0
What else can I help you with?
What is frs and ifrs?
FRS - Financial Reporting StandardsIn UK, the chief standard-setter for financial accounting is the Accounting Standards Board (ASB), which issues standards called Financial Reporting Standards (FRSs). The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies.IFRS - International Financial Reporting StandardsInternational Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). This is used extensively in EU and there are efforts being made to converge accounting standards globally to IFRS.
What are the Needs for accounting standards?
The term standard denotes a discipline, which provides both guidelines and yardsticks for evaluation. As guidelines, accounting standard provides uniform practices and common techniques of accounting. As a general rule, accounting standards are applicable to all corporate enterprises. They are made operative from a date specified in the standard. Accounting is the art of recording transactions in the best manner possible, so as to enable the reader to arrive at judgments/come to conclusions, and in this regard it is utmost necessary that there are set guidelines. These guidelines are generally called accounting policies. The intricacies of accounting policies permitted Companies to alter their accounting principles for their benefit. This made it impossible to make comparisons. In order to avoid the above and to have a harmonised accounting principle, Standards needed to be set by recognised accounting bodies. This paved the way for Accounting Standards to come into existence.
Which accounting principle requires that transaction should be recorded in the period they occurred?
There is no one accounting principle that requires that a transaction be recorded in the period it occurs (commonly referred to as accrual basis accounting). There is a conceptual statement that the Financial Accounting Standard Board has issued with regard to the use of accrual accounting. The Financial Accounting Standards Board has issued STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO. 6: ELEMENTS OF FINANCIAL STATEMENTS which states in paragraph 134: Items that qualify under the definitions of elements of financial statements and that meet criteria for recognition and measurement are accounted for and included in financial statements by the use of accrual accounting procedures. The basis of accounting, whether cash basis or accrual, should be disclosed in the notes to the financial statements so that the financial statement reader is aware which method of accounting is in use. Generally accepted accounting principles (GAAP) does require the accrual basis of accounting; nevertheless, businesses can present their financial statements on a cash basis as long as proper disclosures are made. The financial statement opinion rendered by the external audit firm would also disclose that the cash basis of accounting is being used.
How accounting profession could fit into globalization effort in the 21st century?
Globalization can simply be defined as the existence of a situation where there is an easy access to any part of the world. This could be in terms of information on any subject matter. With each passing day the business world gets a little smaller as a result of globalization. Each day, it becomes harder for the accountant to remain insulated from what goes on outside of their countries' borders. The accountant as a professional is faced with this situation businesses expand sometimes beyond country borders in response to globalization. Patricia J. Arnold ( School of Business Administration, University of Wisconsin-Milwaukee) in her article entitled "Corporate-led Globalization: Restructuring the Market for Accounting Services" identified two models of globalization: I. Market-led globalization: This theoretical model asserts the primacy of market forces in the process globalization. The market-led model technological advances such as digital technologies, have given rise to global markets. Global markets, in turn, create the need for transparency and accountability. Auditing and accounting supposedly to serve this need by mitigating the agency problem caused by information asymmetries in the capital markets. The accounting profession plays a reactive role within the model. For markets to function properly, the accounting profession must adapt and modernize in response to the globalization of finance and investment. This theoretical model has been used to argue in support of adaptive responses ranging from global professional credentialing to the adoption of International Accounting Standards (IAS). The market-led model views resistance to change on the part of state regulators and professional associations as outmoded rigidities that must eventually give way to impersonal forces of globalization and the imperatives of market efficiency. Although widely accepted, this market-led view of globalization is based on assumptions that fail to recognise the active role that institutional actors namely corporations, industries, nation states, and international institutions like the International Monetary Fund (IMF), World Bank, and World Trade Organization (WTO) have played in the creation of global markets. II. In contrast to the market-led model of globalization, the corporate-led model recognizes the agency of nation states, corporate interests, and international institutions in the creation of global markets. Whereas the market-led model begins with global markets and ends with state and industry adaptation, the corporate-led model begins with institutional agency and culminates in the creation of global markets. The corporate-led model not only provides non-functionalist explanation of how global financial and investment markets were created; it can also explain the accounting profession's role in the globalization process. The corporate-led model posits that the accounting profession does not merely adapt to forces of globalization. To the contrary, the accounting industry, in reliance with the state and international institutions, has played and continues to play an active role in the structuring global markets for accounting services. The globalization of the 21st century even though has a lot of benefits, poses some threats to accountants and the accounting profession as a whole. There are three groups of accountants who are prone to these threats. These groups are: * Accountants working for (or providing outside services to) foreign-owned companies. * Accountants working for (or providing outside services to) locally-based enterprises that are expanding internationally. * Accountants whose knowledge, skills, and abilities limit them to performing only low-value, compliance-oriented work. There also two groups of accounting professionals that are most likely to benefit from increased globalization. These are: * Accountants who expand their financial accounting knowledge, skills, and abilities so as to gain mastery of changing local and International Accounting Standards (IAS). * Accountants who complement their compliance-oriented knowledge, skills, and abilities with the performance oriented knowledge, skills, and abilities of management accounting. Bruce Pounder, CMA, CFM, in his article; "How Globalization is Affecting U.S Accountants", said efforts are being made to mitigate the above threats of globalization in recent years. He made reference to the fact that, compliance with the International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standard Board (IASB) is now required of publicly-traded companies in most countries. In addition to the efforts to fit the accounting profession in the globalization of the 21st century, Bruce Pounder in his article stated that, while there many similarities between the international standards and the U.S. Generally Accepted Accounting Principles (G.A.A.P.), significant differences do exit and today, U.S standards are not automatically presumed to be 'better'. This situation has affected the process by which both U.S and international standards are developed and maintained and has already resulted in changes in both U.S and international standards. According to the IASB chairman Sir David Tweedie, "IFRS are now used by 100 countries throughout the world. By 2012 we expect the accounting standards of major economies such as those of Japan, Canada, China, and India to converge with IFRS while at the same time differences between international standards and the U.S G.A.A.P are being eliminated." As part of the efforts to make the accounting profession run parallel with the globalization of the 21st century, the Financial Accounting Standard Board (FASB) in the U.S and the International Accounting Standard Board (IASB) jointly issued a memorandum of understanding known as the "Norwalk Agreement" in October 2002 to mark a significant step toward formalizing their commitment to the convergence of U.S and International Accounting Standards. As result of this the FASB undertook several key initiatives to further the goal of convergence of U.S G.A.A.P. with IFRS. For example, the FASB pronouncement has updated rules concerning inventory cost, exchange of non-monetary assets, and accounting changes and error corrections primarily to achieve convergence with IASB standards. David Illingworth (The Vice President of the Institute of Chartered Accountants, England and Wales), in a speech entitled, "Accounting Profession and Globalization" suggested that the accounting profession can fit into the globalization of the 21st century by accepting the need for global standards in its work. This he said was the reason why the ICA (England and Wales) work through the International Federation of Accountants (IFA) to ensure that all accountants and auditors in the world subscribe to a global code of ethics. Bruce Pounder concluded that, the accounting profession can fit into the recent globalization by enhancing the knowledge, skills, and abilities, and credentials of its members. Life-long learning is not merely desirable. It is essential for career success in an increasingly globalize world. Globally-recognised credentials like the Association of Chartered Certified Accountants (ACCA), Certified Management Accountants (CMA), and Certified Internal Auditors (CIA) can make complements to localized credentials. Graham Ward (President of the IFA) states "we firmly believe that it is the public's interest to have a single set of international standards, of the highest quality, set in the public interest by an international expert body which transparently consults with, and recognises the legitimate interests of, the international community". The key assumption in the above statement is that universal acceptance of a single set of high quality standards would make the global market more efficient by enhancing consistency and comparability of financial statements. In conclusion, as businesses become increasingly globalize, there is clearly more pressure on accounting profession to expand and enhance the knowledge, skill, and abilities of its members beyond what they are currently likely to possess in order to fit well into the globalization of the 21st century. ALBERT TACHIEE-MAIL: albert.tachie@bollore.com TEL: +233 243 860 333
What are accounting conversion and concept?
accounting concept are the basic knowledge of accounting on which basis monetry transation are made in accounting book.
What is frs and ifrs?
FRS - Financial Reporting StandardsIn UK, the chief standard-setter for financial accounting is the Accounting Standards Board (ASB), which issues standards called Financial Reporting Standards (FRSs). The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies.IFRS - International Financial Reporting StandardsInternational Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). This is used extensively in EU and there are efforts being made to converge accounting standards globally to IFRS.
How many international accounting standard do you have in accounting?
There are currently 41 IAS and 9 IFRS. Although not all of the ISAs are still used as they superseded by other standards and made outdated.
What are the Needs for accounting standards?
The term standard denotes a discipline, which provides both guidelines and yardsticks for evaluation. As guidelines, accounting standard provides uniform practices and common techniques of accounting. As a general rule, accounting standards are applicable to all corporate enterprises. They are made operative from a date specified in the standard. Accounting is the art of recording transactions in the best manner possible, so as to enable the reader to arrive at judgments/come to conclusions, and in this regard it is utmost necessary that there are set guidelines. These guidelines are generally called accounting policies. The intricacies of accounting policies permitted Companies to alter their accounting principles for their benefit. This made it impossible to make comparisons. In order to avoid the above and to have a harmonised accounting principle, Standards needed to be set by recognised accounting bodies. This paved the way for Accounting Standards to come into existence.
Why comparison is not made between aasb and us gaap?
Comparison is not made between the AASB (Australian Accounting Standards Board) and the US GAAP (Generally Accepted Accounting Principles) as conflict has been ramped between the two nations of Australia and the United States of America. Although the two countries participate in government relations their economic participation has been damned since the introduction of the Australia-U.S Free trade agreement in 2003. Companies in both countries opposed the introduction of the agreement and as a protest have to this day refused adopt the others accounting standards.
What accounting standards are used in Fiji?
المعايير المحاسبية التي تستخدم في أي دولة من دول العالم هي تلك المعايير التي الصادرة من قبل المعاهد والمراكز المهنية في الولايات المتحدة الأمريكية والمملكة المتحدة المتعارف عليها والمقبولة قبولا عاما في معظم دول العالم
Which accounting principle requires that transaction should be recorded in the period they occurred?
There is no one accounting principle that requires that a transaction be recorded in the period it occurs (commonly referred to as accrual basis accounting). There is a conceptual statement that the Financial Accounting Standard Board has issued with regard to the use of accrual accounting. The Financial Accounting Standards Board has issued STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO. 6: ELEMENTS OF FINANCIAL STATEMENTS which states in paragraph 134: Items that qualify under the definitions of elements of financial statements and that meet criteria for recognition and measurement are accounted for and included in financial statements by the use of accrual accounting procedures. The basis of accounting, whether cash basis or accrual, should be disclosed in the notes to the financial statements so that the financial statement reader is aware which method of accounting is in use. Generally accepted accounting principles (GAAP) does require the accrual basis of accounting; nevertheless, businesses can present their financial statements on a cash basis as long as proper disclosures are made. The financial statement opinion rendered by the external audit firm would also disclose that the cash basis of accounting is being used.
What are the procedure of issuing accounting standards in India?
PROCEDURE FOR ISSUING AN ACCOUNTING STANDARD FOR LOCAL BODIES (ASLB) Broadly, the following procedure is adopted for formulating Accounting Standards for Local Bodies: 1. Determine the broad areas in which Accounting Standards need to be formulated and the priority in regard to the selection thereof. 2. For the preparation of the Accounting Standards, the CASLB will be assisted by Study Groups constituted to consider specific subjects. In the formation of Study Groups, provision will be made for wide participation by various interest groups. 3. The draft of the proposed standard will normally include the following: a. Objective of the Standard, b. Scope of the Standard, c. Definition of the terms used in the Standard, d. Recognition and measurement principles, wherever applicable, e. Deviations, if any, from the corresponding International Public Sector Accounting Standard (IPSAS), as an Appendix to the Standard. 4. The CASLB will consider the preliminary draft prepared by the Study Group and if any revision of the draft is required on the basis of deliberations, the CASLB will make the same or refer the same to the Study Group. 5. The procedure for issuance of an Interpretation on any Accounting Standard for Local Bodies will be the same as that for issuance of an Accounting Standard since the authority of an Interpretation is the same as that of Accounting Standard for Local Bodies to which it relates. 6. The CASLB will circulate the draft of the Accounting Standard/Accounting Standards Interpretation for Local Bodies to the Council members of the ICAI and the following specified bodies for their comments: a. Comptroller and Auditor General of India (C&AG)b. Ministry of Urban Development, Government of India c. Controller General of Accounts d. Ministry of Panchayati Raj, Government of India e. National Institute of Urban Affairs f. Directorates of Local Bodies of the State Governments g. Directorates of Local Fund Audit Department of the State Government h. Major Local Bodies i. National Institute of Financial Management j. Securities and Exchange Board of India k. Any governmental Committee(s) or other similar body, e.g., the Technical Committee on Budget and Accounting Standards for ULBs constituted by the Ministry of Urban Development l. The All India Council of Mayors m. All India Institute of Local Self Government n. Donor of funds to Local Bodies such as US AID, World Bank, etc. o. The Institute of Cost and Works Accountants of India p. The Institute of Company Secretaries of India q. All the Indian Institutes of Management (IIMs) r. Any other body considered relevant by the CASLB keeping in view of the nature of the Accounting Standard. 7. The CASLB will hold a meeting with the representatives of the selected specified bodies to ascertain their views on the draft of the proposed Accounting Standard/Accounting Standards Interpretation for Local Bodies. On the basis of comments received and discussion with the representatives of specified bodies, the CASLB will finalise the Exposure Draft of the proposed Accounting Standard/Accounting Standards Interpretation for Local Bodies. 8. The Exposure Draft of the proposed Standard/Interpretation will be issued for comments by the members of Institute and the public. The Exposure Draft will be sent to the specified bodies (as listed above), and other interest groups, as appropriate. 9. The Exposure Draft will be sent to any governmental Committee(s) or other similar body, e.g., the Technical Committee on Budget and Accounting Standards for ULBs constituted by the Ministry of Urban Development for sending comments on the Exposure Drafts of the proposed Standard/Interpretation.10. After taking into consideration the comments received, the draft of the proposed Accounting Standard/Accounting Standards Interpretation for Local Bodies will be finalised by the CASLB and submitted to the Council. 11. The Council of the ICAI will consider the final draft of the proposed Standard/Interpretation, and if found necessary, modify the same in consultation with the CASLB. The Accounting Standard/Accounting Standards Interpretation on the relevant subject will then be issued by the ICAI. 12. The ICAI will send the Accounting Standards so formulated to the governmental Committee(s) or other similar body, e.g., the Technical Committee on Budget and Accounting Standards for ULBs constituted by the Ministry of Urban Development for recommending the same for implementation by the State Governments to achieve uniformity in preparation and presentation of financial statements by complying with the requirements of the Accounting Standards for Local Bodies. 13. For a substantive revision of an Accounting Standard.Accounting Standards Interpretation for Local Bodies, the procedure followed for formulation of a new Accounting Standard/Accounting Standards Interpretation for Local Bodies, as detailed above, will be followed. 14. Subsequent to issuance of an Accounting Standards/Accounting Standards Interpretation for Local Bodies, some aspect(s) may require revision which are not substantive in nature. For this purpose, the ICAI may make limited revision to an Accounting Standard/Accounting Standards Interpretation for Local Bodies. The procedure followed for the limited revision will substantially be the same as that to be followed for formulation of an Accounting Standard/Accounting Standards Interpretation for Local Bodies, ensuring that sufficient opportunity is given to various interest groups and general public to react to the proposal for limited revision.
How accounting profession could fit into globalization effort in the 21st century?
Globalization can simply be defined as the existence of a situation where there is an easy access to any part of the world. This could be in terms of information on any subject matter. With each passing day the business world gets a little smaller as a result of globalization. Each day, it becomes harder for the accountant to remain insulated from what goes on outside of their countries' borders. The accountant as a professional is faced with this situation businesses expand sometimes beyond country borders in response to globalization. Patricia J. Arnold ( School of Business Administration, University of Wisconsin-Milwaukee) in her article entitled "Corporate-led Globalization: Restructuring the Market for Accounting Services" identified two models of globalization: I. Market-led globalization: This theoretical model asserts the primacy of market forces in the process globalization. The market-led model technological advances such as digital technologies, have given rise to global markets. Global markets, in turn, create the need for transparency and accountability. Auditing and accounting supposedly to serve this need by mitigating the agency problem caused by information asymmetries in the capital markets. The accounting profession plays a reactive role within the model. For markets to function properly, the accounting profession must adapt and modernize in response to the globalization of finance and investment. This theoretical model has been used to argue in support of adaptive responses ranging from global professional credentialing to the adoption of International Accounting Standards (IAS). The market-led model views resistance to change on the part of state regulators and professional associations as outmoded rigidities that must eventually give way to impersonal forces of globalization and the imperatives of market efficiency. Although widely accepted, this market-led view of globalization is based on assumptions that fail to recognise the active role that institutional actors namely corporations, industries, nation states, and international institutions like the International Monetary Fund (IMF), World Bank, and World Trade Organization (WTO) have played in the creation of global markets. II. In contrast to the market-led model of globalization, the corporate-led model recognizes the agency of nation states, corporate interests, and international institutions in the creation of global markets. Whereas the market-led model begins with global markets and ends with state and industry adaptation, the corporate-led model begins with institutional agency and culminates in the creation of global markets. The corporate-led model not only provides non-functionalist explanation of how global financial and investment markets were created; it can also explain the accounting profession's role in the globalization process. The corporate-led model posits that the accounting profession does not merely adapt to forces of globalization. To the contrary, the accounting industry, in reliance with the state and international institutions, has played and continues to play an active role in the structuring global markets for accounting services. The globalization of the 21st century even though has a lot of benefits, poses some threats to accountants and the accounting profession as a whole. There are three groups of accountants who are prone to these threats. These groups are: * Accountants working for (or providing outside services to) foreign-owned companies. * Accountants working for (or providing outside services to) locally-based enterprises that are expanding internationally. * Accountants whose knowledge, skills, and abilities limit them to performing only low-value, compliance-oriented work. There also two groups of accounting professionals that are most likely to benefit from increased globalization. These are: * Accountants who expand their financial accounting knowledge, skills, and abilities so as to gain mastery of changing local and International Accounting Standards (IAS). * Accountants who complement their compliance-oriented knowledge, skills, and abilities with the performance oriented knowledge, skills, and abilities of management accounting. Bruce Pounder, CMA, CFM, in his article; "How Globalization is Affecting U.S Accountants", said efforts are being made to mitigate the above threats of globalization in recent years. He made reference to the fact that, compliance with the International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standard Board (IASB) is now required of publicly-traded companies in most countries. In addition to the efforts to fit the accounting profession in the globalization of the 21st century, Bruce Pounder in his article stated that, while there many similarities between the international standards and the U.S. Generally Accepted Accounting Principles (G.A.A.P.), significant differences do exit and today, U.S standards are not automatically presumed to be 'better'. This situation has affected the process by which both U.S and international standards are developed and maintained and has already resulted in changes in both U.S and international standards. According to the IASB chairman Sir David Tweedie, "IFRS are now used by 100 countries throughout the world. By 2012 we expect the accounting standards of major economies such as those of Japan, Canada, China, and India to converge with IFRS while at the same time differences between international standards and the U.S G.A.A.P are being eliminated." As part of the efforts to make the accounting profession run parallel with the globalization of the 21st century, the Financial Accounting Standard Board (FASB) in the U.S and the International Accounting Standard Board (IASB) jointly issued a memorandum of understanding known as the "Norwalk Agreement" in October 2002 to mark a significant step toward formalizing their commitment to the convergence of U.S and International Accounting Standards. As result of this the FASB undertook several key initiatives to further the goal of convergence of U.S G.A.A.P. with IFRS. For example, the FASB pronouncement has updated rules concerning inventory cost, exchange of non-monetary assets, and accounting changes and error corrections primarily to achieve convergence with IASB standards. David Illingworth (The Vice President of the Institute of Chartered Accountants, England and Wales), in a speech entitled, "Accounting Profession and Globalization" suggested that the accounting profession can fit into the globalization of the 21st century by accepting the need for global standards in its work. This he said was the reason why the ICA (England and Wales) work through the International Federation of Accountants (IFA) to ensure that all accountants and auditors in the world subscribe to a global code of ethics. Bruce Pounder concluded that, the accounting profession can fit into the recent globalization by enhancing the knowledge, skills, and abilities, and credentials of its members. Life-long learning is not merely desirable. It is essential for career success in an increasingly globalize world. Globally-recognised credentials like the Association of Chartered Certified Accountants (ACCA), Certified Management Accountants (CMA), and Certified Internal Auditors (CIA) can make complements to localized credentials. Graham Ward (President of the IFA) states "we firmly believe that it is the public's interest to have a single set of international standards, of the highest quality, set in the public interest by an international expert body which transparently consults with, and recognises the legitimate interests of, the international community". The key assumption in the above statement is that universal acceptance of a single set of high quality standards would make the global market more efficient by enhancing consistency and comparability of financial statements. In conclusion, as businesses become increasingly globalize, there is clearly more pressure on accounting profession to expand and enhance the knowledge, skill, and abilities of its members beyond what they are currently likely to possess in order to fit well into the globalization of the 21st century. ALBERT TACHIEE-MAIL: albert.tachie@bollore.com TEL: +233 243 860 333
What are accounting conversion and concept?
accounting concept are the basic knowledge of accounting on which basis monetry transation are made in accounting book.
What efforts are made to overcome accounting limitations?
what efforts have been made to overcome the limitations of financial accounting
What do you mean by Accounting standard?
Accounting standard' means a principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions Standard components is a food technology term, when manufacturers buy in a standard component they would use a pre-made product in the production of their food. They help products to be the same in.There are currently 41 IAS and 9 IFS. Although not all of the ISAs are still used as they superseded by other standards and made outdated.
When to use accounting accruals?
In accrual based accounting, expenses are recognized in the period in which they are incurred if measurable.
