International Accounting Research Paper Example | Topics and Well Written Essays - 1000 words

International Accounting - Research Paper Example This essay stresses that financial reports will always need to be produced to satisfy statutory requirements, such as filing accounts or for the presentation of tax returns. As the harmonization of accounting standards takes place on a global scale, corporate reports become more comparable. This is useful for the investors who should be able to compare financial information from different business that are located in different countries. This paper makes a conclusion that in International accounting, the purpose of corporate reporting is to compliance with accounting standards. Despite the number of accounting standards in issue and the requirement for accounts to present a true and fair view, there are still number of companies that fail to comply with requirements of the standards. The financial reporting review panel in UK has the aim of ensuring that both public and private companies comply with the companies Act and accounting standards. It has expanded its role to assess financial statements prepared under international accounting standards in the UK. There are key differences between UK Standards and IFRS. The presentation of single company and group accounts in UK is governed by Companies Act 2006. but for companies or groups listed on stock exchange within European Union, they are obliged to prepare annual financial statements in accordance with International accounting standards.... The framework does not define these ideas, but compliance with international standards and the framework will help to achieve these ideas. Assessment of International Accounting The International accounting framework provides a conceptual underpinning for International financial reporting standards. One of the objectives of the framework is to provide a basis for the formulation of international financial reporting standards. The another advantage of international accounting is that the framework forms a basis for dealing with any accounting issues that arises which are not covered by accounting framework. The framework’s approach builds to corporate reporting around the definitions of assets and liabilities and the criteria for recognizing and measuring them in a statement of financial position. This approach views accounting form the perspective of the statement of financial position whereas most of companies would not consider the measurement and recognition of assets and l iabilities as the starting point for the determination of profit. In many jurisdictions, the financial statements form the basis of dividend payments, the starring point of the assessment of taxation, and often the basis for executive remuneration. A balance sheet fair value system, which International accounting standard board seems to favor, would have a major impact on the above elements. Current Development This is a long term joint project between International accounting standards and the US FASB, which was first agreed in 2004. The end point of the eight stage project will be approval of single, self-contained document which will create a foundation for the development of future accounting standard that are principal based, internally