Accounting Issue: Concepts And Principles Essay

Question:

Find accounting issues currently feature in news and discuss the issue its nature potential significance in the general accounting debate and practice. Following the next steps:
• Relevant article (Not older than 1 year)
• Summarise what happened
• Why is it relevant to accounting issue
• Critical argument
• References

Answer:

In the recent times, the principles and the conventions of accounting has been changed or modified by the authorities along the whole world. The prime reason for this is to happen is basically because of the acceptance of the IFRS rules across the world. The various accounting bodies across the world have adopted the principles and conventions of IFRS. All the Asian countries will have to adopt the same in order to follow the universal method of accounting. This has led to the change in the accounting standards of many countries, because of which the process of accounting for them has been changed. (Bloomberg, 2015)

There have been various issues across the world because of this news. There are some countries, which are not in favour to adopt the principles of IFRS. One of the countries to oppose the scenario is the African countries. The countries like Zimbabwe, South Africa, etc. are in the process of making sure that they don’t have to adopt the principles and conventions of IFRS. The government of these countries are in constant contact with that of the highest accounting body in the world. The major aspect to consider this as an accounting issue is basically because of the fact that certain countries are not favouring the acceptance of principles of IFRS. On a general note, the discussions were to be made by the relevant authorities on the matter, relating to which the countries will start operating its activities as per the required rules and regulations. (Accounting web)

Asian countries like India, Pakistan, Malaysia, etc. have accepted these norms to apply the concepts and conventions of IFRS. This will eventually aid the companies operating its activities in a more efficient way. According to a major newspaper article, it has been concluded that the accountants in the coming years would be facing a lot of issue due to the fact that the conventions and the accounting standards of their respective countries would be abolished. Therefore, to avoid the same, the accounting bodies across the world are aiding the current accountants to educate themselves with the application of the principles and standards of IFRS. This common method of having the same accounting standards will have a standardized aspect for the betterment of the companies operating its activities across the world. Apart from this, the analysts of these companies will be benefitted with this the most as it will lead all the companies to make their respective financial reports as per the standards of IFRS. (Hood, 2015)

This will lead them to have a mutual understanding for the companies, making them easily compare the companies they wish to analyse to take future decisions. Therefore, most of the countries have adopted the standards of IFRS and the analysts will actually be able to make sure that the companies are being operated effectively or not. Therefore, it can be said that the accounting issue has been one of the major issues for the countries across the world as the decisions regarding the acceptance of IFRS for some countries has been non-decisive. (IFAC, 2015)

Bibliography

Accounting web. (n.d.). New Survey Reveals Top Concerns for Accountants in 2015. Retrieved December 22, 2015, from www.accountingweb.com:

Bloomberg. (2015). Accounting Issues. Retrieved December 22, 2015, from www.journalofaccountancy.com:

Hood, D. (2015). FASB to Issue Financial Instruments Standard in Early January. Retrieved December 22, 2015, from www.accountingtoday.com:

IFAC. (2015). Global Representation & Advocacy. Retrieved December 22, 2015, from www.ifac.org:

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