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    2018 PDF

    Uploaded by

    Nashon Chacha
    The document contains 6 questions related to international accounting standards and financial reporting: 1. Critically evaluates the claim that a lack of international enforcement has hindered accounting comparability under IFRS. 2. Discusses ways US GAAP may or may not be considered "better" than IFRS and evidence researchers have found. 3. Explains why the EU abandoned accounting harmonization directives in favor of requiring adoption of IFRS in 2002. 4. Summarizes the development of accounting in China since the 1990s and key driving factors. 5. Analyzes why international classifications sometimes group UK and US accounting together and sometimes apart, considering differences in standards and classification methods.

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    2018 PDF

    Uploaded by

    Nashon Chacha
    11 views2 pages
    The document contains 6 questions related to international accounting standards and financial reporting: 1. Critically evaluates the claim that a lack of international enforcement has hindered accounting comparability under IFRS. 2. Discusses ways US GAAP may or may not be considered "better" than IFRS and evidence researchers have found. 3. Explains why the EU abandoned accounting harmonization directives in favor of requiring adoption of IFRS in 2002. 4. Summarizes the development of accounting in China since the 1990s and key driving factors. 5. Analyzes why international classifications sometimes group UK and US accounting together and sometimes apart, considering differences in standards and classification methods.

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    The document contains 6 questions related to international accounting standards and financial reporting: 1. Critically evaluates the claim that a lack of international enforcement has hindered accounting comparability under IFRS. 2. Discusses ways US GAAP may or may not be considered "better" than IFRS and evidence researchers have found. 3. Explains why the EU abandoned accounting harmonization directives in favor of requiring adoption of IFRS in 2002. 4. Summarizes the development of accounting in China since the 1990s and key driving factors. 5. Analyzes why international classifications sometimes group UK and US accounting together and sometimes apart, considering differences in standards and classification methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11 views2 pages

    2018 PDF

    Uploaded by

    Nashon Chacha
    The document contains 6 questions related to international accounting standards and financial reporting: 1. Critically evaluates the claim that a lack of international enforcement has hindered accounting comparability under IFRS. 2. Discusses ways US GAAP may or may not be considered "better" than IFRS and evidence researchers have found. 3. Explains why the EU abandoned accounting harmonization directives in favor of requiring adoption of IFRS in 2002. 4. Summarizes the development of accounting in China since the 1990s and key driving factors. 5. Analyzes why international classifications sometimes group UK and US accounting together and sometimes apart, considering differences in standards and classification methods.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    1.

    “The international standard-setter’s e orts to increase comparability of


    accounting have failed because of the absence of an international monitoring and
    enforcement agency.” Critically evaluate the extent to which each aspect of this
    quotation is correct.

    2. “US GAAP is a better set of accounting requirements than International Financial


    Reporting Standards (IFRS)”. Explain various ways in which US GAAP could or
    could not be regarded as “better”, and how one could check if the statement is
    true. What evidence have researchers found in this area?

    3. Explain why the European Union decided to abandon its programme of


    harmonisation based on EU Directives and to issue the ‘IAS Regulation’ in 2002.

    4. Explain how accounting in China has developed since the early 1990s, and
    explain what has driven these various developments.

    5. Explain why some international classi cations put UK accounting with US


    accounting but some classi cations put them in di erent groups. In your answer
    discuss both accounting di erences and di erences in the data and methods used
    by classi ers.

    6. The following shows extracts from the nancial statements of a German


    company under German accounting rules. The company expects soon to be listed
    on a stock exchange, so it plans to prepare IFRS statements.

    Assets (€m)
    Cash 800
    Receivables (including foreign currency 1,600
    ones)
    Inventories (LIFO basis) 324
    Investment properties 950
    Other property, plant 3,200
    Intangible assets 4,000
    Total assets 10,874

    Provisions (€m)
    Pension liabilities 1,000
    Other provisions 1,600
    Deferred tax 420
    Total provisions 3,020
    fi
    ff
    fi
    ff
    fi
    fi
    ff
    ff
    Required: Examine the items in the lists of assets and provisions above. Which of these
    items might change on adjustment from German accounting to IFRS? For each change,
    explain:

    • why it might happen,


    • whether or not it depends on an IFRS policy choice available to the company,
    • the likely direction of the change (increase and decrease), and
    • the effect on the gearing/leverage ratio (debt on equity) and the pro tability ratio (return
    on net assets).

    fi

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