Financial Reporting And International Accounting Standards Essay

Financial Reporting And International Accounting Standards Essay

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The IASC Board approved the IASB (International Accounting Standards Board) Framework ( in April, 1989) which was a successor of the IASC Board, and it accepted its Framework in April 2001 (Wells, 2011)[ Wells, M J. C., (2011). Framework-based Approach to Teaching Principle-based Accounting Standards., Accounting Education: an international journal., 20(4), 303-316.]. International standards are developed by IASB which are named International Financial Reporting Standards (IFRS). Although IASB took the place of IASC with its accounting standards, its IAS (International Accounting Standards) is enforced by IASB until now. The conceptual framework is helpful when it is used to develop the setting of International accounting standards. First of all, the definition of conceptual framework provided by Melville (2014, p17)[ Melville, A. (2014). International Financial Reporting.(4th ed.). Edinburgh Gate: Pearson Education.], the author defines that a conceptual framework for financial reporting is made up of basic principles which strengthen financial accounting and hence be a reasonable basis in theory in developing accounting standards. There is a Conceptual Framework for Financial Reporting developed by IASB (i.e. the Conceptual Framework), which is used as an example. There are several advantages can be listed as followings: First of all, as for its own intentions, the conceptual framework developed by IASB due to one of its main purposes is to provide assistance in the development of future international standards as well as the review of existing standards (Conceptual framework for Financial Reporting, 2010). Secondly, as for its content, the conceptual framework clearly provides definitions about the rules which consist of the it...


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...e the international accounting and auditing standards of Western originally into the very different cultural environment of today’s ‘socialism market economy with Chinese characteristics’. Besides, as the result of the fairly crucial stages of accounting’s development in the West, which had been generated are not followed by Chinese history in advance through a similar way (Hoskin, Ma & Macve, 2014[ Hoskin, K., Ma, D., & Macve, R. (2014). Contesting the indigenous development of ‘Chinese double-entry bookkeeping’ and its significance in China’s economic institutions and business organization before c.1850. LSE working paper
]). Therefore, it creates an challenging situation for future research to translate the contents of IASB framework internationally based on its understanding into China which has one of the oldest civilisations in the world.



















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Financial Reporting And International Accounting Standards Essay

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