Accounting for Business

Topics: International Financial Reporting Standards, Financial statements, International Accounting Standards Board Pages: 3 (883 words) Published: November 7, 2012
QMUL School of Business and Management BUS 106: Accounting for Business Coursework 2012

In this age of globalisation, while it is absolutely necessary for large listed companies in different countries to prepare financial statements using uniform accounting standards, such as International Financial Reporting Standards (IFRSs), the preparation of management accounting reports remains optional. Required: Critically examine the above statement by analysing the arguments for and against the use of uniform (international) accounting standards in the preparation of financial statements and the flexibility in the preparation of management accounting report.

Coursework Guidance In the past, the UK has had its own sources of regulation that accountants must follow when producing financial statements for listed companies and so have other countries. In this age of globalisation there has been pressure, since the 1990’s, for the international harmonisation of accounting regulations (for all listed companies to have the same accounting standards regardless of which country they are listed in). This has involved individual countries agreeing to revise their own accounting regulations, so that an agreed set of international financial reporting standards could be created (convergence). The IFRSs (International Financial Reporting Standards) are issued by the IASB (International Accounting Standards Board) and are now accepted in most parts of the world. Your answer should consider these issues in greater detail and consider why, in an age of globalisation, international accounting harmonisation is important - if indeed it is at all. You should also consider in your answer the extent to which harmonisation has been achieved to date and what barriers needed to be overcome. In addition, you should contrast these advances in the regulation of financial accounting with the flexibility still permitted in management accounting.

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