Developments In Accounting Thought Essay

Questions:

1.You are required to find a Newspaper article or web page report of an item of Accounting News.
2.Introduce the major issues in the new standard.
3.Explain if there is generally a consensus or if there is disagreement between the commenting parties. Examine in detail why some parties may have a dissenting point of view.
4.Explain if there is generally a consensus or if there is disagreement between the commenting parties. Examine in detail why some parties may have a dissenting point of view.

Answers:

1.The news article “The new revenue recognition accounting standards” shows the appropriate framework for with the development of the technologies. The construction and the development of the structure are being made by showing the enhancement of the work which is showing the impact on the changes of the environment. The uses of the new accounting standards that are identified in this case shows the appropriate usage of the information technology, human resources and the sales and the marketing is being shown in this case. The new recognition and the transformation of the guidance is being shown by showing the guidance which is being used for showing the revenue recognition transformation strategy and also the critical judgement is being made by showing the impact for showing the extension which is being depicted to be showing beyond finance (Mariotte, 2017). As per the article is being undertaken for the study, the formation of the new accounting standards are depicted in the form of the showing the proper transfer of the goods. The transfer of the goods are depicted to be based on the proper principles which are showing the appropriate impact on the study and also the conduct is being made by showing the reflection of the amount which is being made by showing the appropriate conduct of the financial accounting standards. Therefore the study is depicted to be showing the enhancement of the fundamental principles that are related to the enhancement of the study and also the complexities can be easily removed by showing the appropriate conduct of the services which are reflected in the form of the payments made (Alexander, Nobes, & Ullathorne, 2016).


In general considerations as per this article the revenues can be easily categorized in the form of the sales with showing the purchasing of the goods and the services. The effect which is being determined in this study clearly shows the appropriate structure which is being used in this case that reflects the appropriate structure which is showing the conduct which is being made on the study. Therefore the changes and the shifting of the US judgements are appropriately made by showing the reflection on the work which is being made by showing the enhancement of the work and also the appropriate example is being provided in this case for the purpose of justification. As the major judgement standard is being considered, the current guidelines can be easily expressed in the form of the current guidelines which are depicted to be improved in the form of the new guidance’s (Appannaiah, Reddy, & Putty, 2010). The current new standards are depicted by showing the enhancement of the standard which is being made by showing the appropriate revenue transaction and also the attempt is being made by showing the guidance of the parameters that are used as a rule. Therefore the fair value can be easily constructed by showing the appropriate enhancement of the study which is being made by showing the appropriate delivering of the elements which are being used for showing the logics of the core and also the representation of the new standards can be easily depicted by showing the appropriate change in the business of the America. (Weil, 2017). As per the FASB and the IASB announcements are considered, the following of the new developed guidance shows the proper implementation which is made for the development of the structure of the work. The principles are being appropriately explained which shows the appropriate explanation of the study and thereby the new revenues standards are implemented for showing the annual reports representation. Therefore the entitlements of the non publics are made for showing the appropriate structure of the work for the adoption of the standards (Beechy, & Conrod, 2008). The new mind set is being developed for the creation of the new standards that are made for showing the appropriate activities which are used in the form of the study and also the appropriate management of the structure is being made in the form of the rules based and the judgement based systems. It also represents the enhancement of the structure which is being made by showing the enhancement of the structure and also the business environment is being depicted to be showing the enhancement of the business environment in US. Therefore the business leaders should not underestimate by showing the mindset challenges and also the technology realm is being made by showing the complications and the multi-dimensions. It is also illustrated in the form of the structure of the study which is being made by showing the identification of the study and also the customer options can be showing the determination of the things which are used for showin the licence and also the distinct performance is being shown by showing the performance is being depicted by showing the performance obligations. The considerations are made by showing the appropriate enhancement of the study which is being made by showing the structure is being made by showing the enhancement of the study and also the initial liscense and also the updates can be easily made by showing the supporting contract. Therefore the refining of the thought is being made by showing the new judgement process which is being shown to be the essential part which is showing the establishment of the internal guidlines and also the support is being made by showing the ensuring of the process which are consistent in nature (Beechy, & Conrod, 2008). Therefore, the overall article shows the opportunity which is being created for the purpose of showing the appropriate innovation in the companies which shows the path for the improvement of the approaches and also the influence in the companies can be made by showing the detailed rules which is being made by using the influence to show the market strategies. The new guidelines are depicted to be influencing the products which are used for showing the appropriate current results in the form of the appropriate study. It also includes the cost of the revenue matters which influences the aspects obtained during the re-arrangement of the revenue matters (Spiceland, 2010).


2.International Accounting Standard Board (IASB) intend to make amendment in their accounting standard in order to enhance its acceptability across the globe and to provide an appropriate and unified solution to the global companies. In order to make the amendment the IASB seek public comment from the various organizations about the proposed amendment. It helps the accounting board to recognize the public perceptions about the proposed amendment (Britton, & Waterston, 2013). For this purpose, the IASB released exposure documents that provide the ideas about the proposed changed to the public. Furthermore, the IASB has published exposure draft that provides a sample of the proposed amendment to the public. Moreover, the IASB seek the public comment on these proposed amendments, the ISAB declares the pros and cons of the proposed accounting standards to the public and provide the reasons for the changes. For example, the proposed changes reflect the issues and claim to improve the accounting process (Powers, & Needles, 2012). The proposed changes are as follows:

Standard

Subject to amendment

IFRS 5Non-curent asset held for sale and discontinued operation

Alteration in the process of disposal

IFRS Financial instrument: disclosure

Servicing contracts

Applicability of the changes to IFRS 7 to condensed interim financial statement

IAS 19 employees benefits

Discount rate: Local market issue

IAS 34 Interim Financial Reporting

Disclosure of information elsewhere in the interim report

The main issue detected with the changes is the issue with the inventory standard. There are several Australian companies are upset with the amendment and changing standard by the IASB. Because in new inventory standard the companies are facing severe difficulties as they have to add the inventory amount in the balance sheet in the standard cost. The reason for this the company use to bought the stock in much lesser price and during the years the cost of the stock may fall as they are old and the standard cost in the market is high so the value of the stock or inventory may show high that impact adversely on the financial statement of the company (Churyk, Weirich, & Pearson, 2012)

3.There are several companies in Australia appeal that the new standard is not acceptable as it displays erroneous information to the public. It improves the asset of the company and thus in comparison to the asset the liability of the company in the balance sheet shows comparatively low. That improve the financial performance of the company and the investors also attracted to the company and make important investment decisions in favour of the company but in long run face severe loss. As the information is misguided the investors (Parrino, 2015).


4.Public interest, private interest, and capture theories

The public interest theory states that the economic markets are fragile and it has the tendency to function inefficiently. The market may not give importance to the society. Thus, government rules and regulations are required for directing and monitoring the economic markets. For example, the government regulates the financial statements to make the work in favour of the social interest. The accounting standards also change their rules and policies for the welfare of the public in the society.

The private interest theory states that the individuals or groups carry out their works to fulfill their self-interest. The theory proposes that the private interest dominates and rules the regulatory processes than the public interest (Helb?k, Lindset, & McLellan, 2010). The regulatory results reflect the interest of the powerful groups. The theory shows that people of groups can work for their own interest.

The capture theory states that the regulations and rules are manipulated in order to fit the requirements. The theory also states that the regulations over a given period of time serve the interest of the concerned industries. The theory clearly explains the intentions of the designing regulations. Thus, the regulations affect the individuals are involved directly in the formulation of the regulations. There is an appropriate representation of the interest groups as well as the politicians (Holton, 2012).


The exposure draft of FASB shows the issuance of the proposed update as the part of disclosure framework project. The primary focus and objective of the disclosures in the notes to the financial statements are to provide clear information which is required by the generally accepted accounting principles which is significant to the users of the financial statements of the company. The new amendments made by the FASB in their inventory disclosures is that the inventory would be disaggregated by the component, disaggregated by the measurement basis, changes to inventory balance, qualification of cost types to capitalize into inventory, the effect of the LIFO. The comment letter of Deloitte supports the ongoing efforts of FASB in order to improve the effectiveness of the disclosures in notes to financial statements (Comment letters, 2017). The company agrees with the aspects of the proposed ASU by the board. The board puts emphasize on considering the materiality for the discloses. The company has stated that the newly proposed requirements for disclosures will provide significant information to the users of the financial statements. The disclosure effectiveness is supported by the company and believes that the board should undertake the costs examination that should be capitalized as the inventory part and changing cost to the cost of goods sold. The project would be bifacial in the current accounting practices (Kieso, Weygandt, Warfield, & Kieso, 2010).

The comment letters clearly state that the proposed amended would be in the favor of the public. The investors and stakeholders will get more information from the disclosures in the notes to the financial statements. The financial statements provide significant information to the users of the financial statements and help them to make investment decisions (Northington, 2011).

References

Alexander, D., Nobes, C., & Ullathorne, A. (2016). Financial accounting. Harlow, England: Pearson.

Appannaiah, H., Reddy, P., & Putty, R. (2010). Financial accounting. Mumbai [India]: Himalaya Pub. House.

Beechy, T., & Conrod, J. (2008). Intermediate accounting. Toronto: McGraw-Hill Ryerson.

Britton, A., & Waterston, C. (2013). Financial accounting. Harlow: Financial Times Prentice Hall.

Churyk, N., Weirich, T., & Pearson, T. (2012). Mastering the FASB codification and eIFRS. Hoboken, N.J.: J. Wiley & Sons.

Comment letters. (2017). Cite a Website - Cite This For Me. Fasb.org. Retrieved 6 May 2017, from

Helb?k, M., Lindset, S., & McLellan, B. (2010). Corporate finance. Maidenhead, Berkshire: Open University Press/McGraw-Hill Education.

Holton, R. (2012). Global finance. Abingdon, Oxon: Routledge.

Kieso, D., Weygandt, J., Warfield, T., & Kieso, D. (2010). Intermediate accounting. Hoboken, N.J.: Wiley.

Mariotte, S. (2017). Millions Of Americans Are Lost In The Black Hole Of The IRS. The Huffington Post. Retrieved 6 May 2017, from

Northington, S. (2011). Finance. New York, NY: Ferguson's.

Parrino, R. (2015). Corporate Finance. Singapore: John Wiley & Sons.

Powers, M., & Needles, B. (2012). Financial accounting. [Mason]: South-Western, Cengage Learning.

Spiceland, J. (2010). Intermediate accounting. Toronto, ON: McGraw-Hill Ryerson.

Weil, R. (2017). Financial accounting. [Place of publication not identified]: Cengage Learning.

Welch, I. (2014). Corporate finance. Los Angeles: Ivo Welch.

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