1. What accounting issues have been addressed in the article? Briefly summarise the issues2. In...

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1. What accounting issues have been addressed in the article? Briefly summarise the issues

2. In terms of the accounting issue being discussed, what did you agree/disagree with in the article? Provide support for your argument.

3. How does this article relate to theory/theories discussed in the Advanced Accounting unit? Demonstrate the connection to a theory.

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Please note: A copy of these readings for Part A of the examination will be provided in your examination script. The only resource allowed in the examination is your text book: Deegan, C 2014, Financial accounting theory, 4th edn, McGraw Hill Education (Australia) Pty Ltd. The text book may be annotated and can contain index tabs. Hans Hoogervorst, Chairman, International Accounting Standards Board (IASB), Trust, accountants and the economy, Al Faisaliah Hotel, Riyadh, Saudi Arabia, 7 March 2017 and Hans Hoogervorst, Chairman, International Accounting Standards Board, Safety in numbers, AICPA Conference, Washington, DC, US, 6 December 2016. Please note that copies of these readings are reproduced at the end of the exam paper for reference. AUTUMN/1H 2017 Page 1 of 9Trust, accountants and the economy Date: 7 March 2017 Speaker: Hans Hoogervorst, Chairman, International Accounting Standards Board Venue: Al Faisaliah Hotel, Riyadh, Saudi Arabia Introduction His Excellency Dr Majid bin Abdullah Al Qasabi, Minister of Commerce and Investment; other honourable current and former ministers of the Kingdom of Saudi Arabia; Dr Ahmad Almeghames, Secretary General of SOCPA; Michael Izza, chief executive of ICAEW; SOCPA and ICAEW members; ladies and gentlemen. This is my first opportunity to visit the Kingdom of Saudi Arabia and I am truly delighted to be here in Riyadh. It is also a great honour to be invited to take part in the celebration of SOCPA’s 25th anniversary. The International Accounting Standards Board and the IFRS Foundation cherish our cooperation with SOCPA, which we know as a highly competent, professional and reliable body. Over the years, SOCPA has established an excellent track record in strengthening the accounting profession in Saudi Arabia. Moreover, SOCPA is an important actor in the region – and has also played an important role in providing high quality translation of IFRS...

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David · Accepted Answer

QUESTION 1   Summarise the article 
ANSWER 1 
SUMMARY OF THE ARTICLE 
Following are the brief issues discussed by the Chairman IASB in his speeches- 
1. NEED FOR HARMONISED STANDARDS AT GLOBAL LEVEL- Due to the 
following changes in global economies, the global standards are required to be uniform or 
harmonized- 
a. Political changes over the period leading to economic forums like G20, EU, WTO 
b. Increase in Foreign direct investments 
c. Crisis on various parts of the globe like Asian crisis in 90’s, Global Scams like 
Enron, WorldCom, Satyam 
d. Technological revolution affecting all parts of globe. 
2. ROLE OF ACCOUNTANTS – The multiple role includes the duties as an auditor, 
business advisor and a finance manager 
3. MISSION FOR GLOBAL ACCOUNTING – The mission includes providing 
transparency, accountability and efficiency in the organizations. 
4. IMPORTANCE OF IFRS STANDARDS- They bring quality of financial information, 
comparability, helps various market participants get wiser decisions and provides 
economy in compliance for the entity that uses IFRS. 
5. PROBLEMS RELATED TO IFRS – The IFRS does not depict the performance details in 
as much details as may be desired by the users of financial statements. The Non – GAAP 
measures tend to overweigh the authentic GAAP data. Hence the manipulations created 
by Non- GAAP data disturbs the authentic accounting information. 
6. ROAD AHEAD FOR IASB 
a. Finalize a complex standard on Insurance contracts 
b. Harmonization with US GAAP (Adopt their best features) 
c. Improvement over the existing standards  
d. Improve the income statements by including contents of Performance reporting
QUESTION 2. Who are the stakeholders in the article? How are they 
impacted?  
ANSWER 2 
Following are the major stakeholders described in this article along with the expected impact of 
using IFRS compliant financial statements- 
1. BANKS- Banks will be ready to provide finances if they get trustworthy and comparative 
financial information from the business entities. The application of IFRS will help Banks 
in comparing data of various clients from same industry 
2. INVESTORS- The prospective investors can purchase shares and debentures of the 
company with more trust as they get the IFRS compliant financial information. 
3. BUSINESSMAN- They are bound to get funds at cheaper rate of interest due to global 
access and the overall cost of capital will decline. 
4. MULTINATIONAL ENTITIES- They will not be required to make different set of 
financial statements for each nation and the IFRS based statements will bring uniformity 
of all global financial statements. The consolidation of branches and subsidiaries would 
become easier and will require lesser adjustments 
5.

1. What accounting issues have been addressed in the article? Briefly summarise the issues 2. In terms of the accounting issue being discussed, what did you agree/disagree with in the article? Provide...

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