Governments around the globe have adopted localized regulations and laws pertaining to the reporting of financial statements. However, as a global economy evolves, standardization of these reports is becoming increasingly important. Investors and suppliers looking toward foreign companies as investment opportunities or business partners need to be able to rely on the fact that the information is not only accurate, but also prepared following a common set of procedures. In a response to the need for a comprehensive reporting model, the FASB and IASB proposed making changes to financial statements.
Using the FASB, the IASB website, and your Learning Resources, locate examples of the current and proposed formats of financial statements. Write a 2- to 4-page paper analyzing how the two statements are derived from the conceptual framework. Be sure to compare (similarities and differences) both the formats and effectiveness of FASB's and IASB's (financial position) financial statements, statement of cash flows, and income statement. What insights or what conclusions can you draw based upon your comparison? Provide examples of the current and proposed formats to support your conclusions.
Please note that the 2- to 4-page paper requirements exclude the examples of the proposed formats.
Be sure to support your work with specific citations from this week's Learning Resources and any additional resources.© BrainMass Inc. brainmass.com December 15, 2020, 11:35 pm ad1c9bdddf
The response addresses the query posted in 1000 words with APA references
//In the following paragraphs, there will be a discussion on the proposed changes in the financial statement reporting format that can be suitable for the global economy. There will also be a discussion on the similarities between the proposed and current reporting format. //
The governments around the globe have adopted their localized regulations and laws for reporting the financial statements, which create different formats and different information disclosures. It is difficult to understand the financial statements of one country by the resident of another country, which creates a hurdle for the investors at the global economy level. The current era requires the standard format for the financial reporting in the form of financial statements and other required disclosures. Investors and suppliers are looking for foreign investment opportunities and high rate of returns that needs the standard format of financial reporting so as to assess the financial performance and position. The standard format of financial reporting enhances the assessment of the financial statements as it provides easy understanding of the given information in the financial statements, which in turn helps the investors in making the rational investment decisions.
In respect to standardization of financial statements, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together to develop a standard format for reporting of the financial results and position with some proposed changes in the existing reporting formats. The main aspects of the proposed changes in the financial reporting formats include cohesiveness and disaggregation. Cohesiveness indicates the establishment of ...
The expert examines localized regulations and laws pertaining to the reporting of financial statements. The response addresses the query posted in 1000 words with APA references.