Advanced Financial Reporting Essay Example | Topics and Well Written Essays - 2000 words - 1

Advanced Financial Reporting - Essay Example These standards are promulgated not by individuals but they are formed by a committee which includes people from all walks of life. The reason behind this is that inclusion of people from all walks of life is that this committee wants to create principles or accounting laws which are helpful for everyone in the every field of life. There are several organizations which work day-in and day- out for developing such principles. These principles give much more meaning to the financial statement and provide value to the financial figures contained in these statements. One such organization is International Accounting Standard Board, IASB, which was formed in 2001. The purpose of this organization was to propose different accounting standards which might be the basis of preparation of financial statements. Since, these rules are followed by all the business; they make the comparisons between two businesses more useful and more accurate. The IASB Handbook describes the consultative arrangements of the IASB. The Trustees’ Procedures Committee is in charge of regularly reviewing and updating the IASB due process procedures. (IASB.org) In the times of recession also, these standards have become very important in the valuation of various businesses and in giving meaning to the financial statement prepared by these businesses. Some people still favor the fact that these accounting standards are really useful for the interpretation financial prepared by various businesses headed by different accountants having different mind-set and company policies, where as others people hold the view that these accounting standards only distort the financial picture of these businesses and give an unrealistic picture of theses businesses, in the times of recession. They oppose these standards because they think that certain accounting standards ‘window dress’ the actual position of the business, and can be misleading for the users of financial statement. By window-dressing