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Accounting Theory and Current Issues | Assignment sample

   

Added on  2021-02-21

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Accounting theory and current issues
Accounting Theory and Current Issues | Assignment sample_1
AbstractThe Report has described the importance of conceptual framework of financial reporting.Further, it has compare and contrast two countries that is Australia and India on the basis ofcauses behind adoption of IFRS, Transitional issues and challenges faced by companies,advantage gain by reporting entities due to adoption of IFRS. It has also explain whetheradoption of IFRS is successful and recommendation for keeping international standards relevantin both the countries.
Accounting Theory and Current Issues | Assignment sample_2
Table of ContentsAbstract............................................................................................................................................2INTRODUCTION...........................................................................................................................41) Relevance of conceptual framework of financial reporting....................................................42) Compare and contrast implementation of IFRS......................................................................63) Whether adoption of IFRS is successful in both the countries................................................94) Recommendations to the accounting bodies of Australia and India to keep IFRS relevant inthe countries...............................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Accounting Theory and Current Issues | Assignment sample_3
INTRODUCTIONAccounting theory refers to the logical reasoning related with set of principles in broadway that helps to give a general frame of reference through which accounting practice can beevaluated and it supports the development of new procedures and policies. It includes accountingpractices and study of historical methods of accounting that are used in present financialapplication. International Financial Reporting Standards (IFRS) is defined as set of rules that aredeveloped to ensure that financial statements will be comparable, transparent and consistentaround the world. The Report will outline importance of conceptual framework of financialaccounting. Further, the report will describe comparison between Australia and India on the basisof the basis of reasons for adopting IFRS, challenges faced by the companies in adopting IFRS.Moreover, the report will explain benefits of adopting IFRS etc. Whether adoption of IFRS wassuccessful in both the countries and recommendations to national accounting setting bodies toensure the need of users and all sectors of the economy etc.MAIN BODY 1) Relevance of conceptual framework of financial reporting.Conceptual Framework of financial reporting refers to the various types of guidelines andrules that are developed for recording different types of transactions and financial activities. Itcan also be defined as the theory that provides details of basic reasoning that underline financialreporting and financial statement in general. Further, it defines the users and objectives offinancial statements. The Conceptual Framework was revised by International AccountingStandards Board (IASB) in joint project with Financial Accounting Standards Board (FASB)because some important areas are not covered in earlier framework, guidance is not clear in someareas and some aspects of the Conceptual Framework is out of date (Schroeder, Clark andCathey, 2019). The joint project helps to improve financial reporting through update, completeand clear concepts. Conceptual Framework identifies both that is potential investors and existinginvestors. Further, the information will help to determine management's stewardship of theresources of reporting firm. As per the view of Macve (2015) Conceptual Framework for Financial Reportingcontains the concepts that underlie International Financial Reporting Standards (IFRS) and ithelps to improve consistency in standards of financial reporting. The underlying assumptions ofthe framework are definitions of financial reporting , need of information by reporting entity and
Accounting Theory and Current Issues | Assignment sample_4

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