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Advanced Financial Accounting - Sample Assignment

   

Added on  2021-05-31

10 Pages2147 Words40 Views
Running head: ADVANCED FINANCIAL ACCOUNTINGAdvanced Financial AccountingName of the StudentName of the UniversityAuthor’s Note

1ADVANCED FINANCIAL ACCOUNTINGTable of ContentsPart A...............................................................................................................................................2Part B...............................................................................................................................................3Public Interest Theory..................................................................................................................3Capture Theory............................................................................................................................4Economic Interest Group Theory of Regulation.........................................................................4Part C...............................................................................................................................................5Part D...............................................................................................................................................6Requirement [a]...........................................................................................................................6Requirement [b]...........................................................................................................................6Requirement [c]...........................................................................................................................7References........................................................................................................................................8

2ADVANCED FINANCIAL ACCOUNTINGPart AQualitative Characteristics: The qualitative characteristics of financial reports are the majorcontributors towards the improvements of the financial reporting as the helps the users of thefinancial statements in making effective investment decisions. There are both the fundamental aswell as enhancing qualitative characteristics. The fundamental qualitative characteristics arerelevance and faithful representation (aasb.gov.au 2018). On the other hand, the enhancingqualitative characteristics are comparability, verifiability, timelines and understandability. Opinion of Geoff Roberts: According to the statement of Mr. Roberts, Former Head of Financeof AXA, there has not been any question from the fund managers and investment analysts for theIFRS adopted financial adjustments. It implies that they do not face any problem inunderstanding the financial adjustments as per IFRS in order to ascertain the financialperformance and position of the business organizations. It also implies that the adoption of IFRShelps the users in gaining the required understandability on the financial information of theorganizations. Thus, the above discussion shows the dissatisfaction of ‘understandability’characteristic by IFRS reporting framework (Chen et al. 2018). Opinion of Terry Brown: According to the opinion of Terry Brown, Finance Director ofWesfarmers, the result would be the misinterpretation of the financial statements of thecompanies in case the analysts try to analyze the IFRS adopted financial statements in theabsence of proper technical knowledge. This situation can be relate to the verifiabilitycharacteristics of financial reporting as this characteristics helps to understand various financialaspects of the companies with the help of sufficient knowledge and independent observation. Itcan be seen that the absence of technical knowledge will contribute towards the misinterpretation

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