &Cross Border Investment
Without these accounting standards each and every business entity would have to develop their own accounting standards that would make the comparison of financial information of different business enterprises difficult. The interests of the financial activities of the individual and institutional investors have become global recognizable and there has been active involvement of various organizational bodies for the development of a widely accepted accounting framework beneficial to the investors. The existence of an efficient and liquid capital market can only be possible, if the investors are…
6 pages (1506 words)
MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT
Vodafone Company is a British multinational company that deals with telecommunication services. It holds the second position mobile telecommunication company worldwide. The company owns and operates in more than 30 countries. Evolution of Vodafone brand started in 1982 after the establishment of Racal electronics plc when Jan Stenbeck spearheaded the joint venture between Millicom and Racal Vodafone. This evolved to the modern day Vodafone. Recent research indicated that Vodafone has introduced a tiered employee reward program that offers an incentive to over 79,000 employees worldwide. The…
9 pages (2259 words)