to make presentation information complete and free from bias and protects

To make presentation information complete and free

This preview shows page 4 - 7 out of 9 pages.

to make presentation information complete and free from bias and protects financial reports from major errors. The board also recognizes that enhancing qualitative characteristics will help in Comparable: It helps to compare information within a report with another one as a way of establishing efficiency and confidence. Verifiable: Other parties can easily authenticate the represented report without challenges (Easton, 2002). Increasing the validity of the report. Timely: the framework is careful about its time management as it is one of its core factors and is highly maintained. Becoming more significant to the
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stakeholders. And lastly, Understandable: the framework demonstration set-up is user-friendly making the information easily understandable. 5.0.Merging of FASB and IASB The Financial Accounting Standard Board (FASB) and the International Accounting Standards Board (IASB) have agreed that there must be a single set of high-quality international accounting standards for the proper functioning of international capital markets. This would help potential users of financial statements by increasing comparability, reducing cost and making international capital business share more effective. Next, the IASB and the FASB decided in September 2002 to eliminate the gaps between international standards and the U.S. GAAP. This agreement was implemented in a Memorandum of Understanding (MoU) between the boards known as the Norwalk Agreement (Horngren et al., 2002) . The Norwalk Agreement sets the common goal of establishing consistent, high-quality accounting standards that can be used for domestic and cross-border purposes. It also set wide tactics to jointly develop standards, eliminate narrow differences whenever possible, and stay together once converged. Secondly, the FASB originally issued in 2006 and updated in 2008and 2010. The Boards have completed several major converged accounting standards, including those on business combinations, non- controlling interests, and fair value measurement (Ezzamel et al., 2003) . A new Accounting Standards Advisory Forum (ASAF) was recently created by the IFRS Foundation in 2013 to broaden the scope of the collaborative efforts of the IASB. The FASB participated in the ASAF and worked with the IASB to improve common standards through joint projects. The four joint projects are the following: Revenue Recognition, Leases, Financial Instruments, and Insurance provisions frameworks. 6.0.The Assessment Theories The supposed framework of importance recognizable researches accepting a new mechanism composed of a combination of assessment theory through accounting and economic recording effects that allows professionals to understand just how accounting variables relate with other information are related
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to market power. Additionally, frameworks essential analysis are also helpful in structuring valuation theory.
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  • Spring '17
  • Dr. Hassan
  • International Financial Reporting Standards, international Accounting standards Board

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