4 The transition to International Financial Reporting Standards (IFRSs) involves major change for companies as IFRSs
introduce significant changes in accounting practices that were often not required by national generally accepted accounting practice. It is important that the interpretation and application of IFRSs is consistent from country to country. IFRSs are partly based on rules, and partly on principles and management’s judgement. Judgement is more likely to be better used when it is based on experience of IFRSs within a sound financial reporting infrastructure. It is hoped that national differences in accounting will be eliminated and financial statements will be consistent and comparable worldwide. Required: (a) Discuss how the changes in accounting practices on transition to IFRSs and choice in the application of individual IFRSs could lead to inconsistency between the financial statements of companies. (17 marks) (b) Discuss how management’s judgement and the financial reporting infrastructure of a country can have a significant impact on financial statements prepared under IFRS. (6 marks) Appropriateness and quality of discussion. (2 marks) (25 marks) 本部分内容设定了隐藏,需要回复后才能看到 |
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