Introduction to Finance and Accounting

   

Added on  2020-06-04

6 Pages1328 Words185 Views
ACCOUNTING ANDFINANACE(ACCOUNTINGSTANDARD)
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Table of ContentsINTRODUCTION...........................................................................................................................1Evaluation of IAS and IFRS ......................................................................................................1Financial reporting standards 102...............................................................................................2IFRS and FRC implemented in the UK .....................................................................................2Reasons why non listed organisation use the FRS 102 rather than IAS.....................................3CONLUSION..................................................................................................................................3REFERENCES................................................................................................................................4
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INTRODUCTIONFinance and accounting are related to business and organisation. Accounting standards,principles and concepts are made to keep the records in specific format. Finance management isthe branch of managerial accounting helps to operate and manage the different departments oforganisation (Christensen, Hail and Leuz, 2013). International Accounting Standards (IAS andIFRS) and FRS (Financial Reporting Standards) defined in this report. FRS 102 are defined inrespect of Non-listed companies in the UK.Evaluation of IAS and IFRS International Accounting Standards (IAS) is the authorised board produces theaccounting standards and rules for business and organisations. This is considered as IASB whichis an independent authorised body of IFRS foundation. IASB was firstly introduced in 1 April,2001 with the name of International Accounting Standards Committee (IASC). Board isresponsible to make the rules and guidelines for emerging the International Financial ReportingStandards (IFRS).IASC was formed in 1973 to set the international accounting standards and rules.IAS and IFRS rules are followed by the organisation more over in 100 countries. European unionand all other countries also adopted the accounting standards and rules given by IASB and IFRS.Objectives of establishing the IASB are to build a well maintained and ethical accounting andfinancing reporting practice in organisational context. As per the changing trends finacialreporting standards also became change. Transparency and fairness in financial reports becomethe prime object of business and organisations. IFRS foundation was incorporated on 6 February, 2001. this is a non profit organisationwhich works as an individual body produce the rules related to finance reporting and accountingstandard. IAS are issued by the IASB and IFRS are the rules related to financial reporting. Ithelps to maintain the ethical environment and disciplined order to maintain the financial recordsand financial statements.GAAP (Generally Accepted Accounting Principle) are the combination of rules andstandards which are useful to business and organisation. These rules are adopted at internationallevel. GAAP provides the structures and formats to keep the records and accounting informationin systematic manner. Structures and formats helps investors, stakeholders and creditors tounderstand and compare the financial position of various accounting and financial industries.1
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