Current Development in Accounting Thought: Report and Analysis

This report delves into the current developments in accounting thought, focusing on an analysis of an accounting professional journal article concerning the "22nd enforcement decisions report" by ESMA. The report identifies and discusses key issues disclosed in the news article, evaluating the context of IFRS standards (IAS 36, IFRS 5, IAS 29, IFRS 10, and IFRS 3). It assesses the extent of the conformation in accordance to the IFRS standards, the pronouncements of the specific decisions, and the intention behind the same. The report also includes an evaluation and deconstruction of the issues reported in the news article and identifies a range of applicable accounting theories, such as the positive theory of a specific rule and regulation, and the public interest theory. Furthermore, the report provides an executive summary and comment letter regarding proposed accounting standards and updates in the income statement and the reporting of comprehensive income, analyzing comments from various companies to determine the feasibility of implementation.

Running head: CURRENT DEVELOPMENT IN ACCOUNTING THOUGHT
Current Development in Accounting Thought
Name of the Student:
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Author’s Note:

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CURRENT DEVELOPMENT IN ACCOUNTING THOUGHT
Table of Contents
Answer to Question No 1................................................................................................................2
Introduction..................................................................................................................................2
Identification, description and discussion of the key issues disclosed in the news article..........2
Evaluation and the deconstruction of the issues reported in the news article.............................4
Identification of a range of the applicable accounting theories...................................................5
Conclusion...................................................................................................................................6
Answer to Question No 2................................................................................................................7
Executive Summary.....................................................................................................................7
Comment Letter...........................................................................................................................8
Introduction..................................................................................................................................8
Assessment whether exposure draft is introduced with respect to the interests of the public.....8
Comments that have been presented in the letter with respect to the agreement and
disagreement..............................................................................................................................10
Significance to the proposal.......................................................................................................12
Conclusion.................................................................................................................................12
Reference List................................................................................................................................13
Appendix........................................................................................................................................17
Appendices 1.............................................................................................................................17
Appendices 2.............................................................................................................................18

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Answer to Question No 1
Introduction
This essay has been constructed in accordance to reviewing an accounting professional
journal article with the help of which an idea can be obtained with respect to the news article that
has been published. The assessment of the article assists in having an understanding of 22nd
enforcement decisions report.
Identification, description and discussion of the key issues disclosed in the news article
This particular essay is related to the article that has been published on 30th April 2018
and the article is based on the “22nd enforcement decisions report”. This article looks to consider
the European securities and even the market authority and discloses the extracts that are
supplementary in nature from several database of distinct decisions related to enforcements that
are specifically undertaken by the European national enforcers. It is seen that this distinct group
manages all the decisions related to the various standards of accounting that are inclusive of the
“IAS 36, IFRS 5, IAS 29, IFRS 10 and IFRS 3”.
The essential concern on which the essay tries to cover has been the announcement of
ESMA associated to several information that is available from several data sources that are
private with respect to the decisions related to enforcements on the financial statements. There
exists a problem related to the knowledge about the degree with respect to which it can fortify
the management convergence and the current various issuers in relation to the ones who make
use of the financial data that is precise to the financial data in the suitable application of the rules
that have been explained under the “International Financial Reporting Standards”. Furthermore,

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the article that has been chosen addresses the disclosures of the decisions related to the
enforcements that would address the respondents in the market about which the treatment of
accounting related to the European enforcements and this may potentially consider the
conformation with the IFRS accounting trend (Giner et al., 2016). The several kinds of standards
of accounting especially in the purview along with the range and this have been the one that are
allowed by IFRS. Therefore the key problem that can be regarded is inclusive of having an
understanding of the explanation that is behind the distinct decisions that can course the path
towards the effective use of the regulations and standards of IFRS that has been explained in
EEA (Adhikari et al., 2014). The paper explains that the European enforcers of distinct financial
report assessment and thereafter address the financial pronouncements. It is seen that the
pronouncements are explained by several issuers with district securities that are generally traded
on a market that is guarded and is situated in Europe and distinctly the ones that can arrange the
financial reports in accordance to IFRS.
In addition, the chosen article of the paper tries to assess the extent of the conformation in
accordance to the IFRS standards of IFRS in relation to the requirements that have been applied
for the purpose of reporting which is inclusive of the national objective. “ESMA” constructed a
database that is secret for the distinctive decisions related to enforcements that is undertaken by
the specific enforcers that has been undertaken by the specific European enforcers on the basis of
the data in order to nurture the suitable incorporation of the standards of IFRS (Beck et al.,
2017). This concerned article has even looked to address the disclosure of the distinct decisions
specifically on the enforcements that are constructed in order to address the several partakers
related to the market that considers the treatments of accounting (Olibe, 2016). The article even
addresses the assessment of whether the various treatments of accounting can be regarded to

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being with the range that has been identified of the ones that is permitted by the IFRS standards.
Furthermore, ESMA even takes into account the pronouncements of the specific decisions in
accordance to the intention behind the same. Therefore, this element can be supportive in
assisting towards the stable implementation of the IFRS standard specifically within the
European Union (Markelevich et al., 2015).
Evaluation and the deconstruction of the issues reported in the news article
There are several topics that have been discussed in the news article that has been
selected and the standard that has been included in the article has been IFRS 5. This essentially
on the non-current assets that are preserved for the purpose of sales as discounted activities
comprising of the matter of the subject in accordance to the asset classification (Osei, 2017). It is
seen that it is not anticipated to be promoted in the market with the distinct time frame of 1 year.
In this manner, it is seen that the information can be added in this distinct piece of the
explanation that has been considered (André et al., 2016). Distinctively, the general context, this
allows the assessment of the assets or the batch that is disposal and is preserved essentially for
sales are not depreciated. It is computed at a much smaller value of the distinctively the carrying
value in accordance to the fair value by subtracting the cost that is associated to the market.
IAS 7 focuses on the cash flow statement and this has been observed in this article. This
encompasses the explanation as well the disclosure of the limited cash balance. This article even
is inclusive of the IAS 32 specifically on the financial tools and focuses on the presentation. This
essay therefore addresses the everlasting notes that can be explained as the liabilities that are
disclosed in this specific part (Schreiber, 2017). Furthermore, IAS 1 is even addressed in this
article prioritizing the disclosure of the financial reports. Additionally, IAS 36 duplicating the
asset impairment assists in explaining the declarations on the specific estimations that are related

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to the various competitive prices that have significant amount of risk that leads to the
adjustments of the materials to distinct amounts related to carrying. IFRS 3 has been enclosed in
the article on the “Business Combination”, IFRS 13 concentrates on the enumeration of the fair
value and IAS 38 concentrates on the intangible assets that explain the price of the purchase
intention of a distinct group of the various assets that have been accumulated (Fisher, & Nehmer
2016). In addition, it is seen that IFRS 17 explains the distribution of the various non-cash assets
to the several owners addressing the demergers and the precise distribution of the particular
segment to the issuer of the shareholder (Blatt et al., 2018). Furthermore, IAS 1 explains the
disclosure of the financial announcements of the several losses of the revaluation of the several
assets that is utilised in the operational activities. In addition, IAS 10 focuses on the financial
statement consolidation. This specific section of the focuses in the development of authority over
a specific issuer that is specific to the offer given to the tender.
Identification of a range of the applicable accounting theories
Positive theory of a specific rule and regulation addresses about the amendment,
elimination and develop in accordance to the institutional incorporation of the directions that are
distinct to the sector. The influence that is undertaken by the organizations with respect to the
interests of the consumers along with the self interests of the authoritarian agency needs to be
considered for addressing the regulatory attitude (Klann et al., 2015). There are several interest
groups of the specifically consumers, manufacturers with respect to the related interest groups
that may even fight with one another for the intention of gaining certain kind of political
influence. This model can be related to the present article as this document with respect to
enforcement that is inclusive of the several regulations that essentially forces the effect on the

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business organization that are functioning in several segments, consumer interests along with the
regulators (Adeyemo et al., 2017).
It is even seen that the public theory can even be related to the present research on this
article that has been explained. It is seen that this is a particular point of view that can be related
to the perception of the associated wellbeing (De Luca, & Prather-Kinsey 2018). This explains
the empirical authentication of the regulation. The theory even addresses the marker comprises
of distinct characteristics, which may be ineffective and may even under go failure of the market
that needs to be rectified with the use of the distinct rules.
It is seen that this theory has established a key supposition in relation to the
characteristics of the various regulators, utilisation of the entire data and this manner can
undertake specific suitable enforcement (Edwards Jr, 2016). This theory even associates with the
enforcements of the plans that are vital for the development of welfare. Therefore, this article
that has been explained can be understood by exploiting the theory of public interest and in
accordance to the regulation of the positive theory.
Conclusion
The explanation that has been done on the article explains the enforcement decisions
report that has been published by ESMA. In this manner, this theory has been assistive in
assessing the decisions of enforcement related to a specific announcement with the purpose of
developing the management convergence and explaining various issuers with precise data on
suitable incorporation of the IFRS standards.

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Answer to Question No 2
Executive Summary
This report has been prepared in order to understand the development of the comments
and the proposals that have been provided by the “Financial Accounting Standards Board”
(FASB) and the draft has been associated with the “Proposed accounting standards and the
updates in the income statement and the reporting of the comprehensive income”. These drafts
have been offered for comments and there are several companies who have given their comments
on the draft and have either agreed to have disagreed to the draft. Out of all the companies who
have provided their comments, four participants have been selected and accordingly their views
are assessed in order to have an understanding of whether the exposure draft can be put into
implementation or not.

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Comment Letter
The comment letters that have been provided by the companies have been provided in the
appendix below and accordingly the proposal that has been constructed is associated to the
distinct advises in accordance to the accounting standards and thereby creating a foundation of
the updates on the income statement and the reporting of the comprehensive income.
Introduction
The exposure draft that has been constructed with respect to the distinct regulation or
standard associated with accounting, which looks to shed light on the updates that can be made
in the income statement and accordingly the reports that can be made for the comprehensive
income. This can be helpful in creating a better income statement and all the transactions within
the income statement can be understood in an effective manner. The development is essential in
order to mitigate the errors that are existent and the complexities that are related to the
construction and the understanding of the income statement (Gordon et al., 2017). This would be
helpful in creating a process that would provide effective construction of the income statement
and accordingly create a better disclosure of the comprehensive income of the companies.
Assessment whether exposure draft is introduced with respect to the interests of the public
The report that has been constructed comprises of the four selected companies who have
commented on the draft that has been published in the website of FASB. The report has been
helpful in creating an idea about the critical assessment of the comments that are different and
has been attained from the selected companies with the help of which an extensive solution can
be attained with the method of assessing the standards of accounting. Therefore, this method can

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be assistive in answering the several problems (Gotti, 2016). Furthermore, the secondary
objective of the report is to express the process of completing the principles of guiding related to
accounting that would be helpful in the development of the accounting standards. In addition, the
current paper looks to assess the different kinds of comments with respect to the approval and the
disapproval of the companies in order to reach the outcome in accordance to the effectiveness of
the accounting standards (Alon, & Dwyer 2016).
The report would even be helpful in explaining the fact accounting standard in relation to
the updates of the income statement and the reporting of the comprehensive income would be
helpful in addressing the safeguard and the protection of the emotions and the feelings of the
companies due to which the effectiveness of the business can be maintained and along with a
strong bonding among the different companies and their operations as well that would lead to a
better overall business scenario. Therefore the improvement and the upgradation of this kind of
processes that are related to the disclosure of accounting have been explained in an explicit
manner. Walton, (2018) explained that accounting regulations and standards looks to address the
particular knowledge and ideas and thereby essentially effective for the companies associated in
different sectors in order to get engaged in the process of giving out the comments. The
comments act as the feedback that is attained with respect to the distinct proposals and this has
been an effective process with the help of which interests of the public can be enhanced (Perkins,
2016). In the same manner the questions that are pertinent related to the alterations that are
disclosed in the frameworks of the Financial Accounting Standards Board are discussed through
the comments. It is seen that the organizations have the liability of commenting on the distinct
questions that are disclosed in the form and explains the agreements and the disagreements that
have been provided by the respondents. It is seen that there are several questions that are

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explained and all the questions that are disclosed essentially requires to be answered in order to
take care of the interests of the public.
Comments that have been presented in the letter with respect to the agreement and
disagreement
It is explained in this report that the comments that have been gathered from the selected
participants can be regarded in order to decipher the ideas and the knowledge about the
agreements and the disagreements with respect to the alterations that are recommended in the
accounting regulations and guidelines. In this manner, the comments that have been attained
from the companies can be regarded in this outlook.
American Bankers Association
This is a renowned banking organization that looks to control and take care of the
banking activities that are undertaken in United States of America. This association looks to
address the concerns and the issues that are related to the banks in America and accordingly an
effective framework can be maintained. In accordance to the draft that has been provided by the
FASB related on this topic, it is seen that the association has appreciated the opportunity to
provide a comment on the proposed standards of accounting and the present guidance of
accounting and practice create a general value in the comprehensive income that have
accumulated and the outcome that has been attained has been misleading to the investors and a
burden on the administration (Whittington, 2015). The amendment in the structure will not be
helpful for the banks where the stranded amount can have an impact on the extent of capital.
Therefore, the company disagrees to this draft as they feel that these changes in the accounting
standards can have an impact on the financial transactions and reporting of that are done by the

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organizations and the banks and this can have an impact on the operational activities as well. The
association recommends that changes are made in the proposal as well.
The Travellers Companies Inc
This company associates with providing casualty and property insurance services and
products to an extensive variety of the operations and the individuals as well. The company in
their feedback has explained that they are supporting to the approach in order to address the
concerns of the stakeholders with relation to the present guidance in GAAP that needs the
deferred tax liabilities and assets (Aleksanyan, & Danbolt 2015). The company agrees with the
changes that are proposed ASU that would need reclassification from the accumulated
comprehensive income. In this manner, it is seen that all the proposals that have been addressed
in the draft are supported by Travellers Companies Inc and therefore they feel that all the
changes that have been suggested needs to be incorporated.
The Goodyear Tire and Rubber Company
The company concentrates on manufacturing tires and various other rubber accessories to
the consumers and thereby tries to maintain an effective market for themselves. With respect to
the draft that has been disclosed by the FASB, it is seen that the company does not support the
proposal where the reclassification and the transition requirements are explained as they feel that
it would lead to a huger balance of the stranded taxes defeating the purpose of the amendment
(Glover, & Werner 2015).
On the other hand, the company supports the backward tracing that is proposed in the
draft as the company feels that this would eliminate the stranded tax impacts from the financial
statement preparers.