Reference no: EM131562319 , Length: 2500 Words

ASSIGNMENT REQUIREMENTS

The IASB Conceptual Framework explains that useful information is faithful and relevant. It goes on to explain that faithful requires complete, neutral and free from error information that is correctly measured, presented and complies with the principles of substance.

A potential investor in International Airlines Group (IAG) does not understand the meaning and significance of several key figures. facts and accounting policies in the year ended 31 December 2015 financial statements. You have been approached for advice.

Illustrate the usefulness of the information provided in IAG financial statements for the year ended 31 December 2015 in the following areas:

a) Any one area of your choice eg; you might discuss the reporting of revenue. tangible assets, intangible assets, impairment tests, provisions or other areas.

b) Pension schemes

c) Deferred tax

Marks for academic quality: appropriate use of referencing, extent and evidence of research, structure of essay, coverage of issues, presentation and use of appropriate language.

Your answer should aid the potential investor to understand:
- How the IASB Conceptual Framework for Financial Reporting affects each area you discuss.
- the relevant accounting standards requirements for each area you discuss.

Specific Guidance
The financial statements of IAG are on pages 99 to 161 of its annual report for the year ended 31 December 2015. Information on other pages of the annual report is not relevant to this assignment.

Note 2 Accounting policies on pages 105 to 114 may be of particular use to your assignment, as this is where the accounting treatment IAG has used for each accounting area is explained.

To achieve a pass level mark you must ensure that you: describe and explain the current Conceptual Framework for Financial Reporting requirements and how accounting policies used by International Airline Group attempt to comply with these in order to supply useful information to investors. Additionally, you must apply knowledge gathered from a range of academic sources to explain the accounting treatment adopted under IFRS as well as illustrating your points with examples of actual reporting practice at International Airline Group. This will require secondary research.

To achieve higher marks, in addition to the requirements to achieve a pass mark, you will need to analyse, discuss and evaluate: the rules and regulations espoused by various accounting standards and the Conceptual Framework, reasons for any differences in approach, how the rules are implemented in practice and alternative approaches promulgated by academics and othe interested parties, which might improve the usefulness of the information in the annual reports c International Airline Group. Secondary research will therefore be required.