Karlstad Business School

Size: px
Start display at page:

Download "Karlstad Business School"

Transcription

1 Karlstad Business School Paper On Conceptual framework: objective and Qualitative characteristics Presented to Berndt Andersson Dept. of Business Administration Prepared By: Mohammed Toufiq Rizwan T911 In Partial Fulfillment of the Requirements of FEAD 10 Karlstad University October 22,

2 Abstract In October 2004, the FASB and IASB added to their agendas a joint project to develop an improved, common conceptual framework that builds on their existing frameworks, that is, the IASB s Framework for the Preparation and Presentation of Financial Statements and the FASB s Statements of Financial Accounting Concepts. (FASB, 2009). Accounting conceptual framework can be defined as a coherent system of inter-related objectives and fundamentals that should lead to consistent standards that prescribe the nature, function and limits of financial accounting and financial statements (Lynch, 1998). The conceptual framework project of IASB consist of 8 phases and this paper is prepared based on the phase A, which is objectives and qualitative characteristics of financial reporting. The purpose of this paper is to provide basic information about the conceptual framework, and mostly about the objectives and qualitative characteristics of financial reporting. Besides this, I have tried to find out the importance of qualitative characteristics in user groups. For doing so, several pre studies are reviewed to find out the consideration qualitative characteristics by the user group in judging financial information to be useful or not. The outcome, however, somewhat similar even though the studies selected for this paper were based on different countries and user groups. 2

3 Table of Content Abstract 1.1 Introduction Conceptual Framework Phase A: Objectives and Qualitative Characteristics Purpose of the Study Methodology 9 2. literature Review Analysis and Findings Conclusion 14 Reference 3

4 1. 1 Introduction In October 2004, the FASB and IASB added to their agendas a joint project to develop an improved, common conceptual framework that builds on their existing frameworks, that is, the IASB s Framework for the Preparation and Presentation of Financial Statements and the FASB s Statements of Financial Accounting Concepts. (FASB, 2009). And the board has decided to conduct this conceptual framework project in 8 phases. These phases includes, Objectives and qualitative characteristics Definitions of elements, recognition and derecognition Measurement Reporting entity concept Boundaries of financial reporting, and presentation and disclosure Purpose and status of the framework Application of the framework to not-for-profit entities Remaining issues (if any) Out of this eight phases, first four of them are currently active. This paper has been prepared by focusing on the Phase A (Objectives and Qualitative Characteristics). And later on the objective of the conceptual framework project and importance of qualitative characteristics of accounting information has discussed in details. The reason of chosing phase A is because other following phases somewhat depends on this phase (Moehrle et. el., 2008) Conceptual Framework According to Lynch (1998), accounting conceptual framework can be defined as a coherent system of inter-related objectives and fundamentals that should lead to consistent standards that prescribe the nature, function and limits of financial accounting and financial statements. And so the conceptual framework project seeks to provide a comprehensive and coherent definition of the nature and function of accounting principle (Kripke, 1989). So it can be said that conceptual framework projects sets to be guideline 4

5 for executing accounting standards to make financial reporting more understanding and useful for users. The conceptual framework project's overall objective is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. (IASB, 2004). So it carries an prime objective to set a base to provide information that are useful for decision making, helps predicting cash flows, and delivers information about economic resources, and claims and changes in claims. The main reasons for developing an agreed conceptual framework are that it provides: a framework for setting accounting standards; a basis for resolving accounting disputes; fundamental principles, which then do not have to be repeated in accounting standards. (Becker, 2004) Phase A: Objectives and Qualitative Characteristics The aim of the Objectives and Qualitative Characteristics phase of Financial Reporting, is to consider: The objective of financial reporting The qualitative characteristics of financial reporting information The trade-offs among qualitative characteristics and how they relate to the concepts of materiality and cost-benefit relationships. (FASB, 2009) The above mentioned aims were considered for this phase is because, conceptual framework is said to be the guideline for setting standards in order to make financial reporting more useful. And to do so it had to be informative. Some specific qualitative characteristics make the financial statements and their elements more informative and useful. The graphic below gives a detail picture of qualitative characteristics 5

6 Understandability is the quality of information that enables users who have a reasonable knowledge of business and economic activities and financial reporting, and who study the information with reasonable diligence, to comprehend its meaning. (FASB, 2008) According to FASB (2008) the quality of understandability is defined in relation to users who satisfy those expectations. Understandability is enhanced when information is classified, characterized, and presented clearly and concisely. Comparability also enhances understandability (Later discussed). The primary qualities that make accounting information useful for decision making are relevance and reliability. Both of this qualities are important and can be defined based on their components. Relevance. To be relevant information must possess predictive value and feedback value. It means financial information should confirm investors expectation about future cash flow (feedback value) and this confirmation can also be useful in predicting the future cash flow of an entity. For example, if net income and its components confirm investor expectations about future cash-generating ability, then net income has feedback value for investors. This confirmation can also be useful in predicting future cash-generating 6

7 ability as expectations are revised (McGraw Hill, 2007). In determining what is relevant, considerations would include: current trends in the market place; transparency; and clarity (AICPA, 2000). Besides feedback and predictive value timeliness also is an important component of relevance. Users of the information requires information for making their future financial decision, and so they must require the information early enough to be useful. Timeliness refers to the information being disclosed early enough for the decision makers. The SECs in most of the countries requires its registrants to submit financial statement information not only on an annual basis, but also quarterly for each fiscal year so that the information can be available to the users when it is necessary. Reliability. Information is said to be reliable if it is verifiable, representationally faithful, and free of bias. Verifiability implies a consensus among different measurers. implies a consensus among different measurers. For example, the historical cost of a piece of land to be reported in the balance sheet of a company is usually highly verifiable (McGraw Hill, 2007). In this case the cost of the land can be followed even though the market value of the land can be much more difficult to verify. The term objectivity often is linked to verifiability. The historical cost of the land is objective but the land s market value is subjective, influenced by the measurer s past experience and prejudices. A measurement that is subjective is difficult to verify, which makes it more difficult for users to rely on. (McGraw Hill, 2007). According to FASB (2008), To be useful in financial reporting, information must be a faithful representation of the economic phenomena that it purports to represent. Faithful representation is attained when the depiction of an economic phenomenon is complete, neutral, and free from material error. Financial information that faithfully represents an economic phenomenon depicts the economic substance of the underlying transaction, event, or circumstance, which is not always the same as its legal form. Neutrality refers to the absence of bias. Biased that can lead to a predetermined result or to a particular behavior. Neutral information does not color the image it communicates to influence behavior in a particular direction. Financial reports are not neutral if, by the selection or presentation of financial information, they influence the making of a decision or judgment in order to achieve a predetermined result or outcome. However, to say that 7

8 financial reporting information should be neutral does not mean that it should be without purpose or that it should not influence behavior. On the contrary, relevant financial reporting information, by definition, is capable of influencing users decisions (FASB, 2008). In considering the importance of other qualitative characteristics, secondary qualities are also important. These qualities are, Comparability, and Consistency Comparability. FASB defines comparability as the quality of information that enables users to identify similarities in and differences between two sets of economic phenomena. Consistency, on the other hand, is the use of the same accounting policies and procedures, either from period-to period within an entity or in a single period across entities (FASB, 2008). It can be said that comparability is the goal, whereas consistency works as a mean to reach to that goal. The essence of decision making is choosing between alternatives. Thus, information about an entity is more useful if it can be compared with similar information about other entities and with similar information about the same entity for some other period or some other point in time. Comparability is not a quality of an individual item of information but, rather, a quality of the relationship between two or more items of information. Comparability should not be confused with uniformity (FASB, 2008). For information should be comparable within the financial report of same entity among different period and for doing so it has to be consistent in using the standards and formats. Even though these qualities seems to be important, they still considered as the secondary qualities. FASB (2008), in their Exposure Draft, stated comparability, verifiability, timeliness, and understandability as the enhancing qualitative characteristics. These enhancing qualitative characteristics are complementary to the fundamental qualitative characteristics. Enhancing qualitative characteristics distinguish more-useful information from less-useful information. 8

9 If we look at the enhancing qualitative characteristics, we will see that timeliness and verifiability has been separated as enhancing qualities. And reliability has been stated as only faithful representation of information. Consideration of these qualities by different users and there fulfillment of the objective of financial reporting is the main issue of this paper. 1.2 Purpose of the study The purpose of this study is to provide an overview on the phase A of the conceptual framework of financial reporting, that is the Objective of this project and the qualitative characteristics of financial reporting. As a part of this paper the secondary purpose is to find out the ways users consider the qualitative characteristics of financial information. 1.3 Methodology In order to fulfill the purpose of this paper, content analysis method has been used. I have gone through several relevant articles, books, and other electronic sources along with the information sources of various bodies such as IASB, FASB etc. My primary objective was to find out as much information (relevant and reliable) as I can from these secondary sources. A literature review has included in this paper as a part of the source of the data required to analyze the important of qualitative characteristics to various users, mainly to investors, students, and auditors. Studies related to representing developing countries (Iran), and developed countries (UK, Australia, France) has been chosen to find out the outcome. 9

10 2. Literature review Financial reporting information is directed to meeting the needs of a wide range of users, with present and potential investors and creditors being the primary users. Those users, especially investors, may have widely differing degrees of knowledge about the business and economic environment, business activities, securities markets, and related matters (FASB, 2006). According to the preliminary view of FASB in developing financial reporting standards, standard setters presume that those who use the resulting information will have a reasonable knowledge of business and economic activities and be able to read a financial report. Standard setters also presume that users of financial reporting information will review and analyze the information with reasonable diligence. Both the FASB s and the IASB s existing frameworks identify a particular group of primary users. Information that satisfies the needs of that particular group of users is likely to meet most of the needs of other users (FASB, 2008). The IASB Framework, paragraph 10, says: As investors are providers of risk capital to the entity, the provision of financial statements that meet their needs will also meet most of the needs of other users that financial statements can satisfy. The present and potential investors, lenders, and other creditors are the primary users of financial information. Corporate reporting is generally directed at providing information, which will assist the user in decision making. Timeliness of reports is recognized by the accounting profession, the users of accounting information, and the regulatory and professional agencies as an important characteristic of financial accounting information (Soltani, 2002). The issue of timeliness of financial reporting, an important qualitative characteristic of accounting information, has received much attention from regulatory and professional bodies in France in recent years (Soltani, 2002). The increasing presence of international investors, particularly from the US, on the Paris Stock Exchange adds to the importance of this issue. The timeliness of corporate and audit reports in the French context is analyzed by examining the trend in reporting delay of companies, the effect that qualified reports have on the timeliness of corporate reporting, and the relationship between reporting behavior and types of audit reports over a 10-year period. In his study Soltani 10

11 selected the data from more than 5000 annual reports of French publicly held companies for the years These bear witness to an improvement in timeliness of corporate and audit reports. This improvement is greater for reports from consolidated accounts of groups than those from annual accounts of companies (Soltani, 2002). Mirshekary and Saudagaran (2005), in their study draws its sample of financial statement users from bank loan officers and bank investment officers as being representative of a market economy, auditors from the Audit Organization to represent the governmentestablished and -managed audit organization, Tax Officers to respond to accounting measurements from a tax perspective, stock brokers and institutional investors who have emerged to service the country s movement into a market-based economy promoting the stock exchange, and academics responsible for accounting education geared towards meeting the country s need for professional accountants (Mirshekary and Saudagaran, 2005). As a part of their study Mirshekary and Saudagaran found, all user-groups believe a delay in published annual reports (timeliness), lack of trust in information (reliability), and lack of adequate information (relevance) are factors restricting the effective use of annual reports. Smith (1996), on the other hand, selected two groups for his study. To explore the potential of his research approach two groups of respondents were identified: A group of users. Forty MBA Finance students at a UK university business school skilled in financial statement analysis and already familiar with those properties deemed desirable in accounting communications. A group of auditors. Eighteen practicising accountants from the London office of a Big 6 accounting firm, comprising three partners, five managers, three assistant managers, four supervisors and three seniors (Smith, 1996). The empirical findings for both MBA Finance students and accounting practitioners demonstrate preferences which suggest that these users are prepared to sacrifice completeness, comparability, timeliness and understandability in disclosures in return for reliability, objectivity and relevance. This preference for reliability and relevance is consistent with the proposals of accounting standard setters worldwide, and may be attributable to a correspondence of the user groups concerned with the sophisticated target user designated by the accounting standard-setters. (Smith, 1996) 11

12 In Australia, qualitative characteristics are implicit in a number of financial reporting reforms recommended by the ASCPA/ICAA [10, para. 3026] as a consequence of this debate, which would improve relevance and comparability and highlight the need for timely information, future oriented information, consistency of accounting policies and a preference for substance over form (Smith, 1996). Sims and Cullis (1995), in their study, used mailed questionnaire that they have sent to various institutional user groups in order to find out their consideration about the primary qualitative characteristics set by AASB. The most responded groups were corporate accountants, government department accountants, and academics. A good representation of the population also came from the public practitioner. Their study revealed a significant issues within factors effect for both of these characteristics, and it found the significance of the two primary qualitative characteristics of useful financial information, relevance and reliability. 12

13 3. Analysis and Findings The literature review shows the outcome of various studies conducted on financial information users and financial reporting in order to find out the significance of the qualitative characteristics in fulfilling the objective of conceptual framework project. Most of the reviewed studies were conducted on users and practitioners. Some of them selected MBA students as a representative of educated user of information (Smith, 1996), some of them used practitioner, such as auditors, accountants (Smith, 1996; Sims and Cullis, 1995). Other users such as various types of bankers were also part of the study (Mirshekary and Saudagaran, 2005). Soltani (2002), on the other hand, used annual report of companies from various periods in order to find out their intention of adopting timeliness, to prove the importance of this qualitative characteristics on financial reporting. Outcome of the studies, however, brought out almost the similar outcome. The role of relevance and reliability on financial reporting seems to have similar importance to almost all user, which justifies their being the primary qualities of financial reporting (Sims and Cullis, 1995; Smith, 1996; Mirshekary and Saudagaran, 2005). Timeliness, a component of relevance, came out to be a significant characteristics users and professional give importance to (Mirshekary and Saudagaran, 2005; Soltani, 2002). Soltani s study showed that annual reports of the publicly traded companies have increased their timeliness as the investment in French stock exchange increased. The reason behind is the attitude of the practitioner towards adopting the timeliness in a significant basis. Mirshekary and Saudagaran (2005), found that all user-groups in their study believe a delay in published annual reports (lack of timeliness), plays a role in restricting the effective use of annual reports. 13

14 4. Conclusion Relevancy and reliability, as two primary qualitative characteristics, gets their importance from the user in considering financial information as useful. But if the users can not compare reliable and relevant information, then the useful information might fail as useful for decision making. Studies followed in this paper, mostly dealt with the primary qualities and didn t show any significant results of users preference on other qualitative characteristics or their elements. It concluding this paper, it can be said that users and practitioner of financial information consider the reliability and relevancy of information to be useful, but without comparability and consistency information can not be useful for making future financial decision. 14

15 Reference AICPA (2000). Appendix A; Qualitative Characteristics of Financial Reporting. CPA Letter. [Electronic]. Available: [ ]. Becker, Carolin (2004). The Conceptual Framework in the United Kingdom and the Introduction of the Statement of Principles. North East Wales Institute of Higher Education. [Electronic]. Available: [ ]. FASB (2006). Preliminary Views; Conceptual Framework for Financial Reporting: Objective of Financial Reporting and Qualitative Characteristics of Decision- Useful. Financial Accounting Series. Financial Accounting Standards Board. [Online] FASB (2008). Exposure Draft; Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-Useful. Financial Accounting Series. Financial Accounting Standards Board [Online] FASB (2009). Conceptual Framework Objective and Qualitative Characteristics [Electronic]. Available: [ ]. IASB (2004). The Conceptual Framework. [Electronic]. Available: nceptual+framework.htm [ ]. Kripke, Homer (1989). Reflections on the FASB's Conceptual Framework for Accounting and on Auditing. Journal of Accounting, Auditing & Finance. [Online]. 4 (1), Lynch, A.T. Foulks (1998). Drafting Financial Statements (Industry & Commerce). AT Foulks Lynch Ltd, Chapter 2. McGraw Hill Higher Education (2007). Qualitative Characteristics of Accounting Information. [Electronic]. Available: aracteristics_of_accounting_information.html [ ]. Mirshekary, Soheila and Saudagaran, Shahrokh M. (2005). Perceptions and characteristics of financial statement users in developing countries: Evidence from Iran. Journal of International Accounting, Auditing and Taxation. [Online]. 14,

16 Moehrle, Stephen R., A. Jennifer, and Moehrle, Reynolds (2008). The Proposed Conceptual Framework; Semantics or Sea Change in Financial Reporting?. CPA Journal. [Electronic]. Available: [ ] Pyke, Christopher J. (1999). The accounting conceptual framework. ACCA. [Electronic]. Available: [ ]. Sims, Michele A. and Cullis, Kerrie L. (1995). using a proportional odds model to analyse the factors that influence accounting standard setting lobbying in australia. Accounting & Finance. [Online]. 35 (2), Smith, Malcolm (1996). Qualitative characteristics in accounting disclosures. Managerial Auditing Journal. [Online] 11(3), Soltani, Bahram (2002). Timeliness of corporate and audit reports: Some empirical evidence in the French context. The International Journal of Accounting. [Online]. 37,

Conceptual Framework Excerpts

Conceptual Framework Excerpts Conceptual Framework Excerpts IASB Update April 05 Conceptual Framework (joint meeting) At this meeting, the IASB and FASB began their deliberations to develop a common conceptual framework. The two boards

More information

Financial Accounting Standards Advisory Council September 2005

Financial Accounting Standards Advisory Council September 2005 ATTACHMENT E JOINT CONCEPTUAL FRAMEWORK PROJECT Financial Accounting Standards Advisory Council September 2005 BACKGROUND The FASB and IASB are actively deliberating issues in the first phase of their

More information

Basic Accounting Concepts for Corporate Valuation

Basic Accounting Concepts for Corporate Valuation APPENDIX B Corporate Valuation for Portfolio Investment: Analyzing Assets, Earnings, Cash Flow, Stock Price, Governance, and Special Situations by Robert A. G. Monks, Alexandra Reed Lajoux Copyright 2011

More information

Accounting Information Qualitative Characteristics Gap: Evidence from Jordan

Accounting Information Qualitative Characteristics Gap: Evidence from Jordan Accounting Information Qualitative Characteristics Gap: Evidence from Jordan Ahmad N. Obaidat Tafila Technical University, Tafila, Jordan [Abstract] The general objective of financial reporting is to provide

More information

ACCOUNTING INFORMATION QUALITATIVE CHARACTERISTICS GAP: INVESTORS AND AUDITORS PERSPECTIVE

ACCOUNTING INFORMATION QUALITATIVE CHARACTERISTICS GAP: INVESTORS AND AUDITORS PERSPECTIVE ACCOUNTING INFORMATION QUALITATIVE CHARACTERISTICS GAP: INVESTORS AND AUDITORS PERSPECTIVE ANTHONY O. UNUIGBOKHAI Department of Accountancy Auchi Polytechnic, Auchi. and PIUS E. OHENHEN Department of Accountancy

More information

We have provided more specific comments in the attachments to this letter.

We have provided more specific comments in the attachments to this letter. October 9, 2008 Mr. Russell G. Golden Director of Technical Application and Implementation Activities Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, CT 06856-5116 Re: File Reference

More information

Chapter 2--Financial Reporting: Its Conceptual Framework

Chapter 2--Financial Reporting: Its Conceptual Framework Chapter 2--Financial Reporting: Its Conceptual Framework Student: 1. Accounting principles are theories, truths, and propositions that service as the basis for financial accounting and reporting. True

More information

CHAPTER 2. Conceptual Framework Underlying Financial Accounting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Brief. Concepts for Analysis

CHAPTER 2. Conceptual Framework Underlying Financial Accounting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Brief. Concepts for Analysis CHAPTER 2 Conceptual Framework Underlying Financial Accounting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Concepts for Analysis 1. Conceptual framework general.

More information

CHAPTER 2: FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK

CHAPTER 2: FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK Test Bank Intermediate Accounting: Reporting and Analysis 2nd Edition by Wahlen Jones Pagach Download: https://testbankarea.com/download/intermediate-accounting-reporting-analysis-2ndedition-solutions-manual-wahlen-jones-pagach/

More information

IPSASB Consultation Paper on the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities

IPSASB Consultation Paper on the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities Technical Director International Public Sector Accounting Standards Board International Federation of Accountants 277 Wellington Street West Toronto Ontario Canada M5V 3H2 Contact: D. McHugh Telephone:

More information

POST-IMPLEMENTATION REVIEW REPORT

POST-IMPLEMENTATION REVIEW REPORT MAY 2013 POST-IMPLEMENTATION REVIEW REPORT on FASB Statement No. 141 (revised 2007), Business Combinations 401 Merritt 7, PO Box 5116 Norwalk, Connecticut 06856-5116 T: 203.847.0700 F: 203.849.9714 www.accountingfoundation.org

More information

PRINCIPLES OF ACCOUNTING PBBS 203 LECTURER: RICHARD AMANKWA FOSU

PRINCIPLES OF ACCOUNTING PBBS 203 LECTURER: RICHARD AMANKWA FOSU PRINCIPLES OF ACCOUNTING PBBS 203 LECTURER: RICHARD AMANKWA FOSU History of Accounting Evidence of accounting records can be found in the Babylonian Empire (4500 B.C.), in pharaohs' Egypt and in the Code

More information

CHAPTER 2. Conceptual Framework for Financial Reporting 9, 10, 11, 30 6, Basic assumptions. 12, 13, 14 5, 7, 10 6, 7

CHAPTER 2. Conceptual Framework for Financial Reporting 9, 10, 11, 30 6, Basic assumptions. 12, 13, 14 5, 7, 10 6, 7 CHAPTER 2 Conceptual Framework for Financial Reporting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Concepts for Analysis 1. Conceptual framework general. 2. Objectives

More information

Re: Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting

Re: Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting Mr Hans Hoogervorst Chairman International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Email: commentletters@ifrs.org 9 November 2015 Re: Exposure Draft ED/2015/3 Conceptual

More information

The Conceptual Framework for Financial Reporting

The Conceptual Framework for Financial Reporting IASB documents published to accompany The Conceptual Framework for Financial Reporting The Conceptual Framework for Financial Reporting was issued in September 2010. The text of the Conceptual Framework

More information

The CNC welcomes the opportunity to comment on the Exposure Draft of an improved conceptual framework for financial reporting.

The CNC welcomes the opportunity to comment on the Exposure Draft of an improved conceptual framework for financial reporting. Conseil National de la Comptabilité 3, Boulevard Diderot 75572 PARIS CEDEX 12 Téléphone 01 53 44 52 01 Télécopie 01 53 18 99 43/01 53 44 52 33 Internet http://www.cnc.bercy.gouv.fr Mel jean-francois.lepetit@cnc.finances.gouv.fr

More information

Re: Comments on IASB s Discussion Paper, A Review of the Conceptual Framework for Financial Reporting

Re: Comments on IASB s Discussion Paper, A Review of the Conceptual Framework for Financial Reporting January 14, 2014 Mr. Hans Hoogervorst Chairman International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Dear Hans, Re: Comments on IASB s Discussion Paper, A Review of the

More information

Chapter 2. The CPA Profession

Chapter 2. The CPA Profession Chapter 2 The CPA Profession Review Questions 2-1 The four major services that CPAs provide are: 1. Audit and assurance services Assurance services are independent professional services that improve the

More information

Deloitte Touche Tohmatsu is pleased to comment on the Exposure Draft of An improved Conceptual Framework for Financial Reporting ( the ED ).

Deloitte Touche Tohmatsu is pleased to comment on the Exposure Draft of An improved Conceptual Framework for Financial Reporting ( the ED ). Deloitte Touche Tohmatsu 2 New Street Square London EC4A 3BZ United Kingdom Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198 www.deloitte.com Sir David Tweedie, Chairman International Accounting Standards

More information

Finally, the IASB needs to raise the profile of the CP to ensure preparers understand the role of the CP and when to apply it.

Finally, the IASB needs to raise the profile of the CP to ensure preparers understand the role of the CP and when to apply it. 1 30 November 2015 The Chairman International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Dear Sir Exposure Draft 2015/3 Conceptual Framework for Financial Reporting Thank

More information

29 September International Accounting Standards Board 30 Cannon Street, London EC4M BXH. United Kingdom. Dear Madam, dear Sir

29 September International Accounting Standards Board 30 Cannon Street, London EC4M BXH. United Kingdom. Dear Madam, dear Sir 29 September 2008 International Accounting Standards Board 30 Cannon Street, London EC4M BXH United Kingdom Tower 42 25 Old Broad Street London EC2N 1HQ United Kingdom t + 44 (0) 20 7382 1770 f + 44 (0)

More information

Getting a Better Framework Reliability of financial information Bulletin

Getting a Better Framework Reliability of financial information Bulletin of financial information Bulletin april 2013 2013 European Financial Reporting Advisory Group (EFRAG), the French Autorité des Normes Comptables (ANC), the Accounting Standards Committee of Germany (ASCG),

More information

CA HOUSE 21 HAYMARKET YARDS EDINBURGH EH12 5BH PHONE: FAX: WEB:

CA HOUSE 21 HAYMARKET YARDS EDINBURGH EH12 5BH PHONE: FAX: WEB: CS/PSC-SUB/mb Ms Stephenie Fox Technical Director International Public Sector Accounting Standards Board International Federation of Accountants 277 Wellington Street, 4 th Floor TORONTO Ontario M5V 3H2

More information

Chapter 2--Financial Reporting: Its Conceptual Framework

Chapter 2--Financial Reporting: Its Conceptual Framework Test Bank for Intermediate Accounting Reporting and Analysis 1st Edition by James M. Wahlen, Jefferson P. Jones, Donald Pagach Link download full: https://testbankservice.com/download/test-bank-for-intermediate-accountingreporting-and-analysis-1st-edition-by-wahlen-jones-pagach/

More information

FASB and IASB Reaffirm Commitment to Memorandum of Understanding

FASB and IASB Reaffirm Commitment to Memorandum of Understanding FASB and IASB Reaffirm Commitment to Memorandum of Understanding A Joint Statement of the FASB and IASB November 5, 2009 At our joint meeting in October 2009, we, the International Accounting Standards

More information

Agreeing the Terms of Audit Engagements

Agreeing the Terms of Audit Engagements International Auditing and Assurance Standards Board ISA 210 April 2009 International Standard on Auditing Agreeing the Terms of Audit Engagements International Auditing and Assurance Standards Board International

More information

September 26, International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom. Dear Sirs/Madams,

September 26, International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom. Dear Sirs/Madams, September 26, 2008 International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Comments on the Exposure Draft An improved Conceptual Framework for Financial Reporting: Chapter

More information

Review of Conceptual Framework Objective and Qualitative Characteristics

Review of Conceptual Framework Objective and Qualitative Characteristics International Financial Reporting Standards Review of Conceptual Framework Objective and Qualitative Characteristics Stephen Cooper IASB Member Rachel Knubley Technical Principal Amy Bannister Technical

More information

2-2 The major characteristics of CPA firms that permit them to fulfill their social function competently and independently are:

2-2 The major characteristics of CPA firms that permit them to fulfill their social function competently and independently are: Link full download Solution Manual : http://testbankair.com/download/solution-manual-forauditing-and-assurance-services-16th-edition-by-arens-elder-beasley-and-hogan Link full download test bank: http://testbankair.com/download/test-bank-for-auditing-andassurance-services-16th-edition-by-arens-elder-beasley-and-hogan/

More information

Mr. Russell G. Golden Technical Director of the Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, CT

Mr. Russell G. Golden Technical Director of the Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, CT Deloitte & Touche LLP Ten Westport Road PO Box 820 Wilton, CT 06897-0820 September 30, 2008 Tel: +1 203 761 3000 Fax: +1 203 834 2200 www.deloitte.com Mr. Russell G. Golden Technical Director of the Financial

More information

VIII Financial Reporting Workshop Parma 22 and 23 June 2017 SUGGESTIONS FOR FUTURE RESEARCH IN FINANCIAL ACCOUNTING AND AUDITING

VIII Financial Reporting Workshop Parma 22 and 23 June 2017 SUGGESTIONS FOR FUTURE RESEARCH IN FINANCIAL ACCOUNTING AND AUDITING VIII Financial Reporting Workshop Parma 22 and 23 June 2017 SUGGESTIONS FOR FUTURE RESEARCH IN FINANCIAL ACCOUNTING AND AUDITING STEFANO AZZALI University of Parma Department of Economics and Business

More information

Submission on Exposure Draft ED 264: Conceptual Framework for Financial Reporting

Submission on Exposure Draft ED 264: Conceptual Framework for Financial Reporting 5 November 2015 Kris Peach Chair Australian Accounting Standards Board Podium Level, Level 14, 530 Collins Street Melbourne, VIC 3000 Australia CPA Australia Ltd ABN 64 008 392 452 Level 20, 28 Freshwater

More information

Theoretical framework of FinancialAccounting Standards Board (FASB) and new theoretical framework as the product of revolution in accounting model

Theoretical framework of FinancialAccounting Standards Board (FASB) and new theoretical framework as the product of revolution in accounting model AENSI Journals Advances in Environmental Biology Journal home page: http://www.aensiweb.com/aeb.html Theoretical framework of FinancialAccounting Standards Board (FASB) and new theoretical framework as

More information

IASB Request for Information of Post-Implementation Review: IFRS 3 Business Combinations

IASB Request for Information of Post-Implementation Review: IFRS 3 Business Combinations Our Ref.: C/FRSC Sent electronically through the IASB Website (www.ifrs.org) 30 May 2014 International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Dear Sirs, IASB Request

More information

10 June 2011 Dear Stephenie, COMMENTS ON PHASE I, II AND III OF THE IPSASB S CONCEPTUAL FRAMEWORK PROJECT

10 June 2011 Dear Stephenie, COMMENTS ON PHASE I, II AND III OF THE IPSASB S CONCEPTUAL FRAMEWORK PROJECT The Technical Director P O Box 74129 Lynnwood Ridge 0040 Tel. 011 697 0660 Fax. 011 697 0666 International Public Sector Accounting Standards Board International Federation of Accountants 277 Wellington

More information

Scope of this NSA... Effective Date... 2 Objective... 3 Definitions Requirements. Preconditions for an Audit...

Scope of this NSA... Effective Date... 2 Objective... 3 Definitions Requirements. Preconditions for an Audit... Introduction NEPAL STANDARD ON AUDITING 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS (Effective for audits of financial statements for periods beginning on Shrawan 1, 2072 Voluntary Compliance and Mandatory

More information

Re: A Review of the Conceptual Framework for Financial Reporting (DP/2013/1)

Re: A Review of the Conceptual Framework for Financial Reporting (DP/2013/1) 277 Wellington Street West, Toronto, ON Canada M5V 3H2 Tel: (416) 977-3322 Fax: (416) 204-3412 www.frascanada.ca 277 rue Wellington Ouest, Toronto (ON) Canada M5V 3H2 Tél: (416) 977-3322 Téléc : (416)

More information

Re: FEE comments on IASB Exposure Draft Conceptual Framework for Financial Reporting (ED/2015/3) Role of the Conceptual Framework

Re: FEE comments on IASB Exposure Draft Conceptual Framework for Financial Reporting (ED/2015/3) Role of the Conceptual Framework Mr Hans Hoogervorst Chairman International Accounting Standards Board 30 Cannon Street GB LONDON EC4M 6XH E-mail: commentletters@ifrs.org 18 November 2015 Ref.: ACC/PFK/HBL/PPA/VRA Dear Mr Hoogervorst,

More information

AGREEING THE TERMS OF AUDIT ENGAGEMENTS SRI LANKA AUDITING STANDARD 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS

AGREEING THE TERMS OF AUDIT ENGAGEMENTS SRI LANKA AUDITING STANDARD 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS SRI LANKA STANDARD 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS (Effective for audits of financial statements for periods beginning on or after 01 January 2014) CONTENTS Paragraph Introduction Scope of

More information

CHAPTER 1 CORPORATE REPORTING - AN INTRODUCTION. Corporate reporting is defined as a system through which both financial as well

CHAPTER 1 CORPORATE REPORTING - AN INTRODUCTION. Corporate reporting is defined as a system through which both financial as well 1 CHAPTER 1 CORPORATE REPORTING - AN INTRODUCTION 1.1 Concept of Corporate Reporting: Corporate reporting is defined as a system through which both financial as well as non financial information consisting

More information

Conceptual Framework For Financial Reporting

Conceptual Framework For Financial Reporting MODUL-1 Financial Accounting Conceptual Framework For Financial Reporting By MUH. ARIEF EFFENDI,SE,MSI,AK,QIA Magister Accounting Program (MAKSI) BUDI LUHUR UNIVERSITY Jakarta - Indonesia 2010 Conceptual

More information

IAASB Main Agenda (December 2009) Agenda Item. Engagements to Compile Financial Information Issues and IAASB Task Force Proposals I.

IAASB Main Agenda (December 2009) Agenda Item. Engagements to Compile Financial Information Issues and IAASB Task Force Proposals I. Agenda Item 3-A Engagements to Compile Financial Information Issues and IAASB Task Force Proposals I. Objective 1. The objective of this Paper is to consider significant issues to be addressed in the revision

More information

ASB Meeting January 12-15, 2015

ASB Meeting January 12-15, 2015 ASB Meeting January 12-15, 2015 Agenda Item 3A Chapter 1, Concepts Common to All Attestation Engagements, of Attestation Standards: Clarification and Recodification Introduction 1.1 This chapter of Statements

More information

INTERNATIONAL STANDARD ON AUDITING 701 COMMUNICATING KEY AUDIT MATTERS IN THE INDEPENDENT AUDITOR S REPORT

INTERNATIONAL STANDARD ON AUDITING 701 COMMUNICATING KEY AUDIT MATTERS IN THE INDEPENDENT AUDITOR S REPORT INTERNATIONAL STANDARD ON AUDITING 701 COMMUNICATING KEY AUDIT MATTERS IN THE INDEPENDENT AUDITOR S REPORT (Effective for audits of financial statements for periods ending on or after December 15, 2016)

More information

Standard on Auditing (SA) 701, Communicating Key Audit Matters in the Independent Auditor s Report Contents Paragraph(s) Introduction Scope of this SA

Standard on Auditing (SA) 701, Communicating Key Audit Matters in the Independent Auditor s Report Contents Paragraph(s) Introduction Scope of this SA Standard on Auditing (SA) 701, Communicating Key Audit Matters in the Independent Auditor s Report Contents Paragraph(s) Introduction Scope of this SA... 1 5 Effective Date... 6 Objectives... 7 Definition...

More information

Chapter 2. The CPA Profession

Chapter 2. The CPA Profession Chapter 2 The CPA Profession Review Questions 2-1 The four major services that CPAs provide are: 1. Audit and assurance services Assurance services are independent professional services that improve the

More information

Current Issues In Accounting:

Current Issues In Accounting: Current Issues In Accounting: 1 WILL LONDON RULE THE ACCOUNTING WORLD? Ann Gibson, PhD, CPA Andrews University Current Issues in Accounting 2 Five Current Issues: Converging U.S. GAAP and International

More information

responses to exposure draft and consultation papers

responses to exposure draft and consultation papers IPSASB Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities Exposure Draft - Role, Authority and Scope; - Objectives and Users; - Qualitative Characteristics; and - Reporting

More information

Contact: / / P age Theory Base of Accounting: AS & IFRS

Contact: / / P age Theory Base of Accounting: AS & IFRS 1 P age Theory Base of Accounting: AS & IFRS ACCOUNTING PRINCIPLES Meaning: Accounting Principles the rules adopted by accountants universally while recording accounting transactions. These rules etc.

More information

A. Hamidi-Ravari/FRRaG (Financial Reporting, Regulation and Governance) 2005, 4:2. The IASB s Research Project on Joint Ventures led by the AASB

A. Hamidi-Ravari/FRRaG (Financial Reporting, Regulation and Governance) 2005, 4:2. The IASB s Research Project on Joint Ventures led by the AASB The IASB s Research Project on Joint Ventures led by the AASB Ahmad Hamidi-Ravari, Project Manager, Australian Accounting Standards Board Abstract In April 2003, the IASB asked the AASB to take responsibility

More information

THE CONCEPTUAL FRAMEWORK FOR GENERAL PURPOSE FINANCIAL REPORTING BY PUBLIC SECTOR ENTITIES

THE CONCEPTUAL FRAMEWORK FOR GENERAL PURPOSE FINANCIAL REPORTING BY PUBLIC SECTOR ENTITIES THE FOR GENERAL PURPOSE FINANCIAL REPORTING BY PUBLIC SECTOR ENTITIES History of the Conceptual Framework Chapters 1 4 of the Conceptual Framework were issued in January 2013. 24 THE FOR GENERAL PURPOSE

More information

Agreeing the Terms of Audit Engagements

Agreeing the Terms of Audit Engagements ISA 210 Issued March 2009; updated February 2018 International Standard on Auditing Agreeing the Terms of Audit Engagements INTERNATIONAL STANDARD ON AUDITING 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS

More information

Chapter 1. Learning Objective 1, 2. Capital Allocation. Efficient Capital Allocation. Financial Accounting and Accounting Standards

Chapter 1. Learning Objective 1, 2. Capital Allocation. Efficient Capital Allocation. Financial Accounting and Accounting Standards Chapter 1 Financial Accounting and Accounting Standards Learning Objective 1, 2 Identify the major financial statements and other means of financial reporting Explain how accounting assists in the efficient

More information

INTERNATIONAL STANDARD ON AUDITING 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE CONTENTS

INTERNATIONAL STANDARD ON AUDITING 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE CONTENTS Introduction INTERNATIONAL STANDARD ON AUDITING 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE (Effective for audits of financial statements for periods beginning on or after December 15, 2009) +

More information

FASB Issues Proposal on the GAAP Hierarchy

FASB Issues Proposal on the GAAP Hierarchy FASB Issues Proposal on the GAAP Hierarchy Norwalk, CT, April 28, 2005 In connection with its effort to improve the quality of financial accounting standards and the standard-setting process, the Financial

More information

REPORTING SERVICE PERFORMANCE INFORMATION

REPORTING SERVICE PERFORMANCE INFORMATION REPORTING SERVICE PERFORMANCE INFORMATION RESPONSE FROM THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SCOTLAND TO THE INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS BOARD 13 April 2012 1 Introduction 1.

More information

1. Auditors may be independent in fact but not independent in appearance. 3. Attestation standards provide guidance for a wide variety of engagements

1. Auditors may be independent in fact but not independent in appearance. 3. Attestation standards provide guidance for a wide variety of engagements Chapter 02 Professional Standards True / False Questions 1. Auditors may be independent in fact but not independent in appearance. True False 2. Auditing Standards issued by the PCAOB are the sole source

More information

International Management Journals

International Management Journals International Management Journals www.managementjournals.com International Journal of Applied Finance for Non-Financial Managers Volume 1 Issue 2 Coverdrive Ltd: Performance Reporting to the Board Dr Philip

More information

Re: IASB Request for views on Effective Dates and Transition Methods

Re: IASB Request for views on Effective Dates and Transition Methods Organismo Italiano di Contabilità OIC (The Italian Standard Setter) Italy, 00187 Roma, Via Poli 29 Tel. + 39 06 6976681 fax +39 06 69766830 e-mail: presidenza@fondazioneoic.it International Accounting

More information

South African Assurance Engagements Practice Statement (SAAEPS) 1

South African Assurance Engagements Practice Statement (SAAEPS) 1 Proposed SAAEPS 1 November 2017 Comments requested by 29 March 2018 South African Assurance Engagements Practice Statement (SAAEPS) 1 Sustainability Assurance Engagement Concepts: Evaluating the Rational

More information

Full file at https://fratstock.eu CHAPTER 2

Full file at https://fratstock.eu CHAPTER 2 CHAPTER 2 Conceptual Framework for Financial Reporting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Concepts for Analysis 1. Conceptual framework general. 2. Objective

More information

CHAPTER 2. Conceptual Framework for Financial Reporting 9, 10, 11 9, Basic assumptions. 12, 13, 14, 25 8, 9 6, 7, 9

CHAPTER 2. Conceptual Framework for Financial Reporting 9, 10, 11 9, Basic assumptions. 12, 13, 14, 25 8, 9 6, 7, 9 CHAPTER 2 Conceptual Framework for Financial Reporting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Concepts for Analysis 1. Conceptual framework general. 2. Objective

More information

COMPANY S FINANCIAL STATEMENTS. ANALYSIS AND DECISIONS. Resume

COMPANY S FINANCIAL STATEMENTS. ANALYSIS AND DECISIONS. Resume UNIVERSITY ALEXANDRU IOAN CUZA, IAȘ I PhD THESIS COMPANY S FINANCIAL STATEMENTS. ANALYSIS AND DECISIONS Resume Professor Doctor: Neculai TABĂRĂ PhD. Olga PLEŞCO Iaşi, 2013 INTRODUCTION Economic importance

More information

SRI LANKA AUDITING STANDARD 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE CONTENTS

SRI LANKA AUDITING STANDARD 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE CONTENTS SRI LANKA AUDITING STANDARD 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE Introduction (Effective for audits of financial statements for periods beginning on or after 01 January 2012) CONTENTS Paragraph

More information

FEE Conference on 18 September. Corporate reporting of the future

FEE Conference on 18 September. Corporate reporting of the future FEE Conference on 18 September Corporate reporting of the future Good afternoon, ladies and gentlemen. First and foremost I would like to thank FEE for having EFRAG participate in this high level conference,

More information

EER Assurance Background and Contextual Information IAASB Main Agenda (December 2018) EER Assurance - Background and Contextual Information

EER Assurance Background and Contextual Information IAASB Main Agenda (December 2018) EER Assurance - Background and Contextual Information Agenda Item 8-C EER Assurance - Background and Contextual Information The September 2018 draft of the guidance was divided into two sections, with section II containing background and contextual information.

More information

INTERNATIONAL STANDARD ON AUDITING (IRELAND) 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS

INTERNATIONAL STANDARD ON AUDITING (IRELAND) 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS INTERNATIONAL STANDARD ON AUDITING (IRELAND) 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS MISSION To contribute to Ireland having a strong regulatory environment in which to do business by supervising and

More information

CHAPTER 2. Conceptual Framework for Financial Reporting 9, 10, 11 9, Basic assumptions. 12, 13, 14, 25 8, 9 6, 7, 9

CHAPTER 2. Conceptual Framework for Financial Reporting 9, 10, 11 9, Basic assumptions. 12, 13, 14, 25 8, 9 6, 7, 9 Intermediate Accounting 16th Edition Kieso Solutions Manual Full Download: http://testbanklive.com/download/intermediate-accounting-16th-edition-kieso-solutions-manual/ CHAPTER 2 Conceptual Framework for

More information

C H A P T E R 2 CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING

C H A P T E R 2 CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING C H A P T E R 2 CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING 2-1 Intermediate Accounting IFRS Edition Presented by; Ratna candra sari Email: ratna_candrasari@uny.ac.id Learning Objectives 1. Describe the

More information

CP:

CP: Adeng Pustikaningsih, M.Si. Dosen Jurusan Pendidikan Akuntansi Fakultas Ekonomi Universitas Negeri Yogyakarta CP: 08 222 180 1695 Email : adengpustikaningsih@uny.ac.id 2-1 2-2 PREVIEW OF CHAPTER 2 2-3

More information

Conceptual Framework for Financial Reporting

Conceptual Framework for Financial Reporting 9 November 2015 IASB 30 Cannon Street London EC4M 6XH commentletters@ifrs.org Response to exposure draft ED/2015/3: Conceptual Framework for Financial Reporting The Financial Reporting and Analysis Committee

More information

Agreeing the Terms of Audit Engagements

Agreeing the Terms of Audit Engagements SINGAPORE STANDARD SSA 210 ON AUDITING Agreeing the Terms of Audit Engagements SSA 210, Agreeing the Terms of Audit Engagements superseded SSA 210, Terms of Audit Engagements in January 2010. The Companies

More information

THE AUDITOR S RESPONSIBILITIES AND FUNCTIONS, INTRODUCTION TO GAAS, AND THE GENERAL STANDARDS (INCLUDING THE QUALITY CONTROL STANDARDS)

THE AUDITOR S RESPONSIBILITIES AND FUNCTIONS, INTRODUCTION TO GAAS, AND THE GENERAL STANDARDS (INCLUDING THE QUALITY CONTROL STANDARDS) 100-230 THE AUDITOR S RESPONSIBILITIES AND FUNCTIONS, INTRODUCTION TO GAAS, AND THE GENERAL STANDARDS (INCLUDING THE QUALITY CONTROL STANDARDS) EFFECTIVE DATE AND APPLICABILITY Original Pronouncements

More information

INTERNATIONAL STANDARD ON AUDITING 620 USING THE WORK OF AN AUDITOR S EXPERT CONTENTS

INTERNATIONAL STANDARD ON AUDITING 620 USING THE WORK OF AN AUDITOR S EXPERT CONTENTS INTERNATIONAL STANDARD ON 620 USING THE WORK OF AN AUDITOR S EXPERT (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope

More information

Post-implementation Review: IFRS 8 Operating Segments

Post-implementation Review: IFRS 8 Operating Segments July 2012 Request for Information Post-implementation Review: IFRS 8 Operating Segments Comments to be received by 16 November 2012 Request for Information Post-implementation Review: IFRS 8 Operating

More information

SAS Quadra 05. Bloco J. CFC Brasília, Distrito Federal Brazil

SAS Quadra 05. Bloco J. CFC Brasília, Distrito Federal Brazil commentletters@ifrs.org IFRS Foundation 30 Cannon Street London EC4M 6XH United Kingdom Ref: ED 2015/3 Conceptual Framework for Financial Reporting Dear Board Members, The Comitê de Pronunciamentos Contábeis

More information

IAASB Main Agenda (September 2004) Page Agenda Item PROPOSED REVISED INTERNATIONAL STANDARD ON AUDITING 540

IAASB Main Agenda (September 2004) Page Agenda Item PROPOSED REVISED INTERNATIONAL STANDARD ON AUDITING 540 IAASB Main Agenda (September 2004) Page 2004 1651 Agenda Item 4-A PROPOSED REVISED INTERNATIONAL STANDARD ON AUDITING 540 AUDITING ACCOUNTING ESTIMATES AND RELATED DISCLOSURES (EXCLUDING THOSE INVOLVING

More information

STANDARD SETTING SECOND YEAR REVIEW OF ENHANCED AUDITOR S REPORTS

STANDARD SETTING SECOND YEAR REVIEW OF ENHANCED AUDITOR S REPORTS STANDARD SETTING SECOND YEAR REVIEW OF ENHANCED AUDITOR S REPORTS Executive Summary The reporting of key audit matters ( KAMs ), which became effective for listed entities on 15 December 2016, marks a

More information

Chapter 1. The Demand for Audit and Other Assurance Services

Chapter 1. The Demand for Audit and Other Assurance Services Solutions Manual Auditing and Assurance Services an Integrated Approach 15th Edition Alvin A. Arens Instant download and all chapters Auditing and Assurance Services an Integrated Approach 15th Edition

More information

Re: Effects of using International Financial Reporting Standards (IFRS) in the European Union (EU).

Re: Effects of using International Financial Reporting Standards (IFRS) in the European Union (EU). European Commission SPA2 00/089 1049 Brussels Belgium Submitted via e-mail MARKT-F3@ec.europa.eu Wojciech.FURMANSKI@ec.europa.eu 7 November 2014 Dear Sir/Madam Re: Effects of using International Financial

More information

Auditing Standard ASA 210 Agreeing the Terms of Audit Engagements

Auditing Standard ASA 210 Agreeing the Terms of Audit Engagements (June 2011) Auditing Standard ASA 210 Agreeing the Terms of Audit Engagements This compilation was prepared on 27 June 2011 taking into account amendments made by ASA 2011-1 Prepared by the Auditing and

More information

ISA 701, Communicating Key Audit Matters in the Independent Auditor s Report

ISA 701, Communicating Key Audit Matters in the Independent Auditor s Report ISA 701 April 2015 International Standard on Auditing ISA 701, Communicating Key Audit Matters in the Independent Auditor s Report Explanatory Foreword INTERNATIONAL STANDARD ON AUDITING 701 Communicating

More information

Initial Professional Development Technical Competence (Revised)

Initial Professional Development Technical Competence (Revised) IFAC Board Final Pronouncement January Exposure 2014 Draft October 2011 Comments due: February 29, 2012 International Education Standard (IES) 2 Initial Professional Development Technical Competence (Revised)

More information

CPA REVIEW SCHOOL OF THE PHILIPPINES M a n i l a AUDITING THEORY AUDIT PLANNING

CPA REVIEW SCHOOL OF THE PHILIPPINES M a n i l a AUDITING THEORY AUDIT PLANNING CPA REVIEW SCHOOL OF THE PHILIPPINES M a n i l a Related PSAs: PSA 300, 310, 320, 520 and 570 Appointment of the Independent Auditor AUDITING THEORY AUDIT PLANNING Page 1 of 9 Early appointment of the

More information

Request for Information Post-implementation Review: IFRS 8 Operating Segments

Request for Information Post-implementation Review: IFRS 8 Operating Segments Ernst & Young Global Limited Becket House 1 Lambeth Palace Road London SE1 7EU Tel: +44 [0]20 7980 0000 Fax: +44 [0]20 7980 0275 www.ey.com International Accounting Standards Board 30 Cannon Street London

More information

Impact of FASB Qualitative Characteristics on the Promulgation of Statements of Financial Accounting Standards

Impact of FASB Qualitative Characteristics on the Promulgation of Statements of Financial Accounting Standards Association for Information Systems AIS Electronic Library (AISeL) AMCIS 2006 Proceedings Americas Conference on Information Systems (AMCIS) December 2006 Impact of FASB Qualitative Characteristics on

More information

Comments to be received by 30 June 2005

Comments to be received by 30 June 2005 4 April 2005 To: Members of the Hong Kong Institute of CPAs All other interested parties INVITATION TO COMMENT ON IAASB EXPOSURE DRAFTS OF PROPOSED ISA 600 (REVISED) THE AUDIT OF GROUP FINANCIAL STATEMENTS

More information

The Stock Exchange of Hong Kong Limited. Practice Note 21

The Stock Exchange of Hong Kong Limited. Practice Note 21 The Stock Exchange of Hong Kong Limited Practice Note 21 to the Rules Governing the Listing of Securities (the Exchange Listing Rules ) Issued pursuant to rule 1.06 of the Exchange Listing Rules DUE DILIGENCE

More information

International Standard on Auditing (UK) 620 (Revised June 2016)

International Standard on Auditing (UK) 620 (Revised June 2016) Standard Audit and Assurance Financial Reporting Council June 2016 International Standard on Auditing (UK) 620 (Revised June 2016) Using the Work of an Auditor s Expert The FRC s mission is to promote

More information

Corporate Governance Guidelines

Corporate Governance Guidelines Corporate Governance Guidelines Chapter 1. General Provisions Article 1. Purpose These guidelines set out the basic policy, framework and operating policy of the corporate governance of Fuji Heavy Industries

More information

Agenda Item 1B (marked) Proposed SAS, Communicating Key Audit Matters in the Independent Auditor s Report (AU-C 701)

Agenda Item 1B (marked) Proposed SAS, Communicating Key Audit Matters in the Independent Auditor s Report (AU-C 701) ASB Meeting July 17-20, 2017 Agenda Item 1B (marked) Proposed SAS, Communicating Key Audit Matters in the Independent Auditor s Report (AU-C 701) Requirements Application Material Introduction Scope of

More information

2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company.

2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company. Chapter 02 Professional Standards True / False Questions 1. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are

More information

Auditing Standard No. 18, Related Parties. 2. PCAOB AU Section 334, Related Parties. 4

Auditing Standard No. 18, Related Parties. 2. PCAOB AU Section 334, Related Parties. 4 June 23, 2014 Volume 21, Issue 16 Heads Up In This Issue: Standard: Themes and Considerations Audit Procedures Associated With Related Parties and Related-Party Transactions Audit Procedures Related to

More information

Good morning. I m pleased to be with all of you today here in Washington, a city that often gets a bad rap.

Good morning. I m pleased to be with all of you today here in Washington, a city that often gets a bad rap. Remarks of Russell G. Golden Chairman, Financial Accounting Standards Board AICPA Conference on Current SEC and PCAOB Developments Washington, DC December 10, 2013 Introduction Good morning. I m pleased

More information

AUDITOR-GENERAL S AUDITING STANDARD 4 THE AUDIT OF PERFORMANCE REPORTS. Contents

AUDITOR-GENERAL S AUDITING STANDARD 4 THE AUDIT OF PERFORMANCE REPORTS. Contents AUDITOR-GENERAL S AUDITING STANDARD 4 THE AUDIT OF PERFORMANCE REPORTS Contents Page Introduction 3-8301 Scope of this Standard 3-8301 Application 3-8303 Objectives 3-8303 Definitions 3-8304 Requirements

More information

21 July 2016 Kenyatta International Convention Centre, Nairobi - Room Tsavo 3. Statement. Presented by

21 July 2016 Kenyatta International Convention Centre, Nairobi - Room Tsavo 3. Statement. Presented by Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) High-level Policy Dialogue on Sustainability Reporting 21 July 2016 Kenyatta International Convention

More information

INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA

INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA 1 December 2015 International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Dear Sir/Madam, ICPAU SUBMISSION ON ED/2015/3

More information

Lecture 1 The demand for Audit, the audit report. Part 1: Chapter 1 The demand for Audit Assurance Services and Audit

Lecture 1 The demand for Audit, the audit report. Part 1: Chapter 1 The demand for Audit Assurance Services and Audit 22522 - Assurance Services and Audit Lecture 1 The demand for Audit, the audit report Part 1: Chapter 1 The demand for Audit Learning Objectives 1.! Describe assurance services, and distinguish audit services

More information

α β 19 November 2003 Office of the Secretary Public Company Accounting Oversight Board 1666 K Street, N.W. Washington, D.C.

α β 19 November 2003 Office of the Secretary Public Company Accounting Oversight Board 1666 K Street, N.W. Washington, D.C. UBS AG Financial Services Group P.O. Box, 8098 Zurich Tel. +41-1-234 11 11 Group Chief Risk Officer Member of the Group Managing Board 19 November 2003 Walter H. Stuerzinger GCCR-STR FH507 Pelikanstrasse

More information

A Public Interest Framework for the Accountancy Profession

A Public Interest Framework for the Accountancy Profession International Federation of Accountants Exposure Draft November 2010 Comments requested by March 25, 2011 IFAC Policy Position Paper #4 A Public Interest Framework for the Accountancy Profession REQUEST

More information