Financial Reporting and Analysis Essay Example | Topics and Well Written Essays - 1000 words - 2

Financial Reporting and Analysis - Essay Examplen laid downhearted by the IASB and the FASB together with the intension of providing a sound future for the accounting standards which have moved to adequate more principals based, internally consistent and internationally converged. This paper has also dealt with the pros and cons of this fashion model and the agreements are based approximately the international conceptual framework.The IASB is a board which aims at developing and helping to improve the general economic consumption financial statements, to make sure that it meets to the public interest (Mill, et.al., 2003). The IASB is one of the single high qualities, simple to discover and also one of the only global accounting standards which needs complete information of the general declare oneself financial statements. The global Accounting Standard Board (IASB) has made various proposals to improve the conceptual framework for financial reporting. The International Accoun ting Standard Board has proposed to improvise the objectives of the General Purpose Financial Reports (Kitabjian, 2008). The International Accounting Standard Board has foc characterd on improving the General Purpose Financial Reports for capableness investors and lenders. They suggest that the report aims at these groups of individuals to help them make informed decisions regarding their capital investments (IASB, 2008). The IASB also works in cooperation with the national accounting standard setters which provides for a meeting point for all the accounting standards from across the world.The use of fair value as opposed to the historical cost accounting has always been quite a controversial choice. In this case the use of fair value would prove to be more adept when compared to the historical cost accounting as this would have reduced the impact of the credit crunch. In the clipping of a credit problem and a troubled economy, the use of fair value is one which is almost benefi cial. The use of fair value is beneficial majorly because the use of the fair value provides