Advanced Financial Accounting: Qualitative Features, Australian Government Decision, FASB Regulation, and Impact on Financial Statements

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced financial accounting
Name of the student
Name of the University:
Author note

1ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Answer A:..................................................................................................................................2
Answer B:...................................................................................................................................4
Answer C:...................................................................................................................................6
Answer D:..................................................................................................................................7
a:.............................................................................................................................................7
b:.............................................................................................................................................7
c:.............................................................................................................................................8
Reference:..................................................................................................................................9

2ADVANCED FINANCIAL ACCOUNTING
Answer A:
Qualitative features of an organisations need to be produced in the financial statement
so as to extend the benefit of the overall financial performance information of the firm. These
features basically made of fundamental qualitative features which are aimed to enhance the
qualitative topographies of the financial report (Barth 2015). Major components that comes
under the basic qualitative features are made of faithful depiction and relevance of the same.
Similarly, there are certain parts that are inherent in extending the qualitative features as well
as the comparability, timeliness, understand ability and verifiability. As per the given content
it provides light on the different individuals and opinions of the International Financial
Reporting Standards (IFRS) in order to enforcing the general principles (Tsalavoutas and
Dionysiou 2014). All the declarations in this report provides stress on the fact that there are
certain parts in the qualitative characteristics incorporated in the financial reporting section
are not inherent according to the individual decisions. Brief overview of the same are
mentioned below:
Geoff Roberts, the previous head of AXA Finance, has pronounced that no inquiries
are developed from the fund managers and the economic investigators for adjusting the
financial statements in order to have precise financial picture of the firms that are
accompanied as per the IFRS norms (Critique 2006). Due to this, they have no longer skilled
any problems while differentiating the financial articulations of diverse institutions along
with acquiring reviewing their money related performance in the market. Therefore,
fundamental affirmation are given through these perspectives, which recommend that
financial proclamations of the organization along with the IFRS have understandability and
equivalence. On this way, those two subjective highlights empower to improve the estimation
of financial information of the firms. However, it has been watched at present that the IFRS-
created economic articulations do not give in depth comprehension and volume of correlation

3ADVANCED FINANCIAL ACCOUNTING
in them. Because of this, the inadequacy can be seen in IFRS in the form of similarity and
understandability (Tsalavoutas and Dionysiou 2014).
As per the sentiment of Terry Brown, the finance director of Wesfarmers Limited
confined, the financial statement notes of the firms might be misunderstood, if the financial
analysts target to enlighten to them when they have no technical information about the IFRS
customary (Gattorna 2015). Verifiability is one more important qualitative feature of
financial reporting, which upsurges the financial reporting quality by sourcing possibility to
the customers in smearing their financial knowledge and observation in order to gain
information regarding the firm. The evaluation of the references to the cash associated
proclamations is a crucial angle as regards to the customers to realize the budgetary
exhibitions of the commercial enterprise associations. This indicates the ability of the
customers to assess the substance portrayed in the notes via the use of their notion and
gaining knowledge of, because the cash related explanations organized under IFRS wishes
extra distinguished specialised information. In view of the above appraisal, irrefutability and
understandability components of the subjective highlights are absent within the IFRS
announcing structure.
As per the point of view of the Commonwealth Bank CFO David Craig, the investors,
investors do not provide necessary amount of focus on the IFRS cherished financial
statements, as they are used to believe that, financial statements are acknowledged for
providing false information about the financial position and financial position of the
corporate entities (Skinner 2017). Under this scenario, it is necessary to ensure the faithful
showcasing and ensure relevancy of the financial information highlighted in the annual report
of the firm so as to produce positive impact on the investor. This will aid them to take proper
investment decisions and make their endeavours in the financial market accurate. If these
topographies are not present, then there will be no understanding about the financial