¶ … Financial Times has reported recently that the accounting methods that are maintained by the International Accounting Standards Board are being updated and it appears that many of the banks around the world could be ill prepared to implement the changes that will be required. The accounting standards that are being introduced are geared towards accounting for bad debts due to default loans and other uncollectable accounts and these measures have been dubbed IFRS 9 by those that are affiliated with these matters (Arnold, 2017). The coming changes illustrates many of the issues related to international accounting that are relevant to global economy today. One of the more fundamental issues at hand is that accounting for bad loans has implications for the entire range of banking operations. For example, banks are required to budget their assets and liabilities in various structures based on regulatory requirements. A bank most hold some ratio of their capital as reserves, and then can producing financing options for their customers based on these requirements. However, any change to the accounting for bad debts has the potential to change the core capital ratios that the financial sectors uses in their operations....
It is likely that many banks who are close to their threshold limits may be required to make structural changes in order to meet the new international accounting and reserve requirements that will come into effect after the IFRS 9 implementation.
Loyalty to the client was clearly placed above loyalty to the overall public good and the standards of the profession. "Enron paid Andersen $25 million for its audit…and $27 million for 'consulting' and other services" which meant that Anderson had a substantial financial stake in retaining Enron as a client (Kadlec 2002). The Enron case illustrates the difficulty of self-policing within the industry. Today, providing additional services besides the
Accounting in Australia: Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed to become an important element of the business fabric and economic development of a country and its organizations and institutions. This element has developed as a profession and business practice that is closely linked with the considerable economic development in Australia for
Accounting and the Public Interest: The accounting profession is not only an integral aspect of the society but it also plays a critical role in the nation and the corporate sector. As a result, this profession is expected to serve or contribute towards the public interest. The ability of the accounting profession to contribute towards the public interest is determined in the context of its standard setting process and legislation. In
Accounting Qualitative Characteristics of Financial Statements There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and comparability. The first section of this paper will be dedicated to explaining each of these concepts and how they relate to making financial statements more valuable for the audience. The first principal qualitative characteristic is understandability. This relates not only to the information but
Accounting Several terms and definitions are valuable to understand financial statements. In the United States, financial statements of public corporations are produced in accordance with the U.S. Generally Accepted Accounting Principles. These principles govern how the information for financial statements is compiled and presented. The purpose of these principles is so that all stakeholders can easily understand the statements and make comparisons across both time and across different companies, because the
Accounting Ethics Ethics of Accounting There have been breaches in the ethics of accounting in recent times. With that in mind, evaluate whether or not the current trend in the regulation of business establishments is favorable to ethical behavior. Supply supportive evidence to your answers (Jeter, 2003). The generally accepted principles of accounting and the standards of auditing in contemporary practice stipulate that the financial statements of any establishment should contain the following
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