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Assignment on Corporate Reporting

   

Added on  2021-05-27

19 Pages2509 Words46 Views
Running head: CORPORATE REPORTING Corporate ReportingName of the StudentName of the UniversityAuthors NoteCourse ID
Assignment on Corporate Reporting_1
CORPORATE REPORTING1Table of ContentsAnswer to question 1:.................................................................................................................2Introduction................................................................................................................................2Discussion:.................................................................................................................................3Conclusion:................................................................................................................................6Answer to Case Study 1:............................................................................................................7Answer to 1:...............................................................................................................................7Adjusting Journal Entries:..........................................................................................................7Answer to 2:...............................................................................................................................8Answer to 3:.............................................................................................................................11Notes to Financial Statements:.................................................................................................11Answer to Case Study 2:..........................................................................................................15Answer to (i)............................................................................................................................15Answer to (ii):..........................................................................................................................15Answer to (iii):.........................................................................................................................16Reference List:.........................................................................................................................17
Assignment on Corporate Reporting_2
CORPORATE REPORTING2Answer to question 1:Introduction The anticipated benefits of having an international accounting standards areconsidered as convincing. The usage of one set of accounting standards by the organizationsacross the world possess the ability of improving the comparability and clearness of fiscalinfo and lowering the financial statements cost of preparations1. On implementing the singleset of accounting standards the capital participants would have the higher quality informationand can undertake better decisions. Hence, market distribute the funds more proficiently andbusinesses may attain a lesser cost of capital. The opinions have been laid down to back the decisions of IFRS for monetaryreporting of consolidated listed entities in the member’s states across the world. There areother jurisdictions that have cited the identical jurisdictions that have cited identical reasonsfor implementing the IFRS standards2. Reflecting on the demand for the higher qualitystandards the acceptance of single set of bookkeeping standards helps in improving thesuperiority and comparability of monetary reporting and promoting the expansion of thenation-wide capital marketplaces along with the mix of the international markets. 1Christensen, Hans B., et al. "Incentives or standards: What determines accounting qualitychanges around IFRS adoption?."European Accounting Review24.1 (2015): 31-61.2Li, Siyi, Theodore Sougiannis, and I. Wang. "Mandatory IFRS Adoption and the Usefulnessof Accounting Information in Predicting Future Earnings and Cash Flows." (2017).
Assignment on Corporate Reporting_3
CORPORATE REPORTING3Discussion: One of the central query is whether the adoption of IFRS have transformed availablemarket participants in a manner that it is beneficial for the market to be highly efficient whereIFRS are used. Evidences gathered have stated that variations in the market liquidity andbusinesses cost of capital as the method of gauging the influence of IFRS adoption3. Thereare large number of large scale evidences gathered have stated that the adoption of IFRSpromotes market liquidity by improving the introduction of IFRS. The adoption of one set ofglobal financial standard helps in lowering the cost of firms capital and an increasing thevaluation of equity that occurs before the official adoption date. As stated by numerous researchers the adoption of IFRS helps in benefiting thecompany with the help of reduced costs of capital resulting in increased disclosure andimproved information comparability4. According to evidences gained the effect of using theIFRS on share prices and trading provides unusual return on instability and trading amount.Research have decided that information subjects of incomes statements have resulted inenhanced IFRS adoptions by lowering the lag in reporting, increasing the analyst followingand improving the foreign investment. There are several studies that have discovered the effect of IFRS for marketparticipants5. In respect to stockholders studies have provided the evidences that numerous3Cascino, Stefano, and Joachim Gassen. "What drives the comparability effect of mandatoryIFRS adoption?."Review of Accounting Studies20.1 (2015): 242-282.4DeFond, Mark L., et al. "Does mandatory IFRS adoption affect crash risk?."TheAccounting Review90.1 (2014): 265-299.5Florou, Annita, and Urska Kosi. "Does mandatory IFRS adoption facilitate debtfinancing?."Review of Accounting Studies20.4 (2015): 1407-1456.
Assignment on Corporate Reporting_4

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