>> Financial Accounting
"International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external".
a) Based on the above statement, Students are required to do research and write an essay of 1500 words (with proper references) which demonstrates their understanding about the Topic, outline the justifications and controversy of IFRSs. Journal Articles, Newspapers, Magazines and Websites will be valuable sources of information for this assignment.
b) Students are also required to choose and comment on a relevant IFRS standard either related to capital market or social accounting or environmental accounting.
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With the decade of time world are becoming more and more globalized,investors from various country are investing in other countries, moreover most of the country depend upon foreign debt to meet their financial needs. In past many companies having various subsidiary throughout the world had difficulty in assessing financial performance of its various subsidiary IFRS has come up as a global financial language to provide for preparation of financial statement as per global accounting standard.
IFRS provide a framework where organization, government and investor can compare their financial performance against foreign competitors. This unable those companies to improve their performance, it also allows various multinational companies having subsidiaries in other countries to prepare a global financial statement understandable by all. It enable multinational companies to stay up to date in the globalized market. IFRS enhance transparency of financial reporting by proving a common global language for the firm having subsidiaries in various region. This would lead to easy cross broader investment at lower cost of capital. Investor form various region can assess the performance of company and thus make a well informed investment decision. Otherwise using different standards create difficulty in interpreting financial performance.