Question

Question 1

Identify at four (4) bodies/institutions that regulate the production, content and presentation of company financial statements and discuss their respective roles and responsibilities. (25 Marks)

Question 2

Evaluate the development of new accounting and accounting standards by the International and Local Accounting Standards Board.   (25 Marks)

Answer 1

An accounting standard is a common set of principles, standards, and procedures that define the basis of financial accounting policies and practices.

Accounting standards apply to the full breadth of a entity’s financial picture, including assets, liabilities, revenue, expenses and shareholders' equity.

The IASB establishes and interprets the international communities' accounting standards when preparing financial statements.

The International Accounting Standards Board (IASB) is the major entity proposing international standards of accounting. Originally formed in 1973 as the International Accounting Standards Committee (IASC) and renamed the International Accounting Standards Board in 2001, the IASB is an independent agency that develops accounting standards known as international financial reporting standards (IFRS).

Accounting standards can be complex; and this makes modification of standards difficult. In addition, differing practices among various nations add to the complications of a unified accounting format. For example, in the United States and Great Britain, individual investors provide a substantial source of capital to companies, so accounting rules are designed to help individual investors.