THE INTERNATIONAL FINANCIAL REPORTING

Running Head: INTERNATIONAL FINANCIAL REPORTING
INTERNATIONAL FINANCIAL REPORTING
Name of the Student
Name of the University
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1INTERNATIONAL FINNACIAL REPORTING
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Differences in Financial Reporting........................................................................................2
Accounting for the Tangible and Intangible Fixed Assets.....................................................5
Creative Accounting.............................................................................................................10
Conclusion................................................................................................................................13
Reference..................................................................................................................................14

2INTERNATIONAL FINNACIAL REPORTING
Introduction
Financial reporting is consisting of all the entity’s communication of the financial
information to the people outside of entity. It is the financial results of entity, which are
released to its pubic and stakeholders. IFRS are the accounting standards, which are issued by
“International Accounting Standards Board” with the objective to provide common language
of accounting for increasing transparency in financial information presentation. IASB is the
independent body, formation of which was during 2001, with the sole responsibility to
establish IFRS. It provided “Conceptual Framework for Financial Reporting” issued in 2010
that provides conceptual understanding as well as basis of practices of accounting under the
IFRS (Nobes 2014). Hence, this report aims to discuss difference in the financial reporting
and comparison of IAS will be done between China and Singapore. Moreover, discussion
will be on the accounting for tangible and intangible fixed assets. Lastly, discussion will be
on creative accounting.
Discussion
Differences in Financial Reporting
The rapid growth of economy in past decade in the China has amazed rest of the
world. Since, in December 2001, the accession to WTO has resulted the business activities of
China to expand further and influence of China on the economy of world continues to
increase. China understand that the sound system of financial reporting plays key role in
development of economy. The Chinese Ministry of Finance is liable for the matters of
regulating matters in China. It sets out the objective to foster confidence of investor in the
financial information, increasing financial reporting transparency and harmonizing the
national accounting standards of China with the IFRS, for reducing costs of raising the capital
by company and alleviating financial crisis risks (Lang and Stice-Lawrence 2015). China has

3INTERNATIONAL FINNACIAL REPORTING
made key progress in harmonizing the accounting standards of China with the IFRS. The
revised law has marked big step forward for continuing integration of the capital markets and
the world trade with the China implementing substantial number of standards of accounting
laid out by IASB. The older “Chinese Accounting Standards” were largely been replaced by
the IFRS for bringing China more in the line with rest of the world. There is almost ninety to
ninety-five percent similarity between CAS and IFRS. It has been proven to be massive
undertaking. This has resulted into offering of shares for sale in US are required for preparing
three sets of the statements, the first one is by using China GAAP, the second one is by using
IFRS and the third one is by using US GAAP. However, US SEC lets the foreign private
issuers for using financial statements prepared according to IFRS (Ifrs.org. 2020).
However, in case of comparison of universal standards with IFRS, it can be said that
since 2003, all the companies of Singapore are required to prepare as well as present the
financial statements, which complies with “Singapore Financial Reporting Standards”. This
is similar to IFRS. It is the measure taken by “Accounting Standards Council” to reinforce
status of Singapore as an “International Financial Center”. It intends towards the full
convergence with IFRS in the due course (Isca.org.sg. 2020). Following table clearly explains
the differences between SRRC and IFRS:
SRFS IFRS
1 SFRS are the standards of accounting in Singapore.
All entities in the Singapore, which have commenced
their financial period since January 2003 are bound for
acting according with SFRS, which is also based on
IFRS. These are applicable to the small companies.
IFRS are standards set by the
foundation of IFRS and IASB.
These standards purposes to
bring all affairs of business and
accounts at one platform by the
help of introducing global
language, which will lead to