International accounting standards are unusable from an investor s viewpoint and make global allocation of capital more complex instead of simplifying it . Chief financialofficers at large listed entities say. Millions of dollars have been spent adopting international financial reporting standards to help investors make like-for-like comparisons between companies inglobal capital markets. But CFO s say they are useless and have driven financial disclosuresto unmanageable levels…… Investors don t openthe 60-70 pages of IFRS account, theyrely on investor reports and management briefing to understand a company s numbers……. The criticism comes as the United States, the world s largest capital market, decideswhether to retire its domestic accounting standard (US GAAP) and adopt IFRS .Australian Financial Review, 6/2/2012.
In the light of the above statement;
Describe the IASBConceptual Framework s perspective of users and their decisions.
Which qualitative characteristics of financial reporting, as per the IASB Conceptual
Framework, appear not to be satisfied by current reporting practices as per IFRS.
In your opinion, do corporate financial reports satisfy the central objective of financial
reporting as identified in the Conceptual Framework? Discuss and give example to support your opinion.Assessment criteria
2000 words max.
Very Good (D)
1. Introduction (10)
2. Body/Discussion (40)Criticalevaluation of topic
3. Recommendation/s (10) Conclusion (5)
4. Examples (10)
6. Referencing, citations (5)
7. Evidence of reading, quality and quantity (10)
8. English expression, coherence, grammar and spelling. Logical flow of ideas