Financial and Managerial Accounting Study Set 1

Business

Quiz 29 :
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Quiz 29 :
Cases

International Financial Reporting Standards International Financial Reporting Standards (IFRS) are framed by the International Accounting Standards Board (IASB). These standards provide accounting methods, rules and principles which are framed and finally approved by International accounting standards board (IASB). IFRS are framed for the purpose of disclosure, preparation, and presentation and of international financial statements. Importance of global accounting standards in today's business environment: In recent years, there is lot of increase in international trade due to the removal of trade barriers and growth in cross-border transactions among the countries. As a result, often companies are reporting their financial statements to users outside the home country. The companies are reporting their financial statements in such a way that the users of other countries would also be able to understand the financial statements. The removal of trade barriers and dramatic increase in international commerce led to international reporting of financial statements in accordance with the globally accepted accounting standards. Now a days, investors of different countries are investing their funds in other countries. The investors take investments decisions after going through the financial statements of the companies located in other countries. To make the investors understand the financial statements, the Companies need to follow global accounting standards in their preparation and reporting of financial statements. The need for the global accounting standards in international reporting of financial statements arises because of the removal of trade barriers between countries and the dramatic increase in international commerce. These global accounting standards are required to meet the financing reporting needs of an increasingly global business environment.

International Financial Reporting Standards (IFRS) are a set of global accounting standards which are followed by companies in their financial reporting. These financial standards are followed by Companies in meeting the financial reporting needs of an increasingly global business environment. These standards are developed by an international standard-setting body called the International Accounting Standards Board (IASB). IASB is an independent entity that establishes accounting rules that can be used by a variety of countries, with the goal of developing a single set of global accounting standards. International Financial Reporting Standards (IFRS) are used by Companies that issue publicly traded debt or equity securities, called public companies, in countries that have adopted IFRS as their accounting standards. All 28 countries in the European Union (EU) have been required to prepare financial statements using IFRS. Other major economies like Japan, India are in the process of implementing IFRS. China is converging its accounting standards with IFRS over time.

International Financial Reporting Standards (IFRS) are a set of global accounting standards which are followed by companies in their financial reporting. These financial standards are followed by Companies in meeting the financial reporting needs of an increasingly global business environment. The body responsible for setting these standards is International Accounting Standards Board (IASB). These standards are developed by an international standard-setting body called the International Accounting Standards Board (IASB). IASB is an independent entity that establishes accounting rules that can be used by a variety of countries, with the goal of developing a single set of global accounting standards. In United States, the generally accepted accounting principles (GAAP) for public companies are established by Financial Accounting Standards Board (FASB).

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