International Accounting Standards Board- Doc

   

Added on  2020-04-01

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Running head: CORPORATE REPORTINGCorporate ReportingName of the Student:Name of the University:Author’s Note:
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1CORPORATE REPORTINGTable of ContentsAnswer to Question 1:.....................................................................................................................2Answer to Question 2:.....................................................................................................................4Requirement 1:.............................................................................................................................4Requirement 2:.............................................................................................................................5Requirement 3:.............................................................................................................................8References & Bibliography:..........................................................................................................11
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2CORPORATE REPORTINGAnswer to Question 1:The International Accounting Standards Board is an independent body with a privateundertaking that is in charge of development and approval of International Financial ReportingStandards. In the year of 2001 the International Accounting Standards Committee was replacedby the International Accounting Standards Board.The International Accounting Standards Boardis the primary body implementingand issuing standards that are generally accepted worldwideand as mentioned in the question is almost accepted globally with a geographical diversity. TheInternational Accounting Standards Board (IASB) had amended a lot of accounting principles sothat the preparation of financial statements become proper and they are able to reflect a true andfair view of the financial or liquidity position of the company. With continued effortson the partof International Accounting Standards Board, it started making its own accounting standardsnamed International Financial Reporting Standards (IFRS). The standards of the IFRS are set bya group of experts that constitute of the IASB with enough practical experience to maintain aneasy to understand and transparent process while setting the standards. In the due process, thebasic points which are taken care of are London office broadcast of the public board meeting,live; publishing the agenda papers mentioning the future actions that might be implemented bythe board; outcomes of the board meeting are jotted down and circulated (Giner et al. 2016). While setting the standard the Board is required to maintain certain methods. In everyinterval of five years a detailed study is made and after consulting about the priorities the projectplan is designed. Each project begins with a research to know the issue and its probable situationand decipher the requirement of the standard. Sometimes public comments are also encouraged.As required the Board amends the standard or brings out something new after a full scope
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3CORPORATE REPORTINGresearch and discussion. Proposals for amendments and new insertions of standards are madepublic for consultation (Ames 2013). The Board members and the technical staff of IFRSFoundation consult with as many as stakeholders all around the globe to get further evidence.Issuance of standard is not the job actually, but its implementation that matters the most for theBoard otherwise the job may be futile. Thus it is very clear from the above descriptions thatsetting up financial reporting standards is not at all an easy task but the International AccountingStandards Board is in charge of regular monitoring and reviewing the quality of standardsimplemented. It is also evident from the above study that it is very natural that due to such caretaken countries worldwide will be very interested in implementing the financial reportingstandards (Christensen et al. 2015).The reason behind the adoption of financial reporting standards is that it results in betterdecision making by the management of the firm, it provides a clear and better understanding ofthe financial position of the firm and especially is of use to countries, which make a lot ofinternational investments.Unfortunately the United States is still reluctant to fully adopt IFRS in its financialreporting practices. The main reason is the lack of initiative on the part of the IFRS managementteam to implement an one in all universal accounting standard that has a strong hold on financeand is worthy enough to match the highly competitive environment of the United States (Barth etal. 2014). Another reason for the reluctance of United States is that any kind of mistake in therecording or any other part of the financial statements will directly pass onto the auditors. Thus itis very useful to implement such a set financial reporting rules that is absolutely free of errors.The IFRS fails to convince the United States that it is worthy enough to maintain this role. The
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