Financial Reporting and Analysis Essay Example | Topics and Well Written Essays - 1000 words - 2

Financial Reporting and Analysis - Essay Example n laid down by the IASB and the FASB together with the intension of providing a sound future for the accounting standards which have moved to becoming more principals based, internally consistent and internationally converged. This paper has also dealt with the pros and cons of this framework and the agreements are based around the ‘international’ conceptual framework. The IASB is a board which aims at developing and helping to improve the general purpose financial statements, to make sure that it meets to the public interest (Mill, et.al., 2003). The IASB is one of the single high qualities, simple to understand and also one of the only global accounting standards which needs complete information of the general purpose financial statements. The International Accounting Standard Board (IASB) has made various proposals to improve the conceptual framework for financial reporting. The International Accounting Standard Board has proposed to improvise the objectives of the General Purpose Financial Reports (Kitabjian, 2008). The International Accounting Standard Board has focused on improving the General Purpose Financial Reports for potential investors and lenders. They suggest that the report aims at these groups of individuals to help them make informed decisions regarding their capital investments (IASB, 2008). The IASB also works in cooperation wi th the national accounting standard setters which provides for a meeting point for all the accounting standards from across the world. The use of fair value as opposed to the historical cost accounting has always been quite a controversial choice. In this case the use of fair value would prove to be more beneficial when compared to the historical cost accounting as this would have reduced the impact of the credit crunch. In the time of a credit problem and a troubled economy, the use of fair value is one which is most beneficial. The use of fair value is beneficial majorly because the use of the fair value provides