Financial Reporting Standards by Edu Pristine

Author of lecture Financial Reporting Standards

Edu Pristine

Customer reviews

Excerpts from the accompanying material

... and the importance of financial reporting standards in security analysis ...

... "If reporting standards did not exist then financial statements can take any form because of possible assumptions & estimates". ...

... a wide range of users including security analysts ...

... The most important advantage of financial reportingstandards is: A. Management is limitation to manipulate the books of accounts ...

... has authority over the assumptions used and the complexity involved in transaction A is incorrect. Flexibility of standards leads to comparison between companies made difficult ...

... of Securities Commissions describe the roles and desirable attributes of financial reporting standard-setting bodies and regulatory authorities in establishing and ...

... auditors that establish financial reporting standards. Regulatory authorities: government agencies that have the legal authority to enforce compliance with ...

... Regulated by SEBI "Standard-setting bodies“: 1. Financial Accounting Standard Board (FASB). FASB is governing body in U.S.. Sets forth generally accepted accounting principles (GAAP) 2. International Accounting Standard Board (IASB): Establishes International Financial Reporting Standards (lFRS) outside U.S. ...

... and high quality in financial statements. Promote use of such global accounting standards. Achieve convergence between various national accounting standards and global accounting standards. Take care of needs of emerging markets and small firms while ...

... have legally enforceable power Imp. Regulatory authorities established by national governments. Securities and Exchange Commission (SEC) in the United States; Financial Services Authority ( FSA) in the United Kingdom; Most national authorities belong to International Organization of Securities Commissions (IOSCO) which has led three objectives: ...

... Disclosure about business and its management  audited financial statements, legal matters etc. 40-F: corresponding form for Canadian companies listed on US exchanges 20-F: corresponding form for foreign issuers listed on US ...

... "Form 10-Q: Quarterly Report: Financial statements may not be audited" ...

... "Accountants, financial statements, or other related matters". Press Releases "Form DEF-14A: Proxy statement for its shareholders (prior to the annual meeting or other shareholder ...

... insiders "Form 144: When a company issues securities to certain Qualified Institutional Buyers (QIB) without registering the securities with the SEC "Form 3, 4, 5 - Details on beneficial ownership ...

... qualitative characteristics of financial statements, required ...

... wide variety of users for taking economic decisions "Ideas on which IASB bases its standards are expressed in the IFRS. Framework for Preparation & Presentation of Financial Statements. "According to IFRS, objective of financial statements are: To provide information ...

... Here, relevance/timeliness is given preference over reliability. In the case of annual reports, they are always audited. Here, reliability is given preference over relevance/timeliness. Faithful representation of all transactions and events in FSs. Not biased. Complete (based on materiality limits and costs limits). Substance matters over form (reflects economic reality) ...

... " Fair value " How to measure benefits / costs: "Historical cost "  ...

... A. Durability B. Comparability C. Timeliness " Which of the following is not a characteristic used ...