Discuss the Impacts of Ifrs on the Usefulness of a Statement to the Shareholders of Public Limited Company (2500)
INTRODUCTION
Fleckner (2008) states, to address the increasing challenges of legislating that governments face in modern societies, countries all over the world have begun to outsource rulemaking to bodies consisting of people familiar with the subject. One of the most instructive examples of the challenges today 's legislators face is accounting: hardly anyone except professional accountants understand it, and it would be naive to assume that government officials or members of parliament could draft, discuss, and enact accounting rules. For that reason, policymakers rely on private entities to establish financial accounting and reporting standards. The two most influential standard-setters are the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
The International Financial Reporting Standards (IFRS) are standards developed by the International Accounting Standards Board (IASB). The IASB is an independent accounting standard-setting body based in London, UK. On the 1st of March 2001, it took over the role of setting standards from its predecessor, the International Accounting Standards Committee (IASC), which was founded in June 1973 in London. According to the IASB Due Process Handbook April 2006, the foremost objective of the IASB is to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards.
According to the IASB Due Process Handbook, the IASB considers the following factors when adding agenda items:
(a) The relevance to users of the information involved and the reliability of information that could be provided
(b) Existing guidance available
(c) The possibility of increasing convergence
(d) The quality of the standards to be developed
(e) Resource constraints.
Furthermore, the IASB Due Process Handbook states that the IASB considers whether the project [the standard setting process] would address the needs of users across
Fleckner (2008) states, to address the increasing challenges of legislating that governments face in modern societies, countries all over the world have begun to outsource rulemaking to bodies consisting of people familiar with the subject. One of the most instructive examples of the challenges today 's legislators face is accounting: hardly anyone except professional accountants understand it, and it would be naive to assume that government officials or members of parliament could draft, discuss, and enact accounting rules. For that reason, policymakers rely on private entities to establish financial accounting and reporting standards. The two most influential standard-setters are the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
The International Financial Reporting Standards (IFRS) are standards developed by the International Accounting Standards Board (IASB). The IASB is an independent accounting standard-setting body based in London, UK. On the 1st of March 2001, it took over the role of setting standards from its predecessor, the International Accounting Standards Committee (IASC), which was founded in June 1973 in London. According to the IASB Due Process Handbook April 2006, the foremost objective of the IASB is to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards.
According to the IASB Due Process Handbook, the IASB considers the following factors when adding agenda items:
(a) The relevance to users of the information involved and the reliability of information that could be provided
(b) Existing guidance available
(c) The possibility of increasing convergence
(d) The quality of the standards to be developed
(e) Resource constraints.
Furthermore, the IASB Due Process Handbook states that the IASB considers whether the project [the standard setting process] would address the needs of users across
References: Ball, Ray, 1995. Making accounting more international: Why, how, and how far will it go? Journal of Applied Corporate Finance 8, Fall, 19-29. Watts, R., Zimmerman, J., 1986, Positive Accounting Theory (Englewood Cliffs, NJ: Prentice-Hall)