IFRS Adoption Impact Local Government Financials

International Auditing Standards And Standards
International Auditing Standards
<Put your name here>
<Put the name of your school / university here> United States of America
In the United States, the International Auditing and Assurance Standards Board (IAASB) works as
an independent body, setting standards for auditing under the International Federation of
Accountants (IFAC). The IAASB establishes the best quality auditing, quality control, assurance,
and related services in order to ensure uniformity of practice by professionals all across the world.
Until 2002, the IAASB was formerly known as the International Auditing Practices Committee or
IAPC. With such high standards in place for auditing and assurance, public confidence is therefore
improved (International Federation of Accountants, 2014). As part of its mission, the Auditing
Standards Board (ASB) – senior technical body of the AICPA – issues Statements on Auditing
Standards (SASs). To assure compliance with standards of AICPA, Rule 202 under the Code of
Professional Conduct requires that any AICPA member who performs a non–issuer audit must
comply with standards set by the ASB. In 2007, a ground–breaking project was initiated by the
ASB, to ensure clarification of its standards to make them understandable, easy to read, and simple
to apply. As part of this important process, the ASB revised all SASs in accordance with traditions
of clarity by using the corresponding International Standards on Auditing or ISAs. Nearly all
clarified SASs vary from
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Essay On Development Of International Reporting Standards
Development of International Reporting Standards (IFRS)
There is a very lengthy and detailed due process that must be followed when developing standards
for IFRS. The main goal of the IFRS Foundation is "is to develop, in the public interest, a single set
of high quality, understandable, enforceable and globally accepted financial reporting standards
based on clearly articulated principles." The IFRS Foundation delegates the responsibility of
developing standards to the International Accounting Standards Board (IASB). The IASB is
continually striving to develop standards that offer the most accurate representation of an entity's
financial performance through its financial statements. These standards are intended to help lenders,
investors, ... Show more content on Helpwriting.net ...
The DPOC is also responsible for ensuring that the IASB's consultative groups include a wide range
of perspectives as well as reviewing the effectiveness of each group. Additionally, the DPOC must
monitor the efficiency of the Interpretations Committee, the IFRS Advisory Council, and any other
group that is involved in the standard–setting process. The DPOC is only involved in matters
relating to due process and is held accountable by the Trustees.
COULD ADD MORE HERE IF NECESSARY (refer to page 8 of the handbook) The due process
procedures are based on three main principles: transparency, full and fair consultation, and
accountability. In order to ensure transparency throughout the process, the meetings between the
IASB and Interpretation Committee are open to the public, recorded, and are often broadcast live on
the web. The recordings of these meetings can be accessed through the IFRS Foundation website.
Any decisions made during these meetings are summarized and published on the website as well.
Meetings are scheduled well in advance in order to ensure that all groups and committees have
sufficient time to prepare. It is only under extreme circumstances that meetings are scheduled on
short notice and in these instances, the IASB is required to notify all interested parties of the
meeting. The full and fair consultation principle requires that the IASB consider

Corporate Governance Of The Sarbanes Oxley Act Of 2002
As of today, an international corporate governance model does not exist. Corporations are bound by
the laws and regulations of a country and the shareholders' expectations. Even countries with similar
histories, customs, languages, and ethnicities such as the United Kingdom ("U.K.") and the United
States ("U.S.") have different corporate governance standards (Monks & Minow, 468). While the
U.K. has a separate code of corporate governance with guidelines, the U.S. incorporates their
governance policies within their laws. The U.S. regulates corporate governance through the
Sarbanes–Oxley Act of 2002 ("SOX"), the Securities & Exchange Commission ("SEC"), and stock
exchange guidelines. U.S. corporations are registered in particular states, so ... Show more content
on Helpwriting.net ...
U.S. organizations are held by many shareholders who are uninvolved in the daily running of the
company. Institutional investors usually have the largest stakes. Governance of companies is
determined by the states, but U.S. states do not give shareholders many enforceable rights. This is
different in the U.K., where the shareholders and their objectives are the purpose of financial
reporting (ValueWalk). The Institutional Investors Committee ("IIC") of the U.K. adopted a
statement of codes and responsibilities. This statement includes clarifying the priorities for certain
matters and deciding when to take action; observing the performance of and having conversations
with portfolio companies; intervening when necessary; assessing the influence of activism efforts;
and reporting back to clients and owners (Monks & Minow, 2011). In the U.K., the shareholders are
the customer and the enforcers, whereas in the U.S., companies are focused on how well they are
doing in the market. The U.S. has separation of ownership and management. SOX gave the SEC the
ability to prevent people from serving as officers and directors. Non–executive directors oversee the
managers' performance. The board of directors includes the executive & the non–executive directors
who plan the path of the organization. The independent directors' main responsibility is to manage
all activities of the management board.

Australia 's Local Government Ifrs Adoption
Summary The journal article named "The effect of IFRS Adoption on the financial reporting of local
government entities" By Kamran Ahmed and Manzurul Alam aims at finding the changes of key
accounting components surplus, equity and asset while changing accounting policy from Australian
Accounting Standards (AAS) to International Financial Reporting System (IFRS).Introduction of
International Financial Reporting System (IFRS) is thought to be a paradigm shifting event in
financial reporting system. Australia is one of the first countries to adopt IFRS for the local
government. It was a great challenge taken by Australia to adopt IFRS before USA and EU. In 2004
Australia adopted IFRS to their accounting policy. Afterwards, through the ... Show more content on
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According to Deegan one of the reason of concern was leading substantial changes in numerous
existing Australian standards and small changes in others reporting requirements due to adoption of
IFRS. Ahmed and Alam revealed that from modifying report presentation formats to costs and
benefits of profit seeking companies IFRS adaptation impacts significantly. They focused on the
listed firms accounting policy after adoption of IFRS and found noticeable changes in results
reconciliations prepared under AAS and IFRS. They also studies over decision making process of
local government. For larger councils IFRS standards and argued for smaller councils as they though
it would be a lot of changes for them to cope with. The authors did empirical study to examine the
effect of adoption IFRS in local government entities. The results shows as a result of changing
accounting policy from AASB to IFRS there are changes in equity and accounting surplus (loss).
They used the annual reports of 117 Australian local government identified by adoption of IFRS the
key components of stated in the reconciliation notes that impacts the variance between AASB and
IFRS equity and surplus. Their Study also provided consistent result on the effect of adoption of
IFRS by private sectors in Australia. Finally, this paper contributes significantly towards the study of
IFRS adoption by local government and believes it is a positive move by Australian local
government and for

Accounting Method Of Goodwill : The Performance And...
accounting method of goodwill. Many who analyze private companies disregard goodwill when
determining the performance and financial condition of private companies. In a survey of financial
statement preparers it was found that they did not believe that previous rules for private companies
regarding goodwill recognition were inadequate and did not save much cost to these smaller private
companies. (Lange, 1) In the amendment created by the influence of the PCC, privately held
companies have an optional election for an alternative measure of goodwill. The formal explanation
of the amendment is as follows: "An entity within the scope of the amendments that elects the
accounting alternative in this Update should amortize goodwill on a straight–line basis over ten
years, or less than ten years if the entity demonstrates that another useful life is more appropriate
(Lange, 2)." US GAAP which pertains to public companies requires that goodwill be tested annually
for impairment or in some cases more frequently. In addition, goodwill is not to be amortized by
public companies. This is just one example of an alternative method of GAAP which is available for
private companies. Just days ago the Board of Trustees of the Financial Accounting Foundation
released a news update to the procedures of the PCC. The release was to explain several updates
made to the PCC in regards to their interaction in the FASB's active projects. The updates came in
response to more than fifty letter

The Financial Reporting Council Defines Complexity
The Financial Reporting Council defines complexity as 'anything that makes regulations or the
reports themselves unnecessarily difficult to understand, implement or analyse' (Financial Reporting
Council, 2009). Many areas of annual reports have been highlighted over the years as annual reports
are seen to be getting more complex to both the users of accounts and the preparers. There have
been many discussions as to whether annual reports are becoming more complex and harder to
understand. An annual report is a detailed report for shareholders and other business partners on a
company's activities throughout the year. It is a legal requirement form the Companies Act 1985/9
that requires companies to publish their annual report and ... Show more content on Helpwriting.net
...
Financial information is seen to be relevant is it has 'confirmatory value, predictive value, or both'
(Maynard, 2013, pp14). There are also four enhancing characteristics, which improve the usefulness
of financial information. One of these characteristics is understandability which means that the
information in an annual report should be 'classified, characterised and presented clearly and
concisely in order to make it understandable' (Maynard, 2013, pp16). Other characteristics include
comparability, verifiability and timeliness (Appendix 1). As there are many characteristics to satisfy
in order to meet the demands of the users, the annual report is said to obscure important information
and include 'clutter (which) undermines the usefulness of annual reports and accounts' (Financial
Reporting Council, 2011). This then gives an unclear understanding of the issues a company actually
faces, and raises the question as to whether these characteristics are right, as relevant information
becomes more difficult for users to analyse a company's progress. The financial statements are
influenced by many different regulations, such as the Domestic legislation, the International
legislation and rules, and for some companies that are listed, the stock exchange (Appendix 2). In an
attempt to harmonise some of the rules and regulations the Conceptual Framework has been created,
in

Essay Gasb and Fasb Analysis
Running head: GASB AND FASB ANALYSIS PAPER
Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board
(FASB) Analysis Paper
Mandy Diaz
University of Phoenix
Marie Romero
ACC 460 / Government and Non–Profit Accounting
March 30, 2010
Governmental Accounting Standards Board and Financial Accounting Standards Board
This paper will be aimed at comparing and contrasting governmental (GASB) which is
Governmental Accounting Standards Board and proprietary (FASB) which is Financial Accounting
Standards Board accounting. It will explain the objectives of the two standards boards and how they
are similar and different. Last it will describe how the modified accrual basis of accounting differs
from full ... Show more content on Helpwriting.net ...
This is a situation in which those entities that are government owned are governed by GASB and
those that are owned by the private sector are governed by the FASB. According to the current rules
the GASB would consider the fact that the private sector special entities have their financial
statements prepared in accordance to the FASB and this matter should be considered by the GASB
when it is comparing financial statements of privately owned and state owned special entities. In
other words the private entities continue to be governed by the FASB in this environment.
The objective of the GASB is to set and improve standards of local and state government financial
accounting. GASB objectives are also to improve the government's ability to show its performance
to the public, to improve the information available to the public so that they can hold the
government responsible, to guide all users of government financial reports and provide useful
information to the users of the financial reports of government entities. The objective of the FASB is
to set accounting standards for public companies in the US. Its objectives include improving the

relevance and reliability, comparability and consistency, and convergence and quality of financial
reporting. It also strives to keep standards current, rectify areas of deficiency in financial reporting
and improving the understanding of the information in financial reports. The role of

AASB 15
According to the research, Accounting standards exist to facilitate the preparation of high–quality
and consistent general purpose financial statements to convey the useful information about the
general financial condition and results related to reporting entities, such as companies, non–profit
corporations and governments. And Australia adopted International Financial Reporting Standards
(IFRS) in 2005, as directed by the Financial Reporting Council in its 2002 directive to the AASB.
The Australian Accounting Standards Board has published AASB 15 Revenue from Contracts and
Customers, the Australian equivalent of its international namesake, IFRS 15. And the purpose of the
new Standards is to provide (except in relation to some specific exceptions, such as lease contracts
and insurance contracts) a single source of accounting requirements for all contracts with customers,
thereby replacing all current accounting pronouncements on revenue.
The steps of AASB 15 can be divided into the following five points which are step1: identify the
contract(s) with the customer, step 2: identify the distinct performance obligations, step 3: determine
the transaction price, step 4: allocate the transaction price to the performance obligations and step 5:
recognize revenue when (or as) a performance obligation is satisfied
In ... Show more content on Helpwriting.net ...
Also it is difficult for users to use it and understand clearly, and the lack of regulatory framework.
By contrast, the new standard (AASB 15) fills the deficiencies of the previous standards, analyzed
provisions. On the basis of simplified the procedure of obtain information; AASB 15 adds more
details of the transaction information. Based on the content that mentioned above, those two
previous standards (AASB 118 and AASB 111) have been replaced by the new standard

Sec ( Securities And Exchange Commission
A. The Nature, Structure and Objective of Each of These Institutions SEC (Securities and Exchange
Commission): The SEC is created in the 1934 Act by Congress, primarily to enforce the newly–
passed security laws, to promote overall market stability and to protect investors. Currently, the
general mission of SEC is to protect investors, to facilitate capital formation, and to maintain the
fair, orderly and efficient markets. SEC has the authority to set accounting and reporting standards
for companies, who public trade their securities. It requires all the public companies to disclose
financial and other information to the public, so that ensure all the investors have access to basic
facts related to the investment before and after buying the investment. SEC oversees and regulated
the U.S. security market as well as works closely with many other institutions, including federal
departments, self–regulatory organization, state securities regulator and private sector organizations.
SEC has five main divisions, which includes corporation finance, investment finance, enforcement,
trading and marketing and economic and risk analysis. The corporation finance division regulates
and ensures the public companies to offer their basic financial information to all the investors. The
division also provides assistance and recommendations to the public companies related to the new
and exiting rules. The division of investment management provides guidance, disclosure,
rulemaking and risk

Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (United States)
In the U.S., generally accepted accounting principles, commonly abbreviated as US GAAP or
simply GAAP, are accounting rules used to prepare, present, and report financial statements for a
wide variety of entities, including publicly–traded and privately–held companies, non–profit
organizations, and governments. Generally GAAP includes local applicable Accounting Framework,
related accounting law, rules and Accounting Standard.
Similar to many other countries practicing under the common law system, the United States
government does not directly set accounting standards, in the belief that the private sector has better
knowledge and resources. US GAAP is not written in law, although ... Show more content on
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This principle allows greater evaluation of actual profitability and performance (shows how much
was spent to earn revenue). Depreciation and Cost of Goods Sold are good examples of application
of this principle.
Disclosure principle. Amount and kinds of information disclosed should be decided based on trade–
off analysis as a larger amount of information costs more to prepare and use. Information disclosed
should be enough to make a judgment while keeping costs reasonable. Information is presented in
the main body of financial statements, in the notes or as supplementary information
[edit] Constraints
Objectivity principle: the company financial statements provided by the accountants should be based
on objective evidence.
Materiality principle: the significance of an item should be considered when it is reported. An item
is considered significant when it would affect the decision of a reasonable individual.
Consistency principle: It means that the company uses the same accounting principles and methods
from year to year.
Prudence principle: when choosing between two solutions, the one that will be least likely to
overstate assets and income should be picked (see convention of conservatism).
Generally Accepted Accounting Principles (UK)
The Generally Accepted Accounting Practice in the UK, or UK GAAP, are the overall body of
regulation establishing how company accounts must be prepared in the United

Questions On Financial Reporting Disclosures
1. Introduction
ICAEW made nine recommendations about financial reporting disclosures in 2013 to solve current
disclosure overload problem. This report will mainly argue against recommendation four. Choosing
this prospect because one of the objectives of the Financial Conduct Authority (FCA) is to protect
consumers from being taken advantage of by other informed participants in the capital market.
Among all the suggestions, disclosing different reports for different users has the most significant
influence on investors and capital market.
Section 2 of this report will firstly discuss the probability of fraudulent financial reporting and the
fairness problem. Then the information asymmetry problem and the instability of the security
market ... Show more content on Helpwriting.net ...
Assuming public companies are allowed to distinguish classes of users, the decision–relevant
information could be split on the basis of different interests and somebody may take advantage of
this loophole to provide fraudulent information for a favourable outcome in stock price.
2.2 Example of FFR
According to the most resent report from Association of Certified Fraud Examiners (ACFE, 2008),
from January 2006 to February 2008, among all types of frauds, FFR associated with largest average
cost which was $258 million, while the second largest was $34 million. Furthermore, the study from
KPMG (2003) and ACFE (2008) all agreed FFR is the least common but most costly fraud (Carcello
and Hermanson, 2008). The estimated annual cost of FFR in USA is $1 trillion (ACFE, 2008), and
this is just under the relaxed disclosure regulation, which is the Securities Offering Reform, issued
in 2005 in America (Clinton et al., 2014). "And FFR is certainly not limited to the United States"
(Zack, 2009). Hence, FCA considered FFR facts in US as a lesson and involved in a special project
in 2010 in UK to examine fraud in public companies (Fisher et al., 2010). To conclude,
recommendation four could increase the probability of FFR which could stimulate the stock price,
and that will harm consumers and encourage the unhealthy competition in security market.

Why Iasb Should Reopen Controversial Issues
Whether IASB should reopen controversial issues in Chapter 1 and Chapter 3 I. Introduction The
revision of the conceptual framework influences the controversial issues in the chapter one and
chapter three about whether IASB should increase the status of stewardship or accountability,
replace reliability into faithfully representation and remove the word 'prudence' which is one of the
core quality principles in the previous conceptual framework. This essay is going to consider those
three controversies to answer three question – the nature of the controversies, the reasonability of
the IASB's feedback against the criticisms and the solution towards the controversies. II. The
controversial issues The answer to the question about the nature and the function of the company
financial report has been attempted to be answered over the years. According to Alexander (2011),
the conceptual framework for financial reporting (Conceptual framework) is defined as a scheme of
systematic thinking which provide not only the definition but also the solution to accounting issues.
Meanwhile, it is seen as a tool of help standard setter (IASB) to develop and revise reporting
standards. It is a reference to prevent standard setter from confusion like fire fighting while they
face accounting questions, for example if some item can be defined as asset. In fact, the status of the
conceptual framework is higher than the specific standard and more precisely, it is seen as a
guidance for

Accounting Is The Key Financial Segment Of An...
Introduction
According to Black (2009: 2), accounting can be defined simply as the recording, summarizing and
interpretation of financial information. A more detailed definition is that offered by the American
Accounting Association (1966), as follows: 'The process of identifying, measuring and
communicating economic information to permit informed judgments and decisions by users of the
information'. This means that, in terms of identifying, this should focus on the key financial segment
of an organization, like liabilities, assets and capital. Measuring, on the other hand, refers to the
budget of the company and it shows a true and fair view of the organization. Next, communicating
refers to the financial information which is transmitted to the people who need this information.
In other words, accounting is the language of business which can help stakeholders well
understanding the business and make the correct decision. Also, the purpose of financial accounting
is to provide useful information to others to show the value of a company or business. Financial
accounting aims to give information that others can use so that they can understand what the
company is valued at.
Financial Statement
There are three financial statements in the accounting – income statement, balance sheet and
statement of cash flow.
The Income statement is known as 'profit and loss statement'. Normally it shows the revenue and
expenses.
The Balance sheet is known as 'Statement of Financial

Acct2542 Essays
Testbank to accompany Company Accounting 10e by Ken Leo, Jeffrey Knapp, Sue McGowan &
John Sweeting Prepared by Peter Baxter [pic] © John Wiley & Sons Australia, Ltd 2015 Chapter 1:
Nature and regulation of companies Multiple–choice questions 1. The advantages of a company
over a partnership and sole trader do not include which of the following? a. Members are able to sell
their shares at any time to another person without having to obtain permission from the other
members. b. Members are liable for only a limited amount of the company's debts. c. A company has
a legal existence distinct from its owners. *d. A company is only entitled to raise small amounts of
cash by issuing ... Show more content on Helpwriting.net ...
c. fewer than 100 employees at the end of the financial year. *d. fewer than 50 employees at the end
of the financial year. Correct answer: d Learning Objective 1.2 ~ discuss the different types of
companies which may be formed under the Corporations Act 2001 5. A proprietary company must
have at least one shareholder and cannot have more than: a. 100 shareholders. *b. 50 shareholders.
c. 20 shareholders. d. 500 shareholders. Correct answer: b Learning Objective 1.2 ~ discuss the
different types of companies which may be formed under the Corporations Act 2001 6. A disclosing
entity includes: a. a company that is not a reporting entity. *b. an entity which has its shares listed on
the ASX. c. an entity which issues its shares only to the company directors. d. a small proprietary
company. Correct answer: b Learning Objective 1.2 ~ discuss the different types of companies
which may be formed under the Corporations Act 2001 7. The certificate of registration issued by
the Australian Securities and Investments Commission is valid: a. for 12 months only and must be
renewed annually. b. for a maximum period of 5 years. c. for 15 years. *d. until the company is
deregistered. Correct answer: d Learning Objective 1.3 ~ describe the necessary documentation for
forming a company 8. The replaceable rules built into the Corporations Act deal with which of the
following?

Adoption of Ifrs in Australia
International Financial Reporting Standards (IFRS) are an international set of accounting standards.
Early in the 21st century, the Australian Accounting Standards board, with guidance from the
Financial Reporting Council (FRC), decided to implement IFRS's throughout Australia. This
decision was made so that Australia could participate and contribute to the development of a distinct
set of accounting standards that could be used all around the world. This report will explore the
process of setting standards in Australia, the effects it can have on interest groups, and the way in
which the introduction of IFRS would change the way Australian accountants report their financial
position. The setting of accounting standards is a political ... Show more content on Helpwriting.net
...
This includes public sector entities, certain non–listed companies such as large companies, as well
as not–for–profit organisations such as charities. There are minor differences between the IFRS and
A–IFRS, for example, differences in wording to accommodate the Australian legislative
environment, as well as additional disclosures, and additional requirements for not–for–profit
entities. (Deloitte, 2005, A–IFRS vs. IFRS). Process of Setting Standards I believe that the process
of setting standards, both in Australia, and on an international level, is a political process. It involves
politics to a great extent in a number of ways. For example, politics are involved during the standard
setting process, as the groups involved are all government groups which are statutory bodies under
various acts, this is politics. The affects that the standards have on stakeholders in Australian
companies as well as the economy as a whole, is also linked to politics. The FRC advises the
Australian government on the process in which accounting standards are set, as well as advising the
direction in which the AASB will head. The AASB is responsible for standard setting in Australia.
Although the FRC can provide the AASB with strategic directions, it does not have the power to
directly force the AASB to create or amend a specific standard. The FRC is also responsible for
appointing the members of the AASB,

Introduction. Keeping The Day-To-Day Business Accounting
Introduction
Keeping the day–to–day business accounting is not just a necessity but rather, and above all, an
obligation. Financial accounting seeks to find answers to recurring questions in a business such as,
how much was sold last month, how many people have used the services, and how much to produce
to meet the needs of the customers. The financial accounting is a method that helps better organize
and manage any business. Accounting is the science that serves to organize all the numeric records
of a particular company. Thus, it serves to record all movements of values and quantities. Having
said that, it is not difficult to understand that financial accounting is, above all, a tool for managing a
business, regardless of its size.
This ... Show more content on Helpwriting.net ...
International Accounting Standards Board & International Financial Reporting Standards
A brief summary of recent global accounting is needed to understand what the international area
standards are and how they work. In 1973 the International Accounting Standard Board (IASB) was
created, an independent entity of the private sector. The IASB was created, among other functions,
for the preparation and issuance of International Financial Reporting Standards (IFRS). The entity
already existed previously, under a different name, but it was until after 1973 that it actually had the
strength to organise a movement of change in the accounting aspects at world level. The
headquarters of the IASB is located in London, and has the experience of more than 140 different
professional accounting entities. According to the website http://www.ifrs.org/About–
us/Documents/Who–We–Are–English.pdf the IFRS foundation and the IASB were established in
2001.
Overview of the structure of the International Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS)
The international financial accounting standards is a non for profit private sector. Their aim is to
serve the public interests. With the growing globalisation of business and finance, it has stimulated a
standardisation of accounting standards among countries. This measure aims to

History Of The FASB
Jocelyn: What is the FASB?
The Financial Accounting Standards Board (FASB) is a non–profit association that designs and
updates the generally accepted accounting principles (GAAPs). These rigorous accounting
principles are used in the private sector during the preparation of mandatory financial reports that
are given to shareholders, the public or government agencies.
How Did the FASB Originate?
The Financial Accounting Standards Board was established in 1973 by the Securities and Exchange
Commission (SEC). Previously, there were semi–standard accounting principles that were overseen
by the Accounting Principles Board (APB), which was part of the American Institute of Certified
Public Accountants (AICPA). However, unstandardized accounting ... Show more content on
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For example, the business entity means that commercial expenses are kept separate from personal
expenses and the monetary unit is generally the U.S. dollar. Next, there are four basic principles that
cover historic costs, revenue recognition, matching and full disclosure. For instance, the historical
cost principle mandates that companies report their asset and liability acquisition costs instead of
reporting the fair market value. On the other hand, the revenue recognition principle states that
companies must only record earned revenue, not received revenue. This forms the basis of accrual
basis accounting. Finally, there are four basic constraints, which include objectivity, materiality,
consistency and conservatism. To illustrate, the objectivity principle mandates that financial
statements produced by the company's accountants must be based on factual evidence. Conversely,
the consistency principle means that the company must use the same accounting methodology for
every accounting period. Overall, the GAAP provides structured consistency and transparency to all
aspects of accounting and financial

Introduction To Australian Accounting Standards Board
Accounting Abstract Accounting has been playing a very important role in many places such as
Australian accounting standards. Australian accounting standards is also developed by the Australian
Accounting Standards Board (AASB). This essay will firstly discuss what AASB is, the role and the
functions of AASB. And then, following this, the other projects' role such as Financial Reporting
Council (FRC) and International Accounting Standards Board (IASB) and the relationship between
AASB, FRC and IASB. Introduction Australian Accounting Standards Board (AASB) have been
developing Australian accounting standards. Australian Accounting Standards Board impairment of
assets was implemented in Australia for an accounting standard ... Show more content on
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In addition, it is very important to owners, investors and creditors by presenting the financial
position, cash flows and financial performance. AASB develops and maintain high quality financial
reporting standards for all sectors of the Australian economy and contribute to the development of
global financial reporting standards to be recognised. Moreover, this can identify technical issues
(Brian, 2003). When AASB identify a technical issues, it will develop a project proposal. A project
proposal may include an assessment of the potential benefits of undertaking the project and the costs
of not undertaking it and then the project proposal will be reviewed and made a decision by the
AASB. This has close relationship with FRC and IASB (Flikkers, 2008). The role of the Financial
Reporting Council The Financial Reporting Council (FRC) is the key responsible for overseeing the
effectiveness of the financial reporting framework. The members of the AASB is appointed by
Financial Reporting Council (FRC) (Howieson and Langfield, 2003). FRC can issue broad strategic
directions to the AASB, but FRC's ability is limited by the Australian Securities and Investments
Commission Act 2001. Three aspects, which are the codes and standards committee, the executive
committee and the conduct committee, support the FRC board. There are some main objectives. For
example, accounting standards may

Harmonization of Accounting Standards
Abstract Discussion on harmonization is started quite long time ago. Its impact on the countries
economy is good or bad is the central idea of this essay. This essay is written specifically on the
accounting standard used in Australia. This essay starts with introduction on various topics such as
conceptual framework, IASB, Sacs then it discussed the issue of harmonization. Harmonization will
have positive impact on the economy because it attracts overseas investors to invest in Australia.
This essay covers difference between conceptual framework developed in Australia and IASB
framework. There are given lot of difference such as treatment of non for profit entity is same as the
public entity in A–IFRS. Reporting entity concepts and ... Show more content on Helpwriting.net ...
R., and S. Jones, 2002 Conceptual framework is like a constitution for standard setting process. It is
the concepts to define nature, subject, and purpose, of the financial report. it has many advantages to
have a conceptual framework for than company for example when there is a conceptual framework
implemented in the country then all business bodies follows that framework and so there is better
communication between different business entities. Otherwise it is not possible if there is no
conceptual framework in the country. The AARF (Australian accounting research foundation) has
discussed many different benefits of having conceptual framework as follows all financial reports
will be in consistent with others. Setting conceptual framework is also economical for the country.
More advantages are given below: Those who made the framework are now more responsible and
accountable for their actions .entities are now more accountable if they do not proved any disclosure
or giving false information. CF provides a means of communicating key concepts to financial report
to preparers and users, as well as providing guidance to reporting entities when no specific standards
address a particular issue. Financial reports made by the help of conceptual framework are
consistent and more in logical manner so that there is more understandability in the financial reports.
Because standard–setters will have harmony on many important issues, the

Ifrs Applicable in Bangladesh
Executive Summary The adoption of IFRS around the world is occurring rapidly to bring about
accounting quality improvement through a uniform set of standards for financial reporting.
However, accounting quality is a function of the firm's overall institutional setting, including the
legal and political system of the country in which the firm resides. This paper documents the
prospects of IFRS adoption and their impact on the financial reporting environment of Bangladesh
considering the underlying institutional and economic factors. It argues about trade–off between the
scale advantage of IFRSs (designed globally by the highly sophisticated authority) and the local
advantage of decentralized adaptation. It is also an effort to focus on the ... Show more content on
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(Belkaoui,1994). Despite the difficult process Anderson (1993) said "a set of international
accounting standards will allow new horizons of evolution due to the fact that comparative analysis
of the rates of returns established based on the balance sheets and profit and loss account between
the companies being in competition become relevant". The comparison, as the basic form of
economical judgment can be realized only if the accounting system is unique for all the companies
involved in the analysis. Also harmonization is absolutely necessary because national standards of
financial statements are virtually useless; financial markets in more regulated countries are
threatened with a loss of market share; and multinational corporations must prepare multiple reports
for different nations they do business in. (Nobes and Parker 1991). In order to accomplish this target
the accounting profession developed the solutions like: the American solution GAAP or the
European solution (British solution to be read) IAS/IFRS. On the backdrop of getting a single set of
international accounting standards (since October 2002, the IASB and FASB have been working
systematically toward convergence of IFRS and U.S. GAAP), IFRS is rapidly gaining acceptance as
over 100 countries have recently moved to IFRS reporting or decided to require the use of

History Of Accounting And Private Sector
Introduction
Since the early 1980s public sector accounting and private sector accounting have experienced
significant transformation such as decentralization, deregulation and the differences between thee
two sectors are highly topical and political in many countries (Blondal 2003). The key
transformation is the adoption of 'accrual basis' of accounting rather than 'cash basis' accounting by
increasing number of countries (Guthrie and Ryan 1998). Meanwhile, public sectors refer
specifically to organizations owned by government and private sectors refer to those organizations
which are not government, owned and run by individuals and companies for profit–oriented
(Investopedia 2014). In this essay, there are several accounting issues to be discussed, include the
development of sector neutrality, advantages and disadvantages of accrual basis accounting in public
sector and meaningfulness of sector neutrality.
Development of sector neutrality
'New Public Management' is used to describe the institutionalization of private sector corporate
models into the public sectors (Guthrie and Ryan 1998). In order to set a standards to private and
public sectors, the Public Sector Accounting Standards Board (PSASB) merged with the Australian
Accounting Standards Board (AASB) in 2000 (Ryan, Guthrie and Day 2007). After merging with
PSASB, the new AASB made a decision regarding International Financial Reporting Standards
(IFRS) adoption in 2002 but effective in 2005 (Ryan, Guthrie and Day

Critically Evaluate the Importance of Regulator in...
Users of accounting information, who do not have day to day access to the record of the business,
rely on the integrity and judgment of management to provide suitable information of a high quality.
All financial statements are essentially historical documents they shows the financial performance of
the company. Most users of financial statements are concerned about what will happen in the future
and decision making upon the present or past financial records of the company. Stockholders are
concerned in future earnings and dividends. Creditors are concerned with the company's future
ability to repay its debts. Managers are concerned with the company's ability to finance future
expansions. Despite the fact that financial statements are ... Show more content on Helpwriting.net
...
It is essential that the information provided in financial statements is readily understandable by
users. Users are assumed to have a reasonable knowledge of business and economic activities and
accounting, and a willingness to study the information with reasonable diligence. Also information
has the quality of relevance when it influences the economic decisions of users by helping them
evaluate past present and future events or confirming or correcting the past evaluations. Information
is material and it depends on the size of the item or error judge in the particular circumstance of its
omission or misstatement. The IASB framework takes the view that materiality is a cut off point
whether information is important to the users. If information must be relevant but so unreliable that
it could be misleading so the information must be reliable. Information has the quality of reliability
when it is free from material error and bias.
Comparability in a financial statement means that users must be able to compare the financial
statements of enterprise overtime to identify trends in its financial position and performance. Users
must also be able to compare the financial statements of different companies to evaluate their
relative financial position, performance and changes.
The accounting measurement principles that establish reliability and about the disclosure of
information that allows

Financial Reporting And The International Accounting...
Introduction & Purpose
Complexity in financial reporting is apparent especially when applying it to relevant accounting
theories. "Complexity is ' 'the state of being difficult to understand and apply ' ' (SEC 2008, cited in
Petersen, 2012). When we apply complexity to accounting we think of it in terms of applying it to
accounting transactions which flow onto financial statements and how these were developed from
the Accounting Standards. (Peterson, 2012, p.73). The purpose of this report is to address the
complexity of financial reporting and how the International Accounting Standards Board (IASB)
intends to do address this problem through its 'Disclosure Initiative'.
The International Financial Reporting Standards (IFRS) is the international accounting standards
developed by the ISAB. The ISAB have set up the Disclosure Initiative to examine where IFRS
could be improved.
We will examine the complexity of financial reporting and how it applies to Positive Accounting
Theory (PAT). We will also discuss how measurement of financial reporting effects the complexity
of financial statements in terms of fair value and historical cost methods. We will use supporting
evidence from peer reviewed journal articles to support our argument. We will then present our
findings and recommendations to the Corporate Governance Council Chairman of Australian
Securities Exchange (ASX).
The Opportunistic View
AGENCY THEORY
Agency theory refers to the relationship between the owners

The Role Of Auditor, Their Legal And Professional...
When we talk about the audit profession, we mean truthful and independent opinion about the
financial and economic sphere. In the narrow sense, audit is an independent test for the reliability of
the information in the financial statement of the company. Auditor is the oldest profession. The Latin
word "auditor" means "listener". It is generally agreed that the historical motherland of audit is
England, where in the XIII–XIV centuries, the basic principles of auditing, such as honesty,
competence and prudence were formed. In this essay, I would like to examine the role of auditor,
their legal and professional requirements, benefits and limitations, and explain why an auditor is
important.
Let us start by considering the facts that annual ... Show more content on Helpwriting.net ...
Internal audit helps to detect key risks of the business and what is being done to solve those risks to
help company to make an achievement and progress. Examples of those risks are: risk on company's
reputation, for instance, using a cheap labour force in foreign countries, or strategic risks, as
producing a large amount of items in comparison to resources which are available.
External audit is an independent body that works outside the company, which is auditing. They are
appointed by the company shareholders and focused on the financial accounts of the organization
and its risks. The main responsibility of external audit is carrying out the annual statutory audit of
the financial statements and making a conclusion whether financial positions of the company gives a
true and fair view. In addition, external auditors often examine and evaluate internal controls, which
controls risks of financial accounts to check effectiveness of their work.
As I already said, after the end of the examination of the books and accounts, auditors complete
their report where they must say if they agree that accounts shows a true and fair view. The phrase
"true and fair view" in auditing means that the financial statement of the company does not contain
inaccurate information and represents reliability of the financial results and position of entity. The
FRC (Financial Report Council) provides the

Financial Reporting : Private And Public Accounting
Private Company Financial Reporting
Background Information Private and public accounting have long been discussed and disputed in
regards to financial reporting. Since the Financial Accounting Standards Board (FASB) was created
in 1973, accountants have called for different accounting regulations for private and public
accounting sectors, as private companies do not have the resources to meet the complex
requirements of public companies. Private companies currently are not required by law to issue
annual or quarterly financial statements. Private companies do, however, have the option to apply
the U.S. Generally Accepted Accounting Principles (GAAP), cash basis, or accrual accounting to
their financial statements (James, 2012). When the FASB was created it had a mission statement "to
establish and improve standards of financial accounting and reporting that foster financial reporting
by nongovernmental entities that provides decision–useful information to investors and other users
of financial reports" (James, 2012). FABS was created as the financial accounting and reporting
rules for both private and public companies. However, since financial reporting was so complex,
there were other accounting organizations within FASB that stepped in to assist with creating
different accounting policies and procedures for financial reporting. The Financial Accounting
Foundation (FAF), through FASB, and the Governmental Accounting Standards Board (GASB)
assisted in developing

Facilitating The Adoption Of Ifrs
Facilitating the Adoption of IFRS/IAS International financial reporting standards (IFRS) are the
attempt of the International Accounting Standards Board (IASB) to globally harmonize accounting
standards and financial reports (Doupnik & Perera, 2014). Such standards are principles developed
by the IFRS foundation and the IASB whose goal are to implement international accounting
standards (IAS) which promote transparency, accountability, and efficiency of financial reporting to
ensure organizations draft financial reports that are comparable internationally (IFRS Foundation,
2015). In an effort to facilitate the adoption of IFRS, accounting professional bodies worldwide such
as the Institute of Chartered Accountants of Scotland (ICAS) have implemented initiatives to guide
and train their members in understanding the new standards adopted within their espective country.
The Institute of Chartered Accountants of Scotland. The Institute of Chartered Accountants of
Scotland (ICAS) is the Scottish professional body of accountants established by Royal Charter in
1854. The purpose of the ICAS is to educate and regulate accountants, provide examinations and
audits of organizations, maintain professional standards of accountants, and provide research for
changes in the accounting profession worldwide (ICAS, 2015). The ICAS is governed by a council,
oversight board, operation boards, qualification, technical policy, and member engagement board
who monitor the strategy, budget and

International Accounting Standards
International Accounting Standards
What is the International Accounting Standards Board? This paper will give a brief overview on the
history of the International Accounting Standards, starting with the role of the IASC Foundation, the
structure of the IASB and the number of accounting standards currently published. Next, it will
explain the steps in creating an international accounting standard in accordance with due process
and it will show the mailing address and phone number. Lastly, there will be a summary of two most
recent accounting standards issued by the IASB.
By the early 1970's businesses started expanding globally. With the expansions, companies were
finding their financials incomparable to other companies in other ... Show more content on
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In the publication they will state an overview of the issue, how to address the issue, view of the
IASB and an invitation for comment (International Accounting Standards Board, n.d.).
The fourth step is the publication of an exposure draft. This step is mandatory in the due process.
The IASB will consider the issues based on staff research and recommendations, comments receive
on any discussion paper and suggestions made by the SAC, working groups and accounting standard
setters. Once the issues are resolved there is a draft made up. Then the draft is voted on; once voted
on this draft will be published for public comment (International Accounting Standard Board, n.d.)
Step five, is developing and publishing the standard. After all comments are received on the draft,
the IASB will consider revising or not. When considering revising the IASB will check for
substantial issues that emerge during the comment period on the exposure draft that it had not
previously considered. They assess the evidence that has considered. They evaluate if they have
fully understood the issues and have made sure the people views are on the same issues. The IASB
considers the different view points in the draft and to make sure they have been reviewed in the
correct context for its conclusions (International Accounting Standards Board, n.d.)
The last step in developing standard is after the standard is issued. Once issued, there will be
ongoing

The International Accounting Standards Board
Introduction
Over the past few decades there has been a significant transformation in the global financial
structure. These remarkable changes are a result of increasing global competition, changes in
business and political climate, increasing technological advancements etc. Globalization in
particular has given the corporations and individual borrowers to look beyond the borders for
finance and investment opportunities. In order to protect these investors and to maintain the market
integrity a financial reporting framework was developed. This framework ensures high quality of
financial reporting and true and fair representation of general information for the users of financial
statements (SEC, 2000).
The framework serves as a guide for ... Show more content on Helpwriting.net ...
At the moment nearly more than 100 countries comply with the IASB standards. Moreover the
board is also responsible for the International Financial Reporting standards (Ready ratios, 2010).
The process for setting these standards comprises of certain stages such as: setting the agenda,
planning, developing the discussion paper and exposure draft and finally setting the standard. After
issuing the standards the board members hold meetings to discuss and review whether there are any
issues regarding its implementation (Foley,2004).
IASB was founded in April 2001, as a replacement for the IASC. It consists of 15 board members
from different countries, with a diverse financial reporting background appointed by a board of
Trustees (Members of the IASB, 2007). It is the main standard–setter for the countries that use IASs
for their financial reporting. USA on the other hand has its own set of standards (GAAP) issued by
the Financial Accounting Standards Board. But IASB and FASB since 2002 have been working
together focusing on making a converged set of high quality global standards. This will have a huge
impact on a number of elements, such as investors, stock markets, accountants,

Course Project Part Iii Essay
Financial Statements Bernard J Wyant Jr. Rasmussen College Author Note This research paper is
being submitted on March 10, 2013, for Tiffany Krogman, A340/ACG3085 Section 03, Advanced
Auditing Concepts & Standards. Financial Statements Financial Statements Prepared using
Chinese and GAAP Standards Kobyashi Maru prepares two sets of financial statements; one set
using Chinese standards and GAAP (as meager as those standards may be) and the other for use in
the US attempting to conform to U.S. GAAP. The Chinese financials contain a single footnote
describing the accounting principles used in the original books of entry. In the United States, the
public capital markets are regulated primarily by the US Securities and Exchange ... Show more
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The SEC issued its final rule on Acceptance from Foreign Private Issuers of Financial Statements
Prepared in Accordance with International Financial Reporting Standards without Reconciliation to
US GAAP on 21 December 2007. In May 2008, the AICPA's Governing Council designated the
International Accounting Standards Board (IASB) as the body authorized to establish international
financial accounting and reporting principles under rule 202 and 203 of the AICPA Code of
Professional Conduct. Below is an illustrative Independent Auditor's Report on financial statements
issued in conformity with IFRS. We have audited the accompanying statements of financial position
of X Entity as of December 31, 20X1 and 20X0, and the related statements of comprehensive
income, changes in equity and cash flows for the years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit

Financial Accounting And Reporting Of An Organization
Financial Accounting and Reporting course work 1
Title: Financial accounting and reporting
Student Name: Mengting KE
CEG Number: MK24366
Supervisor Name: Nilam Sultan
Date of submission: 14/02/2016
Total word count: 2042
Introduction
of an organization, like liabilities, assets and capital. Measuring, on the other hand, refers to the
budget of the company and it shows a true and fair view of the organization. Next, communicating
refers to the financial information which is transmitted to the people who need this information.
In other words, accounting is the language of business which can help stakeholders well
understanding the business and make the correct decision. Also, the purpose of financial accounting
is to provide useful information to others to show the value of a company or business. Financial
accounting aims to give information that others can use so that they can understand what the
company is valued at.
Financial Statement
There are three financial statements in

The Financial Reporting Council ( Frc )
The Financial Reporting Council (FRC) has recently released four new standards: FRS 100
Application of Financial Reporting Requirements; FRS 101 Reduced Disclosure Framework; FRS
102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and FRS 103
Insurance Contacts. FRS 100 basically describes who does what with the new UK GAAP. It
describes which principles apply to which type of business; when a business can apply the reduced
disclosure framework; and when a business should follow a statement of recommended practices, or
SORP. FRS 101 lays out a reduced disclosure framework for entities. Certain entities can choose to
use this reduced disclosure framework while creating their financial statements. FRS 102 ... Show
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This act modified the methods for many different subjects, such as financial and non–financial
reporting, company communications with shareholders, and the responsibilities of company heads.
The main role of the Act is to get managers to act in the best interests of shareholders. It additionally
requires managers to think about the long–term effects of decisions; the welfares of the business's
staff; the business's connections alongside suppliers, clients, and others; and the impression of the
company's procedures on the surrounding area. The Company Law Review Group was established
by the government in 1998 in order to contemplate ways to modernize company law. The Company
Law Review guidelines were the starting point for the modifications suggested by the Company
Law Reform White Paper released in 2005. Then the White Paper proposals turned into an outline
for a Bill, which then finally received official approval and passed in 2006,
(companieshouse.gov.uk, 2014). Some of the main effects of the Companies Act on private
companies are: an individual and simplified model of Articles of Association; individual
requirements for accounting and reporting; no requirement for a company secretary; no requirement
for an annual meeting; and simplified rules about share capital, (companieshouse.gov.uk, 2014). The
key benefits of the Companies Act for shareholders

Fasb Essay
International Accounting Standards Board (IASB)
The international Accounting Standards Board (IASB) is an independent, private sector that
develops and approves the body of the International Financial Reporting Standards (IFRS). The
IASB manages and controls the IFRS foundation. The IASB has a group of 14 members who
operates and manages the IFRS through daily meetings, community engagements, and speeches
about the IFRS. These members are experts in accounting standards, preparing, auditing, financial
reporting, and accounting education. Each member of the IASB covers each geographical area
including North and South America, Europe, Asia, and Africa. IASB has been delegated many roles
and responsibilities to operate the IFRS. They ... Show more content on Helpwriting.net ...
The Financial Accounting Standards Board is the independent and private sector that establishes
financial accounting and reporting standards for public, private, and not for profit organizations that
follow guidelines of the Generally Accepted Accounting Principles. For example, the Security
Exchange Commission (SEC) follows the standards set forth by the FASB. FASB is also recognized
by the Boards of Accountancy and the American Institute of CPAs. The FASB also works with the
Governmental Accounting Standards Board (GASB), The FAF Management and FAF Trustees to
provide useful and informational tools to investors to better their accounting standards and ensure
their financial reports are comprehended correctly. The FASB also include seven board members
and advisory board.
The Advisory board members share their views and experiences on multiple topics such as: The
Board agenda, implementation of new standards, and strategic planning. The FASB Advisory board
members provide resources to the FASB and its staff that include:
Financial Accounting Standards Advisory Council
Investor Advisory Committee
Not for profit Advisory Committee
Small Business Advisory Committee
Private Company Council
Emerging Issues Task Force
After reviewing the strategic plan on the FASB website, they identify four key factors that are used
to

Financial Reporting Council: the Use of a Sector Neutral...
Financial Reporting Council: The Use of a Sector Neutral Framework for the Making of Australian
Accounting Standards Introduction The Australian Financial Reporting Council (FRC) was
established on 1 January 2000 under section 225 of the Australian Securities and Investments
Commission Act 19891 (ASIC Act) for the purpose of overseeing Australia's accounting standard
setting process. One of the key functions of the Financial Reporting Council (FRC) is to provide
broad oversight of the processes for setting accounting standards in Australia. Specifically, the FRC
is responsible for determining the broad strategic direction for the setting of standards to be
followed by the Australian Accounting Standards Board (AASB). The AASB has ... Show more
Mr Simpkins' report was tabled at the FRC meeting held in Sydney on 22 June 2006. The FRC
agreed to make the report publicly available via the FRC web site. Matters for consideration The
FRC is seeking public comment on the following matters related to standard–setting, especially in
relation to the public sector and the other not–for–profit sector. Respondents are particularly
requested to provide the reasons for their views, whether supportive or critical of the identified
issues. The matters on which the FRC is seeking comment, which are reproduced in Part 8 of Mr
Simpkins' report, are: 1. In your view, how well are the needs of all users of general purpose
financial reports, including users of public sector and other not–for–profit entities in Australia, being
met? 2. Will the current approach of the AASB enable the standard–setter to respond to the more
challenging environment of the future and ensure the needs of public sector and other not–for–profit
users are appropriately met? 3. Do you consider that having a conceptual framework that is
applicable and appropriate to all entities is a necessary element in Australian standard–setting for all
sectors? What approach to establishing a conceptual framework(s) do you consider appropriate? 4.
Different approaches could be used to set standards in Australia. Which approach do you

The Financial Accounting Standards Board
The Financial Accounting Standards Board (FASB) was established in 1973 in order to create and
develop standards of financial accounting and reporting for the general use of the public and, in
particular, users of financial information including auditors, creditors and investors. This financial
information is standardized for greater clarity for the guidance and education of users (FASB org,
2009a). The primary purpose of FASB as a private and non–profit organization is to develop
Generally Accepted Accounting Principles (GAAP) in the United States. The FASB sets–up
accounting standards for public companies in the U.S. under the mandate of the Securities and
Exchange Commission (SEC). The FASB oversees the financial security; stability and ... Show more
Since 1973 the task of creating these GAAP standards has fallen on the Financial Accounting
Standards Board or FASB. Throughout its history the FASB has helped to protect stakeholder
interests by creating standards for financial reporting. Although FASB is held accountable through
oversight, it has been the subject of much scrutiny and criticism. Despite not always being looked
upon favorably, FASB remains the authoritative standard setting board in the United States. The
Securities and Exchange Commission, or SEC, was created by the Securities Act of 1933 and the
Securities Exchange Act of 1934. This inception was in response to the stock market crash of 1929
and the subsequent depression. The government felt that it was necessary to establish standards for
preparing and auditing the financial statements of publicly held companies. The SEC was given
statutory authority to set accounting standards and also given oversight over the activities of
auditors. Originally, the American Institute of Certified Public Accountants (AICPA) set the
guidelines that all accountants must follow. From 1936 – 1959 the Committee on Accounting
Procedure was the authoritative committee that was originally responsible for defining accounting
principles for the AICPA. In 1959 it was replaced by the Accounting Principles Board of the AICPA.
The Accounting Principles Board remained responsible for establishing accounting

General Accepted Accounting Principles
Accounting Principles i
Running head: GENERAL ACCEPTED ACCOUNTING PRINCIPLES
General Accepted Accounting Principles
Accounting Principles ii
Abstract
My paper is about the GAAP (General Acceptance of Accounting Principles) which were created by
the Accounting Principles Board (APB). The board was created by American Institute of Certified
Public Accountants (AICPA) in 1959. APB issued 31 Opinions from 1959 to 1973 and those
Opinions created GAAP. I think GAAP is interesting due to how many companies think they can get
away with financial dealings but get caught. I also think that GAAP is a system that really needs a
good looking at and maybe an overhaul. Some people say the GAAP is dead and should be shelved
... Show more content on Helpwriting.net ...
In the United States, as well as other countries practicing English common law system, the
government does not set accounting standards, in the belief that the private sector has better
knowledge and resources.
http://en.wikipedia.org/wiki/US_generally_accepted_accounting_principles
GAAPS are rules to be followed by every company and are shunned or misused by many more. That
said GAAP is only a set of standards. There is plenty of room within GAAP for unscrupulous
accountants to distort figures. Some say that the GAAP
Accounting Principles 3
standards distort the true economic reality, produce unreliable corporate standards and serve as an
unproductive compensation system.
GAAPS are not natural laws of physics or other sciences but instead are identified in response to the
needs of users and others affected by accounting. They are man–made rules that depend for their
authority upon their general acceptance by the accounting profession. (Pyle & Larson,1981).
GAAP include both broad and specific principles. The broad principles describe the basic
assumptions and general guidelines that accountants follow in preparing financial statements. The
specific principles provide more detailed rules that accountants follow in reporting results of various

business activities. The broad principles stem from observing long–used accounting practices were
as the specific principles are established more often by the

Financial Accounting And Reporting Of An Organization
Financial Accounting and Reporting course work 1
Title: Financial accounting and reporting
Student Name: Mengting KE
CEG Number: MK24366
Supervisor Name: Nilam Sultan
Date of submission: 14/02/2016
Total word count: 2042
Introduction
of an ... Show more content on Helpwriting.net ...
The Income statement is known as 'profit and loss statement'. Normally it shows the revenue and
expenses.
The Balance sheet is known as 'Statement of Financial Position). It is showing the assets, liabilities
and capital.
The Statement of cash flow is showing the changes in the entity's cash flow during the financial
period.
Main users of financial Statements
Users of financial statements are same as stakeholders. Stakeholders can be defined as people who
care about the company. But Main users of financial statements can divide into seven user groups:
Investors, Lenders, Suppliers and other trade creditors, Employees, Customers, Governments and
their agencies and The public. According to the financial statement, they can get useful information.
Investors are people who invest money in companies in order to make the profit or get advantages.
They need to know whether it has the risk to invest in this business or company, they need to
consider about does this company have an internal financial problem? Also, they need to know how
much they can get after they invested in this company.

Lenders are people who lend money or something to someone or a company. For example, Bank.
The Bank needs to know dose this company has the ability to repay the loans and interest. Also
potential lenders need to decide whether to lend or not.
Suppliers and other trade creditors. Suppliers are people who

The Committee For The Equity Funding Among Other Scandals
There were other developments that ensued. These included the designation of the Cohen
Commission to the Equity Funding among other scandals. Moreover, there was the institution of a
SEC Practice Section and a Private Companies Practice Section that was tasked to do peer review
and quality review. The promulgation of SEC's Accounting Series Release 250 that required
corporations to report to the ratio of non–audit to audit fees was also one of the developments.
Finally, there was the issuance of SSARs No. 1 that described assessment and compilation and
stipulated the form of reports that were to be submitted. 1980's to 1990's In collaboration with the
National Association of State Boards of Accountancy, the AICPA published the first bill that would
standardize the public accounting practice. This was legislated in the Uniform Accountancy Act.
Moreover, the Restructuring Professional Standards to Achieve Professional Excellence in a
Changing Environment was issued by the Anderson Committee as a reply to concerns regarding the
profession's competence to serve the public interest and maintain their trust. In the mid1980s, the
National Commission on Fraudulent Financial Reporting or the Treadway Commission detailed how
financial frauds could be curtailed or prevented and how auditors could minimize the "expectations
gap" amongst themselves and the public. In addition, the peer review program became compulsory,
as instructed by AICPA. Meanwhile, the AICPA Special Committee on

Contribution Of Accountancy On Sustainable Development
FINANCIAL ACCOUNTING THEORY | BBAC502 Group Assignment Topic # 1
CONTRIBUTION OF ACCOUNTANCY IN SUSTAINABLE DEVELOPMENT "Bookkeepers
will spare the world", said Peter Bakker, the Chief Executive of of the World Business Council for
Sustainable Development. The idea of sustainability includes working in a way that assesses an
association 's effects on the planet, its kin and what has to come. A developing number of
bookkeeping scholastics have been looking into social and ecological, or "sustainability"
bookkeeping and revealing for more than three decades and PhD understudies are pulled in to it in
(moderately) high numbers. For quite a while or more, globalization and industrialization gave ...
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Also, feasible advancement challenges–including moral difficulties, for example, defilement to a
great extent emerge from political and capital market disappointments. It is pressing for the
accounting associations to in like manner consider its dedication, direct and by suggestion, to
fulfilling the Goals. We need to persuasive how Accounting and the calling at this moment empower
achievement, and where there is chance to improve. One phase in the right course is to develop a
strong and arranged calling that can continue creating capable clerks with the critical aptitudes and
thoughtfulness regarding add to plausible and adaptable affiliations, capital markets, and economies.
Various IFAC part associations are thinking about their commitments to the Goals. To help all expert
bookkeeping associations (PAOs) consider their motivation, methodologies, and plans in this
specific circumstance, we highlight the most applicable Goals underneath and how we are as of now
adding to each. The contribution in Sustainability: Accounting has contributed by dealing with the
overall interest for accountants with an extent of capacities–concentrated also logically organization,
business, and endeavour related aptitudes. Giving applicable master direction and capacities is at the
heart of the calling. By giving continuing with change to clerks all through their callings, helping
them keep up relevance and a

Fasb and the Standard-Setting Process
Running Header: THE FASB
FASB and the Standard–Setting process
Name:
Institution:
Course:
Tutor:
Date:
Abstract Financial Accounting Standards Board (FASB) is a seven member board that consists of
accounting professionals who establishes and communicates financial accounting and reporting
standards known as generally accepted accounting principles (GAAP) in United States. The
standards' quest is to govern the preparation of the corporate financial reports and hence ensuring
transparency, credibility and understandability of the financial statements. To achieve these, there is
need to set guidelines that create uniformity in the preparation of the statements across the region. In
this paper, we will focus on the ... Show more content on Helpwriting.net ...
They are set to facilitate the preparation of high quality accounts in the United State so as to meet
the user needs and to enhance the growth in accounting methodologies. Additionally, they are set to
make it easy for entities to refer to the already set standards in preparation of their financial
reporting. As such and considering their benefits to the economy, because they create uniformity in
the financial reporting, they facilitate the transfer of labor across the regions in the United States.
Besides, by making the presentation of the statements easier and understandable, the users of
financial statements are able to make their rational investments and analytical decisions regarding
the companies issuing the report. And more importantly, by enhancing understandability,
comparability, relevance and reliability in the preparation of financial statements, potential investors
are able to assess companies' financial position for their rational economic decisions.
Role of ethics in financial reporting Ethics in financial reporting is all about maintaining the
truthfulness and fairness of the financial position of the entity in the financial statement and in
conformity with the laid down accounting standards. Since they present all data relating to the
historical, current and

IFRS Adoption Impact Local Government Financials

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