Qualitative characteristics of relevance and reliability

Assignment Help Accounting Basics

Reference no: EM1378834

Question 1

"Much has been written in previous years about the politicisation of the accounting standards-setting process. Politicisation has occurred because the financial reports of entities impact on a number of competing economic interests in society". What is meant by the politicisation of accounting standards?

Illustrate your answer with examples of various „political pressures? that may arise in the standard-setting process.

Question 2

The International Accounting Standards Board (IASB) releases International Financial Reporting Standards (IFRS). IFRS are adopted directly by some countries, whilst others (such as Australia) release standards under the name of their domestic accounting standard setter, but based upon the standards issued by the IASB. Debate the arguments for and against an individual country adopting IASB standards as the basis for its local accounting rules?

Question 3

The AASB Framework (paragraphs 24-46) specifies four basic qualitative characteristics, all of which are needed to present a 'true and fair' view of a company?s financial affairs. These characteristics are:

1. Understandability
2. Relevance
3. Reliability
4. Comparability.

(a) Explain clearly why each of the qualitative characteristics discussed in the IASB conceptual framework is important. Which characteristic or characteristics do you think are the most important? Why?

(b) Why is there frequently a conflict between the qualitative characteristics of relevance and reliability?

Requirements

You are required to write an essay based on the above topic (by answering the questions). This assessment is an individual assignment and you should complete the assignment in order to pass the course. When preparing your assignment, you should refer to the assessment criteria listed below as well as to any relevant advice posted on the course website by the Course Coordinator. It is your responsibility to check the Moodle website at least weekly.

Reference no: EM1378834

Questions Cloud

This is an accord as well as satisfaction and y2k cannot sue : Which of the subsequent statements is correct? a. Y2K's promise to exhortation from suing Alex wasn't supported by legal consideration

Explain your rationale including single greatest strength : Analyze various research methods employed in psychology to determine which research method seems most applicable across greatest number of situations.

Determine necessity for a one-to-one correspondence : Determine necessity for a one-to-one correspondence between a specific representation in mind and a physico-chemical condition in some specific neurons/synapses in associated brain.

Deliberate in detail the proposed strategy : Choose one of the strategies listed below that are widely used for entering foreign markets as well as deliberate in detail the proposed strategy.

Qualitative characteristics of relevance and reliability : Explain clearly why each of the qualitative characteristics discussed in the IASB conceptual framework is important. Which characteristic or characteristics do you think are the most important? Why?

Explain gender role stereotypes influence : Do you think which reproductive roles of males and females influences gender roles. Explain how do you think which gender role stereotypes influence sexual development of young children.

Explain managing human resource project : Explain Managing Human Resource Project- Estimate the importance of understanding the numerous stages of the project life cycle and its possible contributions to a project.

Marianne jennings international code of ethics : Use the fact pattern you conventional in the above Marianne Jennings International Code of Ethics question to answer this question. Analyze as well as propose a solution to the problem you received above using the front page of the newspaper metho..

Leadership and organizational behaviour class : This is for a leadership and organizational behaviour class- When it comes to people who will not give up their resistance to change, would not it just be easy to fire them?

User Account

All Pages