Accounting in Context (Macquarie)

Running head: ACCOUNTING IN CONTEXT (MACQUARIE)
Accounting in Context (Macquarie)
Name of the Student:
Name of the University:
Authors Note:

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ACCOUNTING IN CONTEXT (MACQUARIE)
Contents
Answer to Q1:..................................................................................................................................2
Answer to Q2:..................................................................................................................................3
References:......................................................................................................................................5

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ACCOUNTING IN CONTEXT (MACQUARIE)
Answer to Q1:
National accounting boards of different countries are the members of IASB. IASB with
the support of its members continuously looks to improve the existing accounting and financial
reporting standards to achieve harmonization in accounting and financial reporting. The inherent
limitations of accounting and financial reporting make it almost impossible to formulate single
sets of internationally acceptable accounting and financial reporting standards (Camfferman and
Zeff, 2015). Thus, harmonizing the accounting and financial reporting standards is a complex
process. However, the continuous efforts by the IASB to formulate better and effective standards
to reduce the alternative accounting principles and policies has improve the process of
convergence over the years (Oulasvirta, 2014).
The reason for increase in the number of countries using IASs and IFRSs for accounting and
financial reporting purpose is mainly attributable to the efforts of IASB to harmonize the
financial reporting environment by using convergence process. Even the US is also moving
towards converging its GAAP with the IFRSs. Having a single set of accounting and financial
reporting standards such as IFRSs will go a long to improve the quality of financial reporting in
all across the globe. The IASB with its efforts has improved the process of convergence.
However, the process is a continuous process thus, efforts are still on to improve the process of
convergence continuously. Hence, IASB is certainly achieving its objective (Oulasvirta, 2014).
Answer to Q2:
The issues in De jure and De facto convergence are enumerated below:
Official endorsement: