Financial Reporting Standards Essay Example | Topics and Well Written Essays - 2000 words

Financial Reporting Standards - Essay Example There has been progress towards the development of single, globally accepted accounting standards. The goal is however yet to be realized. The United States is currently working towards the convergence of Generally Accepted Accounting Principles with International Financial Reporting Standards (IFRS). Crucial convergence projects from the International Accounting Standards Board (IASB) and the U.S Financial Accounting Standards Board (FASB) have continued to produce good results in an effort to converge the two Accounting and Financial reporting standards. This process of dissecting and eliminating the possible difference between that may the two standards is however costly and consumes a lot of time. The alignment of the underlying principles and the overall methodologies is an effective approach. A significant difference continues to arise though the underlying principles and the overall methodology regarding these standards are harmonized. As the FASB and the IASB continues on their convergence work, the U.S Securities and Exchange Commission (SEC) continues to make significant progress aimed at increasing the acceptance of the IFRSs and abolishing the US GAAPs .Also, PWC has helped companies' to successfully understand the IFRS. It has developed a clear IFRS conversion method ology which is aimed at providing lasting solutions (Vincent C. Ross and Institute of Accounting 23).The Association of Chattered Certified Accountants (ACCA) argues that the convergence of US GAAP and IFRS is crucial because the harmonization of the two standards will help to raise the investors confidence around the world .This is because the same accounting policies and procedures will be used world wide for same events. The harmonization is also believed to have a cost reduction impact as far as individual companies are concerned .This is due to the high level of confidence in timely and reliable information. The harmonization is also essential for companies that have joint listings with America and other countries. The preparation costs thus will be minimized. In addition, the convergent of the two standards will enhance worldwide mobility of labor in that professional and in particular, the accountants will be eligible to work in other countries as the same reporting standards apply elsewhere. The IFRS framework states that the ultimate aim of financial statements is to give information in relation to an entity to users for decision-making. The users of the information in the financial statement include the consumers, employees, management, government, competitors, among other users.The assumptions underlying in the International Financial Reporting Standards are that the entity is a going concern one and that the entity uses the accrual accounting concept in preparing the financial statements except cash flow preparation. In accrual, concept revenues and expenses are recognized once they occur and not that cash is paid or gained. In going concern, the company is deemed to continue in its operations even in the future neither does it have intentions to close down or curtail its operations. The company directors are thus bound to evaluate whether the going concern hypothesis is appropriate during the actual reporting of financial stat

Edward Tufte Graphics Essay Example | Topics and Well Written Essays - 2000 words

Edward Tufte Graphics - Essay Example In addition he insists that an excellent graphic should be one that is multivariate. Eventually, he insists that an excellent graphic should speak nothing but the truth (Tufte’s principles 2009). Hence, any good graphic should exhibit these. In relation to principles of graphical integrity, Tufte insists that it has to be detailed and clear. He advises that the graphic has to be thoroughly labeled and should be able to show data variation. He adds that the graphic should not quote any data out of the context. Furthermore, the principle warns of exceeding the dimensions of data depicted by the graphic (Darzynkiewicz, Robinson & Roederer 2009, p. 45). Hence, graphic integrity is a very useful tool graphic representation. Concerning the principles of data graphics, Tufte insists that any graphic information should above all things show the data. He insists that the data-ink ratio should be maximized in the graphic (Darzynkiewicz, Robinson & Roederer 2009, p. 45). Data-ink ratio i s simply the core of a graphic that cannot be erased. It could also imply data ink divided by the total ink that was used to print the graphic. It is basically the arrangement of non-redundant ink in relation to variation in the presented numbers (Darzynkiewicz, Robinson & Roederer 2009, p. 45). ... Tufte insisted that people should forgo chartjunk, including the grid, the duck and moire vibration (Liere, Adriaansen & Elena 2009, p. 6). For any good graphic, details of no importance should not be included. Tufte also came up with the principle of erasing and data-ink maximization so as to be applied in some graphical designs (Liere, Adriaansen & Elena 2009, p. 6). He insisted that if these principles were applied on the scatter plot and the box plot among others, new designs would be created. He insisted that for the scatter plot, one could edit the frame lines in order to display the minimum, maximum, median and the two quartiles for both variables (Liere, Adriaansen & Elena 2009, p. 6). In relation to the principle of multi-functioning graphical elements, Tufte insists that any graphical element is one that carries data information plus performs design functions left to non data ink. In following this principle, one is able to display several pieces of data at the same time in one graphic (Mizuno & Sheldon 2012). The principle basically mobilizes every graphical element sometimes several times in order to depict or show data. The graphical element that plots or locates or plots data is referred to as the data measure (Mizuno & Sheldon 2012). One can build data measures from data though it will increase the dimensionality of the graphic plus the quantitative details. He adds that varying shades of grey depict varying quantities in a better way than color, since they possess a natural visual hierarchy. In addition, graphical information can be organized for different aspects of data at different visual angles. Also, Tufte insists that for the