Financial Reporting Integrity

CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting

Evaluate prudence reintroduction, revised asset and liability definitions in the Conceptual Framework.

Question

The Conceptual Framework 2010 was criticized for its lack of clarity, the exclusion of certain important concepts, and for being outdated in terms of the IASB’s current thinking. The revised Conceptual Framework 2018 includes some new concepts such as prudence, provides updated definitions and recognition criteria for assets and liabilities, and clarifies some important concepts in a well-arranged eight chapters. Chapter four of the revised Conceptual Framework 2018 on elements of financial statements redefined some basic elements and concepts.

Required:

a. Evaluate the arguments for and against re-introduction of prudence into the Conceptual Framework.
(7 Marks)

b. Identify TWO of the concepts (Asset and Liability) which definitions were revised and justify the reasons for revised definitions.
(8 Marks)

Answer

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Tags: Asset Definition, Conceptual Framework, Financial Reporting Integrity, Liability Definition, Prudence
Level: Level 3

Topic: Introduction to Corporate Reporting

CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Evaluate IFRS solutions to accounting challenges, commercial pressures, and accounting techniques under such pressures.

Question

Directors of companies are expected to issue financial statements that present fairly the financial position, financial performance, and cashflows of their entities. Hence, financial statements are supposed to be a faithful representation of the effects of transactions and other events in accordance with the definition and recognition criteria for assets, liabilities, income, and expenses set out in IFRS. However, a fair presentation can encompass a range of different figures because alternative accounting policies can produce different results. Also, the application of accounting policies in accordance with IAS 8 is often based on estimates and judgments. Valuations and estimations are key factors in drafting financial information. Regulatory frameworks, both local and global, asserted conscious efforts to address some of these problems. However, the strength of a regulatory framework may be undermined by commercial pressures on those responsible for preparing financial statements.

Required:

a. Evaluate the ways in which IFRS has tried to alleviate the problems illustrated above.
(5 Marks)

b. Discuss FIVE likely commercial pressures on preparers of financial statements.
(5 Marks)

c. Examine TWO techniques employed by accountants to produce desired accounting results when faced with such pressures.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Commercial Pressures, Estimation Judgments, Financial Reporting Integrity, IFRS
Level: Level 3

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting

Evaluate prudence reintroduction, revised asset and liability definitions in the Conceptual Framework.

Question

Required:

a. Evaluate the arguments for and against re-introduction of prudence into the Conceptual Framework.
(7 Marks)

b. Identify TWO of the concepts (Asset and Liability) which definitions were revised and justify the reasons for revised definitions.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Definition, Conceptual Framework, Financial Reporting Integrity, Liability Definition, Prudence
Level: Level 3

Topic: Introduction to Corporate Reporting

CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Evaluate IFRS solutions to accounting challenges, commercial pressures, and accounting techniques under such pressures.

Question

Required:

a. Evaluate the ways in which IFRS has tried to alleviate the problems illustrated above.
(5 Marks)

b. Discuss FIVE likely commercial pressures on preparers of financial statements.
(5 Marks)

c. Examine TWO techniques employed by accountants to produce desired accounting results when faced with such pressures.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Commercial Pressures, Estimation Judgments, Financial Reporting Integrity, IFRS
Level: Level 3

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Question Tag: Financial Reporting Integrity

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CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting

Evaluate prudence reintroduction, revised asset and liability definitions in the Conceptual Framework.

CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Evaluate IFRS solutions to accounting challenges, commercial pressures, and accounting techniques under such pressures.

CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting

Evaluate prudence reintroduction, revised asset and liability definitions in the Conceptual Framework.

CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Evaluate IFRS solutions to accounting challenges, commercial pressures, and accounting techniques under such pressures.

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Question Tag: Financial Reporting Integrity

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CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting

Evaluate prudence reintroduction, revised asset and liability definitions in the Conceptual Framework.

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CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Evaluate IFRS solutions to accounting challenges, commercial pressures, and accounting techniques under such pressures.

You're reporting an error for "CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting

Evaluate prudence reintroduction, revised asset and liability definitions in the Conceptual Framework.

You're reporting an error for "CR – Nov 2021 – L3 – Q7 – Introduction to Corporate Reporting"

CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Evaluate IFRS solutions to accounting challenges, commercial pressures, and accounting techniques under such pressures.

You're reporting an error for "CR – Nov 2021 – L3 – Q6 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

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