Essay On IFRS

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QUESTION 2 (SECTION B)
Rationale having two set of IFRS
IFRS are developed and published to promote the use of those IFRS in universal purpose financial statements and other financial reporting. General purpose financial statements are directed towards the common data needs of wide range of users. As it turns out, have different national accounting system is expensive for companies and investors. Companies need to keep a copy of the accounting system, and investors will be cautious about buying shares in the Corporation accounts they do not understand. This problem arises because accounting guidelines have developed over the centuries in which there are different needs from one another, the economy and the means of regulating.
Apart from that, the rationale about this two set of IFRS is IFRS will make all the countries use the correct accounting, transparent, true and fair and easy to understand the account all the countries because use a same guidelines and rules. Full IFRS is for a big company to monitor their business with the guidelines but for small company needs to use IFRS for SMEs because SMEs easy to understand and the report must submit three year one time. Differences in accounting systems do not efficiently transfer information that will adversely impact on the allocation of resources, the efficiency of capital markets, and tax adjustments. Standards of international financial reporting issued by the International Accounting Standards Board, committed to developing a standard set of high quality, global need transparent and comparable information in general purpose financial statements.
Although the principles of accounting and as an accrual basis and going concern assumption is widely accepted, the use of these princ...

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... to the topic or accounting policy options in full IFRS that were dropped from the IFRS for SMEs, or it relates to the principles of recognition and measurement in full IFRS that have stayed changed by simplifications in the IFRS for SMEs and they are not considered to be suitable based on the needs of consumers or cost-benefit concerns. For example, some disclosure in full IFRS are more relevant to investment decisions in the public capital markets from transactions and other events and conditions faced by the typical SMEs.
Assets are resources controlled by an entity consequence of past events and from which future economic benefits will flow to the entity. Future economic are benefits that can rise from the continued use of the asset. The asset that requirement in IFRS for SMEs are same with full IFRS. The factor is the right of ownership and physical substances.

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