Reference no: EM132979358

Question -

a) Can you think of reasons why there could be claims that financial statements that are prepared in accordance with accounting standards are not true or fair?

b) Professional judgement plays an important role in financial reporting. Identify five areas in which the accountant preparing financial statements must make professional judgements that will affect the content of the statements. You are required to indicate at least two affected accounts in each area you identified.

c) Ball (2006, p.17) makes the following comment: "In sum, even a cursory review of the political and economic diversity amongst IFRS adopting nations, and of their past and present financial reporting practices, makes the notion that uniform standards alone will produce uniform financial reporting seem naïve."

Critically assess the validity of Ball's comments and discuss five factors which lead to national differences in accounting (Hint: treat different cultural dimensions as one factor)