Questions On Financial Reporting Standards Essay

1655 Words Nov 14th, 2016 7 Pages
In order to approach this topic for discussion, we should first clarify the meaning of key terms introduced in the thesis and examples of the levels at which they exist. Financial reporting standards are defined most cleanly as a set of guidelines and rules for conveying formal records of financial activities of an entity, capable of being applied consistently across the level at which they are designed. This can be locally, within a small or independent economy, or globally, as is the case with the IFRS and US GAAP, both of which have a wide range of users, both governments and firms pursuing the respective benefits which come from following a fixed set of accounting standards. Uniformity in financial reporting would involve every reporting entity applying the same set of standards in the same way, without changing any aspect of their character, this is where the difficulty arises in setting financial reporting standards, as we live in a world where circumstances can vary to a great extent and creating a uniform set of standards to cover all possibilities seems nearly impossible. To assess the difficulty of setting uniform standards and investigate Ball (2006)’s notion, we’ll observe why uniformity is believed to be possible and the major challenges it faces, ranging from Ball’s own suggestion of Political interference; to the impacts of Culture, Implementation and Infrastructure on Financial Reporting and what it means for harmonious reporting (Street and Gray 2001).…

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