- 15 Marks
CR – May 2021 – L3 – Q6 – Regulatory Environment for Corporate Reporting
Discuss the rationale for different regulatory frameworks and analyze sources of corporate financial reporting regulations in Nigeria.
Question
International Financial Reporting Standards (IFRS) are sets of accounting standards, and it is unrealistic to assume that these standards could not replace those based around rules. However, where a rule-based system has been in operation, there is likely to be an expansion of ethical challenges for both accountants and auditors involved with financial statements if a principles-based approach is adopted. Therefore, regulatory authorities need to ensure ethical practices to achieve high-quality financial statements. This is drawing attention to the need for closer or greater monitoring. Apart from this fact, corporate financial reporting regulations have been in operation before the advent of IFRS.
Required:
a. Appraise the rationale behind different regulatory frameworks for corporate financial reporting. (8 Marks)
b. Analyze in detail the various sources of regulations for corporate financial reporting in Nigeria. (7 Marks)
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