Thought Activity: Essay example
Undergraduate
Essay
Finance & Accounting
Pages 3 (753 words)
Download 0
The International Integrated Reporting Council (IIRC) has come up with the new framework of reporting. Clearly, this new form of reporting called Integrated Reporting (IR) takes a holistic approach towards the whole process of corporate reporting. …

Introduction

It seems to me that IR takes into account different aspects of an organization like capitals, business model of the organization and the creation of value over time. When it considers capital it does not take capital as conventional financial accounting does; it considers other non-tangible capitals like ‘intellectual capital’, ‘human capital’, ‘social relationship capital’ and ‘natural capital’ along with financial and manufactured capital. I think IR is a totally new approach to corporate reporting, which demand skills to analyze qualitative information along with conventional financial data.
In my opinion, a person responsible for preparing a report in a format prescribed by IR needs to have some additional skills and knowledge along with conventional financial skills and knowledge. He will be no longer a passive accountant or examiner of finance related data; he will need to actively apply his knowledge, analytical skill and judgments.
I understand that the new means of reporting will pose a challenge to the present accounting professionals (accountants, auditors) who mainly work with figures and prepare financial statements. They need to acquire some additional skills and knowledge. In my poinion, accounting professional will need new training. The IR will change the way an accounting professional is trained and educated. ...
Download paper
Not exactly what you need?

Related papers

Activity Based Costing (ABC)
Historically, ABC started to become popular as an alternative approach to traditional cost accounting about three decades ago, where the latter has become increasingly proving its irrelevance (Emblemsvag, 2010). The increasing automation of production as compared to being labor-intensive, the multiple product lines compared to small number of products being produced, and the increasing overhead…
Traditional Absorption Costing versus Activity Based Costing.
In fact Geri and Ronen (2005) indicate that cost accounting systems do not normally command a high ranking in the hierarchy of most organisations, it is the information that they generate that plays a critical role in the performance of organisations and in the decision making process. The range of systems available and the claims made by the proponents of each have led to several debates.…
'DEVELOPING CONCEPTUAL FRAMEWORKS ARE A TIME WASTING ACTIVITY'
The financial accounting theory functions on the basis of conceptual framework, explains the observed accounting practices and predicts the unobserved practices. The theoretical framework of accounting evolved significantly in the 20th century following the market crash in 1929 and recent financial crisis. The major accounting theories, developed in 20th century are Efficient Market Hypothesis…
Activity Based Costing
More than that, it traces back the cost to the activities and processes (Heisinger, 2010). Above all, use of activity based costing (ABC) method especially in companies with diverse centers and distribution channels has proven to be suitable. Unlike other methods, the activity based costing (ABC) method ensures that there exists a direct correlation between the related overhead costs and the…
Activity Based Costing
Activity costing being one of the methods of cost allocation. There are four major steps in cost allocation using this method. First is the determination of the major activities of the business that result in cost increases. The cost centers of the activities are then determined. The third stage is the determination of the cost drivers i.e. the factors responsible for the increase in cost in 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…
The Activity Based Costing System
ta for input may be used differently according to different methodologies of the costing information system which may result in the production of varying outputs of information. A costing system is aimed at generating information to find ways to minimize waste in production. It should be taken care of that the benefits that are derived from the costing system should be higher than the resources…