Accounting :: essays research papers

Preface monetary statements argon prep atomic number 18d and presented for external characterrs by many enterprises around the world. Although much(pre titulary) financial statements may appear similar from country to country, there are differences which pee probably been caused by a variety of social, economic and ratified circumstances and by contrastive countries having in mind the needs of different users of financial statements when setting national requirements. These different circumstances have direct to the use of a variety of definitions of the elements of financial statements that is, for example, assets, liabilities, impartiality, income and expenses. They have also resulted in the use of different criteria for the recognition of items in the financial statements and in a preference for different bases of measurement. The scope of the financial statements and the disclosures made in them have also been affected. The International Accounting Standards Committee (IA SC) is committed to narrowing these differences by seeking to harmonise regulations, chronicle standards and procedures relating to the preparation and presentation of financial statements. It believes that make headway harmonisation can best be pursued by cogitate on financial statements that are prepared for the purpose of providing information that is profitable in making economic decisions. The Board of IASC believes that financial statements prepared for this purpose meet the common needs of most users. This is because nearly all users are making economic decisions, for example, to (a) decide when to buy, hold or sell an equity investment (b) assess the stewardship or account office of management (c) assess the ability of the enterprise to pay and provide other benefits to its employees (d) assess the security for amounts bestow to the enterprise (e) determine taxation policies (f) determine distributable profits and dividends (g) prepare and use national income statistic s or(h) regulate the activities of enterprises. The Board recognises, however, that governments, in particular, may think different or additional requirements for their own purposes. These requirements should not, however, affect financial statements print for the benefit of other users unless they also meet the needs of those other users. fiscal statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial heavy(p) maintenance concept. Other models and concepts may be much appropriate in order to meet the objective of providing information that is effectual for making economic decisions although there is presently no consensus for change. This Framework has been developed so that it is applicable to a range of accounting models and concepts of capital and capital maintenance.