International Accounting Standards Board

by Magnum compared to LBB. This is because the information and computation for the taxation in Magnum was more detailed and divided into several computations such as major components of income tax expense, reconciliation between tax expense and accounting profit and…

would work toward convergence of existing U.S. standards not included in the convergence project to IFRS. This, according to Beswick, would ensure that existing guidance was appropriate for U.S. companies on a standard to- standard basis; when the IASB would issue new standards, FASB would decide whether to adopt them. As described in a May 2011 SEC staff paper, Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for…

Management can sometimes have some sort of say on the composition of the board of directors, from where the audit committee is formed. If this is the case, it can only be a negative for the firm and management should be educated as to the value of a truly independent audit committee (Cohen, et al., 2002a). Agency theory can be used to demonstrate how crucial independence is from management in order for the audit committee and board in general to effectively monitor and control management’s…

of GAAPs The diversity of world’s industrial sector has necessitated the adoption of common accounting policies and principles. Firms especially those operating at multinational levels largely require to embrace common set of financial reporting frameworks in a bid to enhance uniformity and consistency in financial reports. Different countries all over the world have been evident to adopt varying standard that govern the presentation and recognition of the items in financial reports. However,…

The IFRS is a set of international accounting standards that state how specific types of transactions should be reported in a financial statement (Gasper et al., 2014). IFRS are intended to deliver a single set of GAAP that can be used throughout globe by businesses. The main objectives to provide these reports include: increasing organization of accounting principles and disclosure to meet the needs of global market, providing an financial…

Accounting calls for the use of estimates in the preparation of the required financial statements. Estimates in this case relate to the use of precise amounts in financial statement elements that cannot be precisely determined. Therefore the amounts are subjective and lack precision because they are plagued by the use of subjective management foresight to determine the values utilized in the financial reports. Where the use of estimates is encouraged there is definitely a lack of accuracy and…

The circular economy is defined as an economic system that revolves around the processes of recycling, reusing and recovery of materials (Kirchherr J, Reike D, Hekkert M 229.) CE (circular economy) was first introduced as a concept in 1989 by environmental economists David W. Pearce and R. Kerry Turner and has recently been adopted by a number of countries. In 2015, Denmark, Netherlands, Japan, Sweden and Scotland agreed on CE legislation (Braw. E). The circular economy is a relatively new…

negligence exist. Duty of Care “Duty of care is the duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by ‘reasonable person standard,’ constitutes the tort of negligence.” (Roger, Clarkson, Cross 2012 p. G-12)…

Australian airspace is currently following the airspace act of 2007 and the airspace regulations 2007. The office of Airspace Regulation exercise powers under the airspace regulations (2007) are to regulate and administer Australian airspace, including danger, prohibited and restricted areas where certain types of actions take place that may present a risk to aviation activities. Australian airspace administration is generally aligned with ICAO airspace classes and associated air traffic…

AASB 15 in place of the existing revenue standards (118, and 111); and
 Importance of Revenue recognition Revenue information remains paramount in accordance with the financial functioning of an entity. Thus, information centred on the “nature, timing, amount” and “ambiguity of revenue and cash flows” from “customer contracts” provides users of financial statements comparability on the performance/position of entities within the period. Need For Standards Conversely, limitations and…