The Conceptual Framework for Financial Reporting

INTRODUCTION (about 100 words)

Introduce the report – provide a background.

State the aim/purpose of the report

Background (about 200 words)

Provide a background on the need for the conceptual framework and its purpose. State there was an old framework on 1989 and then I 2010 was introduces a new frame work. Briefly outline the differences between them. Havard Citation

Objective of Financial reporting (about 250 words). Havard Citation

Underlying Assumptions (about 150 words).

Discuss the differences/similarities between convergence and harmonisation. Havard Citation

The qualitative characteristics (about 550 words)

Fundamental characteristics (Relevance, Faithful representation) and enhancing characteristics (Comparability, verifiability, Timeliness, Understandability). Talk about them and cite in Harvard style.

Elements of the financial statements (about 400 words)

Assets, Liabilities, Equity, Income, Expense. Talk about them and cite.

 

Concepts of Capital and capital maintenance (about 250 words)

Financial capital, physical capital. Havard Citation

The use of Fair Values in the preparation and presentation of financial statements (500 words)

Discuss the use of fair value (include the appropriate IFRS)

Discuss the use of historical cost

Compare both measurements, highlighting their advantages and disadvantages. Havard Citation

 

Conclusion (about 100 words)

References (Harvard style)

 

All citation and references need to be done in Harvard style. Please use reliable sources as books. Kaplan (2016) F7 Financial Reporting and ACCA F7 Financial Reporting are good sources. Also, please make sure that each paragraph combines the references, different references in the different section.

 

 

 

PAA305

Advanced Financial Reporting

Spring 2018

 

 

Coursework Brief

 

 

 

Submit this coursework through the Student Portal with a Turn-it-in Report

 

 

Word Limit: 2,500 words (Plus or minus 10%)

 

 

 

 

Make sure all sentences or passages quoted from other people’s work in this assignment (with or without trivial changes) are in quotation marks, and are specifically acknowledged by reference to the author, work and page.

 

 

Assignment Questions

In October 2002, the FASB (Financial Accounting Standards Board) and the IASB (International Accounting Standards Board) announced the issuance of a memorandum of understanding (“Norwalk Agreement”), marking a significant step towards formalising their commitment to the convergence of U.S. and international accounting standards. Since then, both boards have been involved actively in a joint project to develop a common conceptual framework.

This would provide a sound foundation for developing future accounting standards which will be principles-based and internationally converged.

 

An example of such standards is IFRS 13 – fair value measurement, which was jointly issued by the IASB and FASB in 2011 (effective from 2013) as part of the convergence project, and also as a response to the global financial crisis.

 

Required:

• Critically discuss the scope of the new conceptual framework for financial reporting. Compare the new framework with the 1989 IASB framework for the preparation and presentation of financial statements.
• Critically discuss the arguments for and against the use of fair values in the preparation and presentation of financial statements. Your discussion must include comparisons to the historical cost convention.

 

Your coursework must be in a report format, with an introduction, the main body addressing the above issues, and a conclusion summarising your coursework. All external sources used must be adequately cited and referenced using the Harvard style of referencing.

 

Total marks for this assignment: 100

 

 

End of Assignment Brief