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ADVANCE FINANCIAL ACCOUNTING 8 8 Advance Financial Accounting Student Name University Name

   

Added on  2021-05-31

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Running head: ADVANCE FINANCIAL ACCOUNTINGAdvance Financial AccountingStudent NameUniversity Name
ADVANCE FINANCIAL ACCOUNTING 8 8 Advance Financial Accounting Student Name University Name_1

ADVANCE FINANCIAL ACCOUNTING2Table of ContentsAnswer to Question 1.................................................................................................................3Answer to Question 2.................................................................................................................4Question 3..................................................................................................................................6Question 4..................................................................................................................................7References..................................................................................................................................9
ADVANCE FINANCIAL ACCOUNTING 8 8 Advance Financial Accounting Student Name University Name_2

ADVANCE FINANCIAL ACCOUNTING3Answer to Question 1The Use of financial reporting standards led the companies to enjoy additional benefits. Themain motive of financial statements is to provide a true and fair view of the business to theusers. In addition to this, another main objective of financial statements is to provide all thenecessary information to the respective users. Adaptation of financial reporting standardshave increased the quality of financial statements and also helped the management of thefirms to take economic and financial decisions related to the operations of the firm. Thequalitative characteristics of conceptual Framework are in the form of faithful informationrelevancy comparability, understandability and timelines. It is of utmost importance for thefirms to disclose relevant information in their financial statements. Comparability reflects thatthe investors can compare the financial statements of one organization with the other one.Timeliness and faithful information reflects that decisions can be taken on time based on theinformation (Dye, Glover and Sunder 2014). In the given article financial accounting standards have been criticized by the users. Thecompanies spend huge amounts in the preparation of financial statement. However it has beenseen that adoption of IFRS have been negative for the organisations. However the concept offaithful information have increased complexities in the preparation of financial statements bydifferent organizations. The factor relevance have declined the quality of information in thefinancial statements. The investors are unable to extract information from financialstatements due to Complex nature of IFRS they are also unable to compare how variouscompanies. The presentation of financial statements with implementation of IFRS makes itdifficult for the investors to understand it effectively (Graham et al. 2017). Therefore, thequalitative factor of understandability is also not fulfilled with the implementation of IFRS.Apart from this, millions of money have been invested to adopt IFRS, which further resultedin increase of operating expenses of the organizations. This can be considered as another
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