International Financial Reporting Essay Example | Topics and Well Written Essays - 5500 words

International Financial Reporting - Essay ExampleThe notion evaluate and becoming view has originated from British accounting. There has numerous comment of adjust and fair view as thither is no exact definition available of the term either by the standard setters or in law or even through court verdicts. The notion true and fair view has neer been defined officially and as the principle is dynamic, it is neither desirable nor possible to give an exact definition for the concept. (Evans 2003312) However , in a French case that was decided in 1994 did mention about the say that termed it as a trust on adhering with accounting regulations, which does not automatically guarantee a true and fair view. IASB demands that monetary reports should offer a true and fair view. US accounting regulations demand that accounts should be resigned as per popularly accepted accounting principles. (Walton & Aerts 200669).As per IFRS, the general intention of financial reports is to offer a ju st and fair presentation of the modification or changes in the financial performance and position of a business organisation or a comp some(prenominal). The Conceptual Framework of IASB advocates that fair presentation could also be mentioned as offering a true and fair view. However, IAS 1.15 standard specifically states that publication of financial reports, which is based on the chief hypothesis that the application of IFRS with further or additional dissemination, if needed, is supposed to present financial reports mirroring a fair presentation. ... needed, is supposed to present financial reports mirroring a fair presentation. Further, IAS 1 demands in the same tenor an unreserved and explicit of adherence with IFRS to be comprised in the notes to the accounts. (Walton & Aerts 200669). As per Walton, the three classes of moment of true and fair view are a residual, legal clause a generally accepted accounting concept and an independent concept. Further, under the view of GAAP , the proposition for European harmonisation is that before the ordinal directive, each member nation had its own true and fair view. Thus, to establish a synchronized true and fair view would need a common meaning or GAAP and that it should be far-famed that actual words are just signifiers only. As regards to true and fair view, Waltons general view is that it is having both a probable large political meaning and an operational meaning, when accountants are enhancing or defending their professional position. The notion true and fair view has been formulated in the UK footed on the following three fundamentals namely an independent concept a legal residual clause and generally accepted accounting principles. (Evans 2003). A true and fair view is needed to accomplish the oddment of financial reports which is to offer info about the status of the financial standing , financial performance and any modification or change in the financial status of a business or a company that is advantageous to a broader choice of stakeholders or users in arriving at financial decisions. (ISAB IAS Framework 2001). In financial reporting, the true and fair view can be mirrored by four soft uniqueness namely undesirability relevance comparability and reliability. Financial reporting is the