Global Regulation for Advanced Accounting Theory- myassignmenthelp

Question: Discuss about theGlobal Regulation for Advanced Accounting Theory. Answer: To Members of Board Treasury and the Australian Government Respective Members of Board The provided paper is based on the role of international regulation by considering case scenario of 2020 which is focused on the merger of the US FASB and the London based IASB for the creation of Global Accounting Standards Board (GASB). Integrated reporting Integrating reporting is a broadly based framework refers to the concept wherein companies are required to have long-term approach for disclosure of value creation of business impact. Further, integrating reporting in the company is a communication procedure that takes place in providing concise communication regarding the creation of value over time through strategy, governance and performance. An integrated report means clear communication regarding the strategy of the organization, its governance, scenarios and performance resulting in value creation for short, mid and long period of time. It is a broad structure for organizations and decisions on investment based on long-term including its purpose (de Villiers, Rinaldi and Unerman, 2014). Integrated reporting is a representation of corporate performance on the basis of financial or any other valuable information. This reporting structure offers wide context meant for performance data and states the effectiveness of reliable value information into business operation which might assist in making better business decisions for longterm. Arguments for and against the original move to international standards in 2005 The potential advantages of international accounting standards are considered as compelling. The implementation of one set of quality standards by corporate across the world will assist in improving the transparency and contrast of financial information while reducing the costs of preparing financial statements. While the standards are applied consistently and severely, participants of the capital market can have high-quality information which helps in making better decisions for long-term (Ball, 2006). Further, these arguments have been employed to promote the implementation of IFRS meant for financial reporting to consolidate the listed enterprises in EU. Other jurisdictions have placed same reasons for IFRS implementation, stating the requirement for high-quality standards thereby improving the comparability and value of financial reporting while promoting the national capital market development and the market integration on a global basis. Industry professionals against IFRS have made an argument that the benefits of a mere set of global standards will not balance implementation costs and evolution of the standards. It has been realized that those arguments in against of the evolution or implementation of IFRS determined a higher degree of drawbacks (Damant, 2006). These are inclusive of losing control of a nation over the set of standards and high transition costs to adopt IFRS. It is because; inclusive of training and development of the employee, internet technologies, particularly at the time of strict budgets loss an economic crises. Viability to allow foreigners to make regulation for locals The decision of allowing foreigners to make regulations for locals can be said viable to the far extent as increasing of the globalization of capital market needs a unified global accounting, reporting and disclosure of a set of standards. The qualification of personal matters rather than the country to which professionals belongs as the same plays more significant role in same. As foreigners can understand the rules and provision which have been applied by them in more appropriate manner, thus they will be able to take decision in more appropriate manner that in case one provision is applied to the whole word globally than whether provisions which were previously applied as a country should be continued or not (Nurunnabi, 2015). As the main objective of International Federation for an accountant is to serve the public interest through strengthen the profession and contributing to efficient international economies. Viability of regulation Every business has to face complexities regarding the issues related to accounting regulation as the same has been based on wider business and scientific community. Li, (2015) asserted that the more the no. of regulation the increased level of complexities of financial reporting regulation and excessive administrative burden exist in accordance with the size of the company regarding the issues which are being discussed between a representative of business relating to useful information required for business. Reporting regulations assist in meeting the demand relating to amendments in accounting standard. It leads to provide the transparency which is required by the users at most priority in order to assess the manner in which business operate and perform (Nurunnabi, 2015). Even the financial and accounting executives do face the pressure relating to adopting and managing the cost relating to change in reporting; thus in the case, detail regulations are available than same can be easi ly adopted. As presently some form of sustainability reporting is being mandated in many EU countries. The same assist the company in influencing their investors as well as a bank while sustainability of commercial loan assessment and other investment decision. But the fact cannot be denied that increased regulation usually leads to sound complexities and inconsistencies. The reason behind same that it is not easy to understand and implement detail procedures relating to accounting and reporting of financial statements (Hale and Held, 2018). Thus, one does not seem able to take a decision that whether they should be concerned with the business operation or deal with issues relating to reporting of business activities. Every business organization does not have appropriate resources to hire professional in order to understand and apply these regulations and due to some reason it is possible that they do not implement the same in an appropriate manner which will eventually lead the company to penalties or other losses. Various risks involved in each alternative Each alternative has its own risk and benefit. The extent of risk depends on benefits which have been attained through a specified alternative. In the present case as the increase regulatory compliance, global accounting standard and detail disclosures along with streamlined communication of financial results can be assessed in financial reporting. The same leads to transparency, compliance with corporate governance in more appropriate manner. But along with same the fact cannot be denied that a more-stringent regulatory requirement leads to enhance the cost of being a public company. In this situation, more preference would be provided to government companies with a higher degree of transparency in books of accounts can be assessed with the same. Grabinskia, Kedziora and Krasodomska( 2014), assessed that in these situations private companies would have to provide additional disclosures so that public and investors are able to compare in an appropriate manner and take a decision in t he same accordance. It has also been assessed that increased regulations lead to improving transparency but on the other hand, it increases the complexity to the same extent. As a significant no. of challenges are faced by financial executives in order to make the transition in accordance with IFRS. The fact cannot be denied that requirement of global accounting standard is not only for a giant company but has been needing of most of the companies and countries of the world; thus they required to be applied in order to simplify financial communication. Even though the application of same would lead to complexities as an even small organization will have to follow high detailed regulations, but eventually, the financial statements will be more effective and cost-efficient in accordance with same. But managing productivity in business operations along with new emerging standards is not going to an easy task (Giner and et al.,2016 ). As it is not appropriate to expect healthy and stron g seedlings from unwell managed seedbeds, i.e. absence of appropriate expertise. The implication of IFRS would lead to achieving an enhanced level of consistency between internal and external reporting as through application of same better access to international market would be possible, and the same will eventually lead to increase in international competitors. In case reduced stringent and less no. of laws and regulations are applicable; in that case, ease will be available to the companies in order to accept the same. They will not have to indulge additional resources as well as time to understand as well as implement detail regulation. However, the specified ease might enhance the level of risk as in case regulations are not available relating to a specified matter or only to a limited extent that the appropriate manner of accounting the same cannot be judged. Frias?Aceituno, Rodrguez and Garcia?Snchez, ( 2014) asserted that in this case investor would have to bear an enhanced level of risk as they will not able to compare thing in the manner in which it would have been possible in case when the regulation which is being applied were in detail form. In case the regulations are not stringent than the same would not be applied by all the companies and the objective behind same of making a financial statement of all the companies comparable would not be attained. The reason behind same would be that companies will have to suffer wider financial issues as well as other issues relating to the structuring of ESPOS schemes, modification of IT system etc. Recommendations It can be recommended that rather than making detailed and complex regulations, an attempt should be made to make it simple with adequate no. of regulations so that every business can apply the same with ease. Moreover, if similar standards will be applied in each part of the world that same would lead to greater communication with international regulators, the investment community and other stakeholders. The objectives comprising high quality, transparent and comparable financial statements can be attained with the adaption of common standards at the global level. Further, an appropriate explanation should also be provided regarding the manner in which these standards should be adopted and complied so that it could be implemented in an appropriate manner. The application of same would provide more relevant, reliable and timely information across all the jurisdiction, implementation of IFRS should be mandated so that financial statements could be assessed in detail and appropriate ma nner. As convergence with IFRS would provide strength in commercial relationship between the companies as well as international financial societies as the operations would be measured by same standards. Conclusion The above study depicts that adoption of international financial reporting standards would lead to the attainment of benefits which comprises benefits of raising capital from abroad, assistance to investors in making a more appropriate decision relating to investment. Further, the study reveals the fact that with the change in accounting and reporting standards, the requirements and need of financial executives have also been changed on financial as well as non-financial metrics. Presently more no. of companies are providing result relating to metrics on the basis of which longer-term sustainability of their business can be assessed. The change in standards or adoption of IFRS has influenced the companies to provide additional disclosure on a mandatory basis on the basis of which investors are able to make a more appropriate investment decision. References Ball, R., 2006. International Financial Reporting Standards (IFRS): pros and cons for investors.Accounting and business research,36(sup1), pp.5-27. Damant, D., 2006. Discussion of International Financial Reporting Standards (IFRS): pros and cons for investors.Accounting and Business Research,36(sup1), pp.29-30. De Villiers, C., Rinaldi, L. and Unerman, J., 2014. Integrated Reporting: Insights, gaps and an agenda for future research.Accounting, Auditing Accountability Journal,27(7), pp.1042-1067. Frias?Aceituno, J.V., Rodrguez?Ariza, L. and Garcia?Snchez, I.M., 2014. Explanatory factors of integrated sustainability and financial reporting.Business strategy and the environment,23(1), pp.56-72. Giner, B., Hellman, N., Jorissen, A., Quagli, A. and Taleb, A., 2016. On the Review of Structure and Effectiveness of the IFRS Foundation: the EAAs Financial Reporting Standards Committees View.Accounting in Europe,13(2), pp.285-294. Grabinskia, K., Kedziora, M. and Krasodomska, J., 2014. The Polish accounting system and IFRS implementation process in the view of empirical research.Accounting and Management Information Systems,13(2), p.281. Hale, T. and Held, D. eds., 2018.The handbook of transnational governance: Institutions and innovations. John Wiley Sons. Li, X., 2015. Accounting conservatism and the cost of capital: An international analysis.Journal of Business Finance Accounting,42(5-6), pp.555-582. Nurunnabi, M., 2015. 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