Accounting Theory Assignment

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1. The International Financial Reporting Standards (IFRS) are a set of accounting standards that can be used to bring about one set financial reporting in the world basis. The necessary of international accounting standards arises from the increasing globalization of business and the growth of capital markets in the world. Therefore, there is a large demand for accounting information which can be comparable across companies in different countries.

The IFRS is issued by the International Accounting Board Committee and is constantly reviewed and revised to consider the current position and the need for the financial reporting. The members of the above Committee believed that the adoption of IFRS in their countries and the disclosure of compliance requirements would have a significant impact and bring to the quality of financial statements. It would be improved and increasing the comparability. It also can enhance the credibility and consequently the usefulness of financial statements in the world.

2. There are three factors are causing Brithish businesspeople to be upset about the prospect of adopting the IFRS as follow: i. IFRS are more complex than existing Brithish accounting rules and making accounts more opaque and less useful. ii. It requires listed companies to dig out previously unreported figures and disclose much other information in a different way. iii. It reserved about the standards’ conceptual foundations, the use of ‘fair value’ accounting, and growing US fluence over their form.

3.i Empirical evidence is evidence from observations and experimentation. The above three factors are based on the author’ observation after adopting the IFRS in the UK Company. Therefore, it is empirical evidence.

ii. The analysis is leading from the factor to the complaints about adopting the IFRS in naturalistic approach.

Scientific approach is an approach to a theory to explain the observed behaviour and use that theory to...
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