The main objective of financial reporting according to the IASB's Preparation and Presentation of Financial Statements framework is that of providing adequate information in order to enable shareholders conduct economic decision making. This brought the debate of whether such objective neglected the importance of the stewardship assessment by the part of shareholders. In the past decade the IASB and the US FASB have been working on a joint project to develop a conceptual framework for financi...
Introduction Audit is an evaluation of a person, organisation, system, process, enterprise, project or product (Graham W. et al., 2009). It plays a significant role in the accountancy market. Key Note reports that the global accountancy market is dominated by the Big Four global accountancy firms (see Appendix 1). They audit all the top 100 public companies as well as the majority of the top 350 companies. However, nowadays, a controversy over the roles of the Big Four accounting firms has be...
According to Derek French 1985 Stewardship is 'The duties and obligations of a person who manages something on behalf of other persons'[Derek French, 1985] The UK Stewardship code was published in 2010, according to the Financial Reporting Council the Stewardship Code aims to enhance the quality of engagement between institutional investors and companies. However earlier this year the Financial Reporting Council have published a report entailing further recommendations on the stewardship func...
Write an essay of no more than 1,500 words that identify and explain the different sources for the rules and regulations that a UK company has to comply with in order to produce its annual report. The purpose of creating annual report for companies is to keep the shareholders and others informed with the company's activities, progress and the future plans of the company, beside that it also shows the company's financial position and performance. Lenders, suppliers and other trade creditors, c...
When it is about decision making concerning complex systems (for instance; Management of organizational operations, investment portfolios or industrial processes, Military command and control systems or plant operational controls for nuclear power generation) the intellectual capabilities get pressed to the limit. Individual communications amongst the variables of a system may be understood well, but it is quite a intimidating task to predict the system's reaction to external manipulation, ex...
Compare and contrast the objectives of GPFR's in the current AASB Framework with that proposed in the IASB Exposure Draft. Do you think the IASB proposal is an improvement? Why, or why not? Do you think that the objective in either of these documents is appropriate? Why, or why not? "In view of the information needs of the users of general purpose financial reports identified in the preceding paragraphs, the position adopted in this Statement is that the objective of general purpose financial...
QUESTION 1 (A) There are a lot of purposes of an accounting conceptual framework. The main purpose of financial reporting under this accounting conceptual framework is not to help management to make decisions, or calculate taxable income and etc. (Alexander & Nobes, 2007) However, the purpose of accounting conceptual framework is act as a framework for setting accounting standards. It act as a guideline to the Board in developing accounting standards , yet is also as a guide to resolving acco...
Par value, or a face value, is the minimum prices of a share of stock which assigned by the issuer that can be sold for, according to the conditions and terms that found in the regulations of issuing company. The par value is an arbitrary amount that determined when a company was incorporated. It is also an initial price of the stock that introduced in the market place. For instance, 20% preference shares of RM1 each. RM1 is the par value. Par value has no relation to the market value of a st...
Financial performance, as a part of financial management, is the main indicator of the success or failure of the companies. Financial performance analysis can be considered as the heart of the financial decisions. Rational evaluation of the performance of the companies is essential to prepare sound financial policies and to attract potential investors. Shareholders are interested in EPS, dividend, net worth and market value per share. Management is interested in all aspects of financial perfo...
This report summarises the financial performance of the Glaxo Smith Kline. I have analysed the change in share price of Glaxo Smith Kline in the recent years and pointed out the reasons for the change. Financial performance of the company has been analysed by calculating different relevant ratios such as Return on Capital Employed, Asset turnover ratio, etc. Cash Flow Statement has also been used to discuss the financial performance of Glaxo Smith Kline. This Report also shows the problems fa...
