International Accounting Standard Board Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
International Accounting Standard Board Essay
I need credible responses for two articles. For the first article, I need two different responses. One of those two responses should have a reference.
For some time, the International Accounting Standard Board (IASB) has been involved in efforts to develop understandable and enforceable International Financial Reporting Standards (IFRS). The goal for the standards are to be able to serve equity investors, lenders, and creditors, as well as others, in globalized capital markets. This has greater importance as a global economy has become a reality requiring high-quality standards to be applied across the board. Prior to this time, few countries had adopted what was then known as the International Accounting Standards (now known as the IFRS). This changed, largely due to two main events. The first occurred in 2000 when the International Organization of Securities Commissions (IOSCO) endorsed IFRS for cross-border securities offerings in the world’s capital markets. Subsequently, in 2002, The European Union (EU) decided to require IFRS for all companies listed on a European stock exchange to begin in 2005. After those two events, as of today, nearly 100 countries require IFRS, or some very near equivalent.
Effective October 2002, the IASB and FASB signed a memorandum of understanding known as the Norwalk Agreement to make their existing financial reporting standards “fully compatible as soon as is practicable” and to “coordinate their future work programs to ensure that once achieved, compatibility is maintained”. The phrase “fully compatible” was, in general, understood to mean that compliance with U.S. GAAP would also result in compliance with IFRS. Several short-term and longer-term convergence projects have commenced with the goal of eliminating differences between the two sets of standards. It was agreed that if U.S. GAAP had the preferred standard, it would be adopted by IFRS and vice versa, as well as if there were improvements to both standards, that the Boards would work together to that end.
It is apparent that there is a need for international reporting standards. It is equally apparent that it would be unrealistic for the world to conform to the FASB standard, just as it is unrealistic for the US to conform, unilaterally, with the IFRS. The solution, therefore is to take all of the best parts of FASB and marry them with the best parts of the IFRS, which is, convergence. It is arguably, in the global economy, in the best interests of all concerned to have a single standard. This standard has yet to be developed, or adopted, fully. We are, however, much closer to that eventuality than ever before. So, has convergence worked? In many ways it has. The SEC made a major ruling in 2007 eliminating the requirement that a foreign issuer using IFRS must present a reconciliation of profit or loss and owner’s equity to amounts that would have been reported under US GAAP. This is a major milestone in the creation of a single reporting standard and is, I believe, long overdue. For the world markets to operate effectively, there needs to be clarity and the convergence of US GAAP and IFRS will be a major step in obtaining that clarity.
https://www.journal of accountancy.com/issues/2013feb/20126984.html
To summarize the article overall, it is apparent that the main message coming across is that although many countries have adopted the same version of IFRS, there are a couple factors that could not only weaken the application of adopting IFRS but also weaken the comparability of the financial information from different countries. These factors are national culture and the difficulty involved with translating the guidelines into specific languages.
First, from a survey that was performed, it was determined that national culture can in fact affect the adaptation of IFRS because the more conservative the country, the higher uncertainty avoidance and lower individualism. They also point out that higher secrecy in a nation means that some financial information may be restricted from external stakeholder’s access. Based on the cultural values in a country, the methods of accounting or accounting values can differ which could then lead to differences in the financial statements and in turn hinders the comparability and consistency of statements in different countries.
Next, the difficult task of translating the principles and guidelines into different languages can be another factor that affects the success in application of IFRS. The official language and published language of the IFRS is English and although some languages can be relatively to translate, other languages prove problematic because it could mean different interpretations of the regulations. This means that if something is translated incorrectly or misinterpreted in a non-English speaking country, there is a threat of lack of comparability and consistency within financial information of different countries.
My overall reaction is that this article was very informative regarding the problems one could face in the adoption of IFRS around the world. The most interesting part to me, that I did not think of at first was the problems that could arise from the translation of the IFRS guidelines into numerous other languages. It makes sense that this could be a problem because of the significant differences in the languages, but it is one that I would not have thought of. It is obvious that it would not only be difficult to have the entire globe learn one standard language, but to decide on one language would be extremely difficult as well and this would take more time than one would really want to spend.
Tsakumis, G. T., Campbell, D. R., Sr., & Doupnik, T. S. (2009, February 01). IFRS: Beyond the Standards. Retrieved from https://www.journalofaccountancy.com/issues/2009/feb/ifrsbeyondthestandards
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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