Financial Accounting Standards: The Guidance And Standardization Of Accounting Standards

965 Words2 Pages
bulb-icon

Recommended: Major differences between ifrs and gaap

Financial Accounting Standards For the guidance and standardization of the accounting practices, a principle is put up, which is known as accounting standards. There are two groups of accounting standards, which are now a day concerned around the globe for the implementation of the accounting standards. They are the Generally Accepted Accounting Principles (GAAP) and IFRS. It is important that the financial organisation should be employing accounting standard because it helps the two key bodies in the organisation, that are the accountants and the decision makers, in understanding and analysing the financial information. Moreover, ensure proper and meaningful communication between them. For quite a long time, a wide assortment of formal accounting standards were produced in the United States and around the globe. Japanese accounting standards advanced uniquely in contrast to those in Australia while Australian principles were not predictable with those in the United States. In prior times, such nation by nation rules brought about couple of issues on the grounds that most organizations worked exclusively inside their nation 's limits. During the previous ten …show more content…

Two of the main legislations concerned in this regard included Companies Act and European Commission Directives (EC Directives). These two are said to be having a high influence on the formation and implementation of the financial standards. This is because they are made in accordance to the salient features included in these legislations. In these, the companies act 1985 includes the legal duties held by the auditors. This makes the auditors to work in accordance to the law while the implementation of the financial standard and hence produce the most appropriate and meaningful results through

Show More
Related

  • Case Study Of Ligand Pharmaceuticals

    797 Words  | 2 Pages

    The specific obligations in this case would include monitor corporate governance activities and compliance with organization policies, and assess audit committee effectiveness and compliance with regulations

    Read More

  • Comparing Chicken Fried By Zac Brown Band And Living Room By David Yezzi

    1283 Words  | 3 Pages

    The song does have good rhyme scheme, which is a very important poetic element. Zac Brown band writes, “Well I was raised up beneath the shade of a Georgia Pine / and that's home you know / sweet tea, pecan pie, and homemade wine, where the peaches grow…” (5-7). Every other line rhymes with the previous. This is a good poetic element to have, considering rhyme is commonly related to many great songs and poems. This does not make up for the lack of other poetic elements, and the simplicity of the writing. The differences between the two pieces is still very vass. The two pieces have two totally different objectives, which makes them have different writing styles. Claire Dederer writes “Song lyrics do a fine imitation of poetry, but they’re not quite the same thing. Lyrics are a vessel, designed to hold a singer’s voice. Poetry is its own solid object” (Bad Poem, Great Song). To some, the dilemma is cut and dry, songs just can’t be poetry.

    Read More

  • Kid Rock, Fuel, and Buckcherry

    1008 Words  | 3 Pages

    the song to et something out of it.. I realized that songwriters do not write songs solely to

    Read More

  • FASB Accounting Standards Codification

    916 Words  | 2 Pages

    According to the FASB Accounting Standards Codification, goodwill is “An asset representing the future economic benefits arising from other assets acquired in a business combination or an acquisition by a not for profit entity...” (glossary). Goodwill is measured by the premium price we pay for a company; we calculate premium price by subtracting the amount we paid by the estimated price (Fair value) of the company and if we paid more goodwill is created. Goodwill is an intangible asset so it has an indefinite life because it cannot lose value over a specific amount of time. We test for impairment to find out if goodwill has kept its value or if it has declined and we test for impairment on an annual basis. However, goodwill in FASB Accounting Standards

    Read More

  • As/1101 Audit Risk

    609 Words  | 2 Pages

    The Public Company Accounting Oversight Board, by authority of the Sarbanes-Oxley Act of 2002, is responsible for the creation of auditing and the associated professional practice standards for registered public accounting firms to abide by when preparing and issuing audit reports. The auditing standards relating to audit risk, audit evidence, and the relationship of auditing standards to quality control are outlined in Auditing Standards 1101, 1105, and 1110. This block of standards enumerates the general concepts relating to auditing standards.

    Read More

  • IFRS Implications on Sector Neutrality in New Zealand

    961 Words  | 2 Pages

    Until late 2002, financial reporting standards (FRS) in New Zealand were developed based on a sector neutral approach. This meant a single set of accounting standards were applied to all entities regardless of which sector they were operating in. This was achievable because when FRS was created, the financial reporting standards board (FRSB) took into account that entities in the public sector, not-for-profit sector and private sector would be applying these standards. This included having to think about a broad range of transactions, different reasons for carrying out transactions, the readers of financial statements for all sectors, and the information that those readers needed (Brady, 2009). Not only did FRS account for the range of entities that would be applying the standards but it was also written in a language that was appropriate and made sense for all entities in each sector (Brady, 2009). However, since the decision to

    Read More

  • The Differences Between the GAAP and the IFRS Accounting Systems

    1089 Words  | 3 Pages

    In the world of international finance there are two major accounting systems; GAAP, which stands for Generally Accepted Accounting Principles, and IFRS, which stands for International Financial Reporting Standards. The United States prefers GAAP while the European market, as well as many other countries, prefers IFRS. By 2015 the Securities Exchange Commission is anticipating a total transfer to IFRS in the United States. Though the differences between GAAP and IFRS are few, they could affect accuracy of financial reporting throughout the world. It is important to understand the differences and similarities between both GAAP and IFRS if one is to globalize ones market (Logue).

    Read More

  • Accounting profit and True Profit

    996 Words  | 2 Pages

    Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254.

    Read More

  • Financial Reporting Practices

    745 Words  | 2 Pages

    Ethics within any industry and organization is vital for its success. When those ethics have been compromised, it can be detrimental to the organization. Within the health care industry, it is vital they adhere to the ethical standards that have been established by the federal and state governments. For ethical standards to be followed, the health care executives are responsible to establishing policies and procedures. Understanding the financial aspects of the health care organization such as, where exactly does health care spending goes and how to reduce the inefficiencies and financial waste within the system is also important. This paper will address the financial reporting practices and ethics within

    Read More

  • Ed Sheeran's Song The A Team

    235 Words  | 1 Pages

    This is a lyrical and narrative song because it tells a compelling sad story of a drug addict who would “go mad for a couple grams” as she is given with an escape “to the Motherland”. It doesn’t seem as if this song follows a set rhyme scheme, but often goes with a AABB, or a ABAB rhyme pattern. There is a metaphor which describes how the drug addict’s mental state is “crumbling like pastries”. The line “For angels to die” is an impactful allusion as angels are thought to be of messengers from

    Read More

  • Bruno Mars Analysis

    968 Words  | 2 Pages

    As a first album you would not expect a person to do so well and win so many music awards, that is why it caught me off guard when I first listened to this album. The album was well composed and was very well thought out, which led him to become very successful on the release of his first album. As a first album, I expected it to be just okay and have maybe one hit song. I also expected it to be a one hit wonder and not a Grammy winner. My expectations were completely wrong and he completely did the opposite of what I expected him to do. I chose to listen to this album because it was something new and it was a genre that I started to get to like before him. So, I decided to give his album a chance and I wanted to see the different music styles he puts towards his songs.

    Read More

  • Role and Evolution of The International Accounting Standards Board

    693 Words  | 2 Pages

    The main objective of the IASC was the development of International Accounting Standards, in an effort to reduce the differences in accounting practices across countries. Harmonization is the name given to the process of reducing differences in financial reporting practices and increasing comparability of financial statements in various countries. As such the intent of the IASC was to create a set of accounting rules that would be relevant and consistent to all countries ...

    Read More

  • The Purpose of Accounting

    632 Words  | 2 Pages

    According to business, or any organization, Accounting plays a major role in developing and growth of the business. Financial standards of the organization expected as the complexities of business growth and expansion. Hence determining the implementation of the standards can vary according to the type of industry, business or organization.

    Read More

  • Generally Accepted Accounting Principles

    1219 Words  | 3 Pages

    There are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards.

    Read More

  • Accounting: Accounting And Accounting

    841 Words  | 2 Pages

    The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.

    Read More

More about Financial Accounting Standards: The Guidance And Standardization Of Accounting Standards

Open Document