International Financial Reporting Standards

Holly Shilling Dr. David Morris March 20, 2016 Accounting 2102 International Financial Reporting Standards Say you want to buy stocks in a cell phone manufacturing company. How do you know which company to invest in? A good business plan would be to compare the financial statements for each competing company. A task as such would be nearly impossible if there were not a standard system of financial records. In 1973, with the growing amount of international trade, the International Accounting Standards Committee decided to create a set of new accounting standards for the European nations. The International Financial Reporting Standards (IFRS) were created in an attempt to communicate easily tradable financial records for the countries of Europe…

Introduction Generally accepted accounting principles (GAAP) are defined as the common set of accounting principles, standards and procedures that companies must follow when they report their financial statements. It is aimed at improving the clarity of the communication of financial information. International Financial Reporting Standards (IFRS) on the other hand, is referred to as a single set of accounting standards, created and enhanced by the International Accounting Standards Board (IAS)…

to the SEC The International Financial Reporting Standards, also known as IFRS, are a set of accounting principles that are used globally. They were created by IASB, the Independent Accounting Standard-Setting Body. Over the past several years, the U.S. Security and Exchange Commission, also known as the SEC, has provided information and commented on whether or not investors and issuers of financial statements should use International Financial Reporting Standards to prepare their financial…

International Financial Reporting Standards are a set of high quality and complex accouting standards for the preparation of consolidated financial statements. International Accounting Standards Board set a mission to develop IFRS to promote transparency, accountability and economic efficiency in global capital markets (IFRS 2015). By regulating the financial reporting globally, IFRS enhance financial reporting transparency. Adopting IFRS, euqities are required to disclose financial performance…

In 2008, the US Security and Exchange Commission announced its plans to force US companies to switch from the General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS). In the US, GAAP are the accounting procedures that companies are required to follow when generating the company’s financial statements. (Investopedia, n.d.) While the IFRS is the international accounting standards in which business transactions are reported in financial statements.…

introduced in the thesis and examples of the levels at which they exist. Financial reporting standards are defined most cleanly as a set of guidelines and rules for conveying formal records of financial activities of an entity, capable of being applied consistently across the level at which they are designed. This can be locally, within a small or independent economy, or globally, as is the case with the IFRS and US GAAP, both of which have a wide range of users, both governments and firms…

frequent. The language of accounting such as financial report used by international society generally, plays an important role in the process of economic globalization. At the same time the people involved are having a higher demand for it. Bushman (2003) argues the quality of the accounting information, especially the reliability and comparability often directly determine the quality and consequences of market transactions. Also the quality of the accounting information affects the efficient…

In the year 2016, the board published two copies of the reviewed International Auditing Standards that considered the integration of the United States auditing standards. The board also completed its project on integrating the United States auditing process and the International auditing Standards and announced the availability of the revised edition handbooks (Jaruga, Fijalkowska, Jaruga-Baranowska & Frendzel 2007, p. 70) The Implication of the International Standards on the U.S Companies The…

embrace common set of financial reporting frameworks in a bid to enhance uniformity and consistency in financial reports. Different countries all over the world have been evident to adopt varying standard that govern the presentation and recognition of the items in financial reports. However, with the current trends towards globalization, companies in the US have grown interests in embracing standards that govern MNCs and global firms. It is however worth noting that, despite the overwhelming…

modify financial statements (p. 55). Introduction. The authors studied ethical considerations and manipulative behavior of prepares of financial statements. Financial statements should be reliable so interested parties can make adequate economic decisions. Using the figures, prepares of financial statements send the message to shareholders and other users. The activities of financial statement prepares may alter the message that will be transmitted to users. This behavior is known as…