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Financial Accounting Reporting
Financial Accounting Reporting
Financial Accounting Reporting
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Recommended: Financial Accounting Reporting
Introduction/Overview of the first three weeks of the Module
Week 1 provide background for the financial reporting module and refreshes basic accounting concept in Finance and accounting for manager module. It provides detailed differences between cash flow and accrual accounting and a critical analysis of preferred methods as well as examines the standard setting processes and challenges. Week 2 is a follow up to week1 as it dwells extensively on economist approach to income and asset valuation, accounting for price-level changes and income recognition models. It looks at computation of profit from both accounting and economics view and the relationship between the two.
Week 3 was a follow up on weeks 1 and 2 studies; it examines both traditional and modern way of interpreting financial statements and assessing the financial health of an organization. It also introduces the challenges and benefits of financial reporting on the internet.
These 3 weeks studies put together has captured important areas of financial reporting that are of practical use in modern accounting environment. This paper therefore ride on these to examine the article by Larson & Street (2004) on the progress and impediment identified by top accounting firms’ survey during International Financial Reporting standard( IFRS) convergence process in an expanding Europe.
Overview of (Larson & Street, 2004) article
In 2002, European Union (EU) requires all members’s listed companies to adopt and prepare consolidated accounts using International Financial accounting standard (IFRS) effective 2005. This is a big event for International Accounting Standard Board (IASB) which makes boosted their status and legitimacy as a standard setting body. Larson & Stre...
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...& Bhutani,2012), etc., Jermakowicz & Gornik-Tomaszewski( 2006,p.192) observed that “there is general consensus that the transition to IFRS is a costly, complex and burdensome Process”.
Nigeria set a road map for the adoption of IFRS in 2010 with 2012 as the commencement of convergence commencing with public listed entities with other public interest entities on January 2013 and Small and Medium-Sized Entities on January 01, 2014. A lot of challenges was faced during the process of implementation. Madawaki(2012, p.156 ) argued that these challenges include knowledge gap, poor enforcement and compliance system, tax system and implications, legal system and poor awareness level.
To provide solution to these challenges which are evidences in all jurisdictions that have implemented IFRS, the cooperation of stakeholder is imperative in the solution to all impediments.
Codification was needed to simplify access to ASC, improve accuracy of research, mitigate risk of non-compliance, streamline the research process, provide real-time updates, and assist with IFRS convergence
We would love for these impacts to always have a positive impact; however the impact can affect a company in a negative manner. “ Researchers Holger Daske, Leuz Hail, Christian Leuz and Rodrigo Verdi examined 3,100 firms in 26 countries mandated to adopt IFRS in “Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences”. The study examines the economic effects of IFRS, both early and mandated adoption” (Bolt-Lee). They were able to conclude that a company’s adoption of IFRS creates strong economic benefits in countries with rigid regulation over financial reporting. The article also explains that these benefits include an increase in the stock’s market value, an increase in market liquidity, and a lower cost of capital. Companies with major differences between GAAP and IFRS standards show the greatest benefit when supported by a strong regulatory
Marshall, D.H., McManus, W.W. & Viele, D.F. (2011). Accounting: What the numbers mean (10 ed). New York, NY: The McGraw-Hill Companies, Inc.
This case assignment will discuss managerial accounting and different income statements a business owner may use internal to the company. Divided into two parts, part one will discuss and analyze the difference between managerial and financial accounting, the needs for financial information used for internal purposes. Additionally, it will focus on the managerial accounting profession and how its roles have changed in today’s business. Expanding on the profession, it will comment on the Certified Management Accountant (CMA) certification and how it differs from the CPA certification. Part two of this assignment
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).
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
Financial reporting delays have long been a problem for companies (Abbas, 2009). In some instances reporting delays reach crisis levels, so that owners and shareholders, as well as senior management, do not have accurate and timely financial information on company performance (Pasquali, 2012). It is also not uncommon, as in Sahira’s case, that the data needed for financial reporting has not kept up with technology, requiring manual input or manipulation of the data, or “re-keying” of data into the company’s accounting software to produce financial reports (Financial Executive, 2012), and thus delaying the timeliness of financial reporting (Pasquali, 2012), and often resulting in errors in reporting (Karabi...
Accounting is a way to provide information that” identifies, records and communicates the economic events of an organization”(Weygandt, J., Kimmel, P., & Kieso, D., 2012). In order to ensure that businesses and accountants produce similar financial statements, they are held to generally accepted accounting principles or GAAP standards (Weygandt, et.al. 2012). In addition to GAAP standards, the Sarbanes-Oxley Act of 2002 was passed by Congress to help reduce unethical behavior by large businesses (Weygandt, et. al., 2012). The combination of the two provides reassurance to stakeholders or interested parties that the financial statements are uniform and provide reliable data. This is of the utmost importance for a business to be successful.
Dutta, Sunil, and Stefan Reichelstein. Accrual Accounting for Performance Evaluation. Research Paper Series 1886 (2005): 1-35. Print.
One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...
The accounting principles are constantly changing. Currently, there is a struggle between accountants who want to use the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Many companies in the United States prefer GAAP over IFRS because GAAP is more rule based, whereas IFRS is principles based. In my accounting classes, we focus on GAAP. If the U.S. decides to switch to IFRS, I will not be as well-equipped when I enter the work force. The best way to overcome this threat is to continue to monitor the situation and see if the U.S. makes the switch.
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:
Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
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.
The third organization that helps to regulate the accounting standards is the IASB. “Our mission is to develop, in the public interest, a single set of high quality, understandable and international financial reporting standards (IFRSs) for general purpose financial statements”(IASB 2008,¶ 1). The IASB consists of a board that is made up from nine different countries with the sole purpose of expanding accounting standards. Their main hope and goal is to one day that there will be only one set of accounting standards that will be used throughout the world.