Analysis of Advanced Financial Accounting

Running Head: ADVANCED FINANCIAL ACCOUNTING
ADVANCED FINANCIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

1ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Answer 1)...............................................................................................................................2
Answer 2)...............................................................................................................................4
Answer 3)...............................................................................................................................6
Answer 4)...............................................................................................................................7
Conclusion..................................................................................................................................8
Reference..................................................................................................................................10

2ADVANCED FINANCIAL ACCOUNTING
Introduction
Effectiveness in the communication of the information in the financial statements
contributes to the good decisions of investments as well as lower cost of the capital for the
organizations. Better communication in the financial reporting helps in highlighting the
importance as well as common themes of the number of projects of International accounting
standard board(Iasplus.com. 2019). The projects are designed for helping to make the
financial statements much more useful as well as improve the way by which the
communication of financial statements is done to the users of the financial statements. This
happens because of the poorly presented information in financial statements; the investors
have faced difficulties as well as time consuming for identifying the useful information.
Theboard makes an effort for contributing towards making the communication in the
financial statements of the companies more effective (Ifrs.org. 2019).
Therefore, under this assignment, discussion will be done on the reason regarding
decision of IASB for undertaking the project for the purposes of improving communication
of the existing information, which are provided in the financial statements. Moreover,
discussion will be done on the three major concerns about the disclosures of the information
in the financial statements that are referred as disclosures problems. Further, discussion will
be done on amendments of IAS 1 and IAS 7. Lastly, discussion will be done on the how
materiality helps in affecting disclosures and presentations of the information in the financial
statements.
Discussion
Answer 1)
IASB Decisions for undertaking Project for Improvement of Communication of
Information in Financial statements

3ADVANCED FINANCIAL ACCOUNTING
Financial statements are the tools for the managers of the company for
communicating with the investors.In order to make sure regarding the effectiveness of the
communication as far as possible, IFRS has taken fresh look on the fact that how the
presentation is done of the financial information(Iasplus.com. 2019). IFRS aims to bring
efficiency, transparency as well as accountability to the financial markets all around the
world. For setting up of the strategy as well as working the plan for carrying out the goals as
well as mission, they obtain the valuable inputs by the help of periodically carrying out the
projects on different issues (Chenget al. 2014).
Financial statements is not most of the time reader friendly documents, even for the
financial professionals, if there is lack of the comparability between the statements from the
different companies as well as lack of the transparency means that the analysts and the
investors needs to dig deep for finding out the information required by them (Tokar 2015).
The projects undertaken by the IASB is disclosure initiative projects for the aim of
improvement in the communication of financial reports. IASB has made the proposal for
development of the set of the principles of the effective communication. There has been
identification of the seven principles based on which financial reports should be prepared.
These principles includes entity specific, free from any unnecessary duplication, clear and
simple, comparable, organised for highlighting matters that are important, in the appropriate
formats as well as linked to the related information (Sunder 2016). The standards of IASB are
perceived as high quality and are having the benefit in relation to recognition as well as
measurement. Higher quality as well as financial information that is IFRS complaint is
necessary but it is not sufficient for the financial reporting for achieving their objectives of
communication(Iasplus.com. 2019). The valuable information sometimes is drowned out by
the disclosures of “tick the box” as well as voluminous but the poorly presented and
organized financial data. There are certain companies who present rosier picture of their