Current Development in Accounting Thought PDF
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Added on 2020-03-16
Current Development in Accounting Thought PDF
Added on 2020-03-16
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Current Development in Accounting Thought1
ContentsAnswer 1....................................................................................................................................3Identification and Discussion of Key issues Reported in the News Article..............................3IFRS Foundation reputation research study...........................................................................3Long development and consultation phases...........................................................................4Ebiquity..................................................................................................................................4IFRS Foundation successful...................................................................................................4Linkage of the major issues reported in the news article to topics and theories covered inACC518......................................................................................................................................5(i)Accounting theories applicable to the issues......................................................................5ii) Issues evaluation through the use of theories....................................................................5(iii) Significance of Issues......................................................................................................6Critical evaluation of the underlying assumptions of the accounting theories..........................6Answer 2....................................................................................................................................7Major issues covered in the Exposure Draft..............................................................................7Explanation of Exposure Draft Issues on Basis of Public Interest Theory................................8Agreement and Disagreement of the parties who have submitted the comment letters............8Analyzing the comment letters for or against the regulations..................................................11Application of Accounting Theories to Comment Letters Issues............................................12Theories Assumptions in Relation to Exposure Draft and Comment Letters..........................12References................................................................................................................................132
Answer 1The present report is developed for providing an understanding of an accounting issueselected from a news article. The report is directed to the CEO for providing an insight intothe issues identified in the article with the support of theoretical analysis. The article selectedfor the purpose is ‘IASB urged to streamline standards-setting’. Figure 1: IASB urged to streamline standard-setting (Sweet, 2017)Identification and Discussion of Key issues Reported in the NewsArticleIFRS Foundation reputation research studyThe trustees of the IFRS foundation conducted an independent research for analyzingthe weakness in the present IFRS Standards. The study has recommended some3
improvements in the IFRS standards so that they can be easily applied and modified as perthe changing business environment.The major weakness identified in the article regardingthe IFRS standards are their complexity, largely time-consuming in developing standard-setting process and greater need for responding quickly to external business environment(Sweet, 2017). Long development and consultation phasesIn this context, there has been large scope of development required in the IFRSstandards as advocated by the independent research findings carried out by trustee’sfoundation. This can be done through improving the process involved in adoption ofstandards that will result in improving the speed of IFRS adoption process. The reputationalresearch study has inferred that almost half of the interviewees has regarded that IFRSfoundation has not maintained an adequate balance between quality of due process and speed.The IFRS standards are also regarded to be too technical rather than being technical. Thelong-tem development in the IFRS standards can be advocated through developing simple,practical and workable standards that will help in improving the flexibility of the standardsthat are regarded to be too complex and technical. The IFRS stakeholders are advocating theFoundation to recommend a positive action in this area for better networking and adoption ofthe standards through undertaking events, training and education initiatives. The adoption ofIFRS standards is a very complex and costly process thus posing challenge in front of manysmall-sized business entities to effectively comply with hem. In addition to this, the IFRSstandards are very rigid and therefore the business corporations adopting them are not able toimplement new accounting methods as per the changes in business operations (IFRSFoundation, 2017, p.15). EbiquityThe research study was carried out between February and May in 2017 by Ebiquitythat is regarded to be an independent research agency. The research method adopted byEbiquity in this context is interviewing 50 senior stakeholders from across the world. Thefindings obtained are supported by the online surveys of members of IFRS foundation such asadvisory bodies, that are, IFRS Advisory Council and the Accounting Standards AdvisoryForum (Sweet, 2017). IFRS Foundation successfulThe research has regarded the development of IFRS foundation to besuccessful in achieving the public interest through developing a better understanding of itskey stakeholders. The research ahs also regarded IFRS for promoting transparency inbusiness operations and also achieve higher rank in carrying its functions independently andprofessionally. The IFRS has provided encouragement to all the participants involved in theresearch process to talk openly for producing informative results (IFRS Foundation, 2017,p.16). 4
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