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Contemporary Issues in Accounting 2019 (pdf)

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Added on  2021-02-19

Contemporary Issues in Accounting 2019 (pdf)

   Added on 2021-02-19

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Contemporary Issues inAccounting 2019
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TASK1. Convergence to IFRS is taking place in Australia and what this means for the US, assumingUS GAAP does not converge:Acceptance of global standards issued by SOX, Globalisation effects, SEC or Securitiesand Exchange Commission as well as the fiscal and economic of Global financial crisis in recenttimes have put pressure on a lot of countries, such as the US, to remove the discrepancy betweenIFRS and GAAP. Such circumstances leads to accounting diversity across the world as well asintegration of GAAP norms with IFRS has a significant effect on corporate governance,shareholders, equity markets, financial experts and the setting of accounting principles.Furthermore, the emergence of accounting standards is altering the perceptions of CPAs andCFOs towards the harmonising of global accounting, influencing the performance ofinternational accounting standards and the attempts taken towards the GAAP and IFRS normsintegration goal (Wu and Zhang, 2019). As a worldwide reporting medium, the InternationalFinancial Reporting Standards (IFRS) aim to bring about convergence in the manner companyaccounts are structured and reported worldwide. The basic distinction between IFRS, theGenerally Accepted Accounting Principles (GAAP) of other nations and US GAAP are theconceptual frameworks on which these requirements are based. GAAP is therefore created onrule-based structure in few nations, including the US, while IFRS is based on a principle-basedarrangement. Such norms are qualitative in nature as well as vital to apply them to capture thefinancial substance that underlies a transaction.The primary distinction between GAAP and the IFRS is one perspective: the GAAP isbased on the rules, whereas the IFRS is based on principles. The GAAP comprises of acomplicated collection of guidelines trying to lay down rules and requirements for anycontingency, whereas the IFRS starts with the goals of excellent advertising and then offersadvice on how the particular goal applies to a specified scenario. A amount of respondents areaffected by convergence and resulting shift in reporting and accounting rules at internationalstage. The International Accounting Standards Board (IASB) is seeking a viable alternative toreduce the current difficulty, dispute and misunderstanding caused by incoherence and theabsence of standardized financial reporting standards (Lin and et.al, 2019).
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