Understanding the Concept of Implementation of Accounting Standards

Added on - 25 Sep 2019

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Does this blog contains the concept describing how value relevance has evolved over the years?In preparation of financial statements, for the financial report making value relevance isessential. This concept helps to understand the implementation of accounting standards indifferent countries evolved over the years. The blog from this analysis, provide a positiverelationship among each of the explanatory proportion and the share prices of the companieslisted on the Nigeria stock exchange. That implies that the movement in accounting informationon earning, book value, dividends and cash flows from the performance can be used to predictthe share prices variation.Evaluation in value relevanceHow to value relevance has evolved over the years as transformation in the economy takes placefrom primary industry to services and information technology-based industry. Researchdiscovers that accounting relevance for earning has fallen and this condition rise towards the neweconomy analyzed accounting has lost the relevance. Considering the value relevance ofBlogWriting
2Blog Writingfinancial accounting information undertaken an example of Nigeria (Trend Analysis). It’s higherand lowers accounting proportion that could examine the various proportions about firmopportunities extent, ordinary least square regression was employed and alternative performanceestimate. This information about the accounting proportion in the new economy is veryimportant. The Nigeria financial accounting information study reveals that it does not follow thetrend during the period of study. The condition seeks out accounting proportion relevanceincreases and relevance of earning fall. The value relevance was weak during the political crisiscaused by the military dictatorship in the year 1992 to 1998. The global economic crisis from2005 to 2009, it was a peak in the other periods. Based on the research, it finds out that theinformation directly causes the securities in the capital market.US economy widely covered industrial area since then the accounting has not updated orchanged the familiar accounting in current era does not include performance measure that alsoincludes earning, does not provide extent to opportunities growth, valuation of intangible assets.The relevancy of accounting proportion evolved with proportion, more or less. Evolution invalue relevance implement the research and provide the perception of how to enhancedaccounting information, investors information use when the value provide a strong future forequity valuation. The information regarding performance estimate, opportunities extent andintangible asset valuation are not complete accounting information but this information considerrelevant to investors in the new economy.Relationship between equity pricing and accounting volume from 1962 to 2014 as annual basethesis provide value relevance and explain estimated relation. Earlier research provides linearrelation entirely and does not select concisely how future cash flows
3Blog WritingThe accounting quantity reflects net income and equity book value, the research considers thetrends in value relevance of accounting information include these values. Intangible asset aspectinvolves expenses of research and development cost, advertising expenses opportunities extentdetermine cash and revenue growth. Alternative performance estimate examines cash flow andrevenue and examines also examine the cost of goods sold, selling expenses, general andadministrative expenses, dividends, capital expenditure and total assets.Earlier research findings of accounting information have fallen while re-examination ofconclusion examines that. The condition does not expect the situation to fall because of moreaccounting quantity and flexible, non-parametric method of estimation employ. Whereas nofindings of the fallen situation in sample year or any decade excluding the 1990s, evidence invalue relevance, the concurrent technology impact.How every quantity contributes to the value relevance in accounting knowledge?The expectation from earlier research is that evaluation in value relevance to fall and equityvalue to increase. Our important question of research expects accounting quantity of intangibleassets, opportunities extent and alternative performance estimation to become relevant more.Considering the expectation of accounting quantity there seeks out the increase in the cost ofresearch and development, an intangible asset to increase,The objective of this blog is to explain the trend in the accounting information of the companyNigeria. It is relevant to mention that the financial statement is the only report used by theinvestors in the evaluation of corporate stock if it provides the important information to them; thetwo of the qualitative measures of the accounting information is relevancy and the reliability.
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