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Advance Accounting | International Financial Reporting Standards (IFRS)

   

Added on  2020-04-01

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Running head: ADVANCE ACCOUNTINGAdvance AccountingPage 1
Advance Accounting | International Financial Reporting Standards (IFRS)_1

ADVANCE ACCOUNTINGTable of Contents1) Memorandum..............................................................................................................................32) Letter...........................................................................................................................................7References........................................................................................................................................9Bibliography..................................................................................................................................10Page 2
Advance Accounting | International Financial Reporting Standards (IFRS)_2

ADVANCE ACCOUNTING1) MemorandumTO: All the Employees of Cruz Accounting Ltd.FROM: XYZCC: Senior Accounts ManagerDATE: 22 September, 2017SUBJECT: Issues with respect to initiative of disclosure undertaken by IFRSThe International Financial Reporting Standards (IFRS) can be regarded as the guidelines, whichare set for ensuring transparency in the style of financial reporting at the global level. These standards are infact set by the International Accounting Standards Board (IASB) (Rouse, 2017). During the year 2017, IASB was observed to pass disclosure initiative- principles (DP), so that it would be possible to improve the communication between the users of financial report and the ones who have prepared it. Precisely, the disclosure initiative provided better information regarding the financial performance to the users. IASB has focused on the agenda of enhancing the reporting standards for the period 2017 to 2021. The IASB proposes an inappropriate way of preparing financial statements that can lead to errors with respect to making investment decisions, as the investors may not be able to trace performance of a business. Moreover, the board propounded that adding irrelevant information in the final accounts involves loss of time and extra costs pertaining to the preparation of financial statements. Even, if relevant informationis provided in the financial statements, improper presentation can make it difficult for the stakeholders to correctly interpret the performance of the business firms (EY, p. 1-2). In paragraph 6.16 of the disclosure initiative, it is mentioned that the primary intention of this particular initiative is to enable the organizations to get adequate insights about the aspects that Page 3
Advance Accounting | International Financial Reporting Standards (IFRS)_3

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