...Introduction: The primary purpose of financial and accounting management is to organize, plan, control and direct the financial and accounting activities, but to ensure that every stakeholder is adequately served. The effectiveness of financial and accounting management, therefore purely depends on the policies, regulations and frameworks that are designed and being evolved from time to time. According to Gray, Owen and Adams (1996) financial management is the core business discipline which is meant to ensure that financial resources are deployed in the most effective manner, within the best interest of every group of stakeholder. Moreover, the importance the financial management also increases in current business context because of the fact that economic and financial contexts have become uncertain and unpredictable in every region across the world. At the other end, financial management also supports the business activities and operations which include investment decision making, pricing, financial reporting as well as to meet the legal and regulatory obligations. This report also focuses on the different aspects of financial analysis and management to reflect its validity, reliability and usability in practice. The purpose of this report is to understand and examine the different aspects of financial management, which will be helpful to understand the effectiveness of financial management and its different aspects. In order to achieve the report’s objectives, below paper...
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...IAS 1 — Presentation of Financial Statements Page 1 of 14 IAS 1 — Presentation of Financial Statements Quick Article Links Overview IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. IAS 1 was reissued in September 2007 and applies to annual periods beginning on or after 1 January 2009. History of IAS 1 Date March 1974 January 1975 Development Exposure Draft E1 Disclosure of Accounting Policies IAS 1 Disclosure of Accounting Policies issued Comments Operative for periods beginning on or after 1 January 1975 June 1975 Exposure Draft E5 Information to Be Disclosed in Financial Statements published October 1976 IAS 5 Information to Be Disclosed in Financial Operative for periods beginning on Statements issued or after 1 January 1975 July 1978 Exposure Draft E14 Current Assets and Current Liabilities published November 1979 IAS 13 Presentation of Current Assets and Current Operative for periods beginning on Liabilities issued or after 1 January 1981 ...
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...(ROSC) Cambodia ACCOUNTING AND AUDITING May 15, 2007 Contents Executive Summary Preface Abbreviations and Acronyms I. Introduction II. Institutional Framework III. Accounting Standards as Designed and as Practiced IV. Auditing Standards as Designed and as Practiced V. Perception of the Quality of Financial Reporting VI. Policy Recommendations EXECUTIVE SUMMARY This report provides an assessment of accounting and auditing practices within the corporate sector in Cambodia with reference to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and the International Standards on Auditing (ISA) issued by the International Federation of Accountants (IFAC). This assessment is positioned within the broader context of the Cambodia’s institutional framework and capacity needed to ensure the quality of corporate financial reporting Cambodia is putting in place an institutional framework with regard to accounting, auditing, and financial reporting practices. However, institutional weaknesses in regulation, compliance, and enforcement of standards and rules still exist. The accounting and auditing statutory framework suffers from inconsistencies among different laws. Although the national accounting standards and auditing standards are based on IFRS, and ISA, respectively, they appear outmoded and have gaps in comparison with the international equivalents. There are varying compliance gaps in both accounting and auditing practices...
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...| IAS 28: Accounting for Associates | | Larry Richardson 6/16/2014 | Corporations tend to invest in other entities for various reasons but the main reason is to increase their own profits. When corporations purchase stock in other corporations there has to be a way to account for this transaction and to do this IAS 28 was introduced as Exposure Draft E28, Accounting for Investments in Associates and Joint Ventures, in July, 1986. The history of IAS 28 is as follows in the table below which shows the last amendment being in 2011 with an effective date of January 1, 2013. History of IAS 28 (as amended in 2011) July 1986 | Exposure Draft E28 Accounting for Investments in Associates and Joint Ventures | April 1989 | IAS 28 Accounting for Investments in Associates | 1 January 1990 | Effective date of IAS 28 (1989) | 1994 | IAS 28 was reformatted | December 1998 | IAS 28 was amended by IAS 39 Financial Instruments: Recognition and Measurement effective 1 January 2001 | 18 December 2003 | Revised version of IAS 28 issued by the IASB | 1 January 2005 | Effective date of IAS 28 (2003) | 10 January 2008 | Some significant revisions of IAS 28 as a result of the Business Combinations Phase II Project relating to loss of significant influence | 22 May 2008 | IAS 28 amended for Annual Improvements to IFRSs 2007 about impairment testing | 1 January 2009 | Effective date of May 2008 amendments to IAS 28 | 1 July 2009 | Effective date of January 2008 amendments...
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...Corporate Accountability and Responsibility with Sarbanes-Oxley Act and COSO Enron, Arthur Andersen, WorldCom. What does these companies and others have in common? They involved audit and corporate governance failures, resulting in the erosion of public confidence. Because of these high-profile corporate and accounting scandals, Congress passed the Public Company Accounting Reform and Investor Protection Act, commonly known as the Sarbanes Oxley Act of 2002 (SOX). SOX mandated reforms to improve financial disclosures from corporations and to prevent accounting fraud. I. SOX SOX applies to all public companies in the United States and international companies that have registered equity or debt securities under the Securities Exchange Act of 1934. It is also applicable to accounting firms that provide auditing services to these companies subject to the Act. Its purpose is to enhance corporate accountability and responsibility. The Eleven Titles There are eleven titles in SOX. Title I addresses public company accounting oversight board. Title II addresses an auditor’s independence. Title III addresses corporate responsibility. Title IV address enhanced financial disclosures. Title V addresses analyst conflicts of interest. Title VI addresses commission resources and authority. Title VII addresses studies and reports regarding consolidation, credit rating, violations, enforcement and investment banks. Title VIII addresses corporate and criminal fraud accountability...
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...agencies in Malaysia and operates under the Ministry of Finance. The treasury has five objectives which are: * Ensure sustained and continuous economic growth * Strengthen national competitiveness and economic failure * Ensure effective and prudent financial management * Purse a more equitable sharing of national wealth * Improve quality of life and well-being of society The general role and responsibility of Treasury is to inform, to plan and to implement fiscal and budgetary policy. Among the specific functions of Treasury are: * To formulate and implement fiscal and monetary policies in order to ensure effective and efficient distribution and management of financial resources * To formula financial management and accounting processes, procedures and standards to be implemented by all government * To manage the acquisition and disbursement of Federal government loans from domestic and external sources * To monitor that Minister of Finance Incorporated companies are managed effectively * To monitor the financial management of Ministries, Government Departments and Statutory Bodies * To formulate and administer policies related to be the management of Government procurement * To formulate policies and administer Government housing loans for public sector employees ii. Accountant General Department, which was known as Jabatan Akauntan Negara Malaysia (JANM) was formed before independence. The role and functions of JANM has...
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...process in the accounting world. The Financial Accounting Standards Board accomplishes this mission through a comprehensive and independent process that encourages broad participation, objectively considering all stakeholder views, and by being subjected to oversight by the Financial Accounting Foundation’s Board of Trustees. Through these few necessary requirements they help form a very effective and sound standard setting process. The first part of the standard setting process that plays a crucial role in this process is the Rules of Procedures. The Rules of Procedure of the standards setting process describes the FASB’s operating procedures, and includes the due process activities that are to be open to public participation or observation to provide transparency into the standards-setting process. These rules set forth procedures followed by the FASB in establishing and improving standards of financial accounting and reporting for nongovernmental entities, including procedures related to the issuance of such standards and other communications. They also describe briefly the relationship of the FASB to the Foundation and its two advisory councils, the Financial Accounting Standards Advisory Council and the Private Company Council. The FASB is an independent, private-sector body created to serve an important public interest. Since 1973, it has been the designated organization in the private sector for establishing and improving standards of financial accounting and reporting...
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...1: Presentation of Financial Statements Introduction The IASB – International Accounting Standards Board issued its framework for the Preparation and Presentation of Financial Statements in 1989. This is referred to as its conceptual framework. The framework sets out the concepts that underline preparation and presentation of financial statements for external users. The IASB framework assists the IASB: • “in the development of future International Accounting Standards and in its review of existing International Accounting Standards; and • in promoting the harmonisation of regulations, accounting standards and procedures relating presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by International Accounting Standards. In addition, the framework may assist: • preparers of financial statements in applying International Accounting Standards and in dealing with topics that have yet to form the subject of an International Accounting Standard; • auditors in forming an opinion as to whether financial statements conform with International Accounting Standards; • users of financial statements in interpreting the information contained in financial statements prepared in conformity with International Accounting Standards; and • those who are interested in the work of IASB, providing them with information about its approach to the formulation of accounting standards.” The framework...
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...Question 1. Identifying all the changes in accounting policy and accounting estimates that Harnischfeger made during financial year ending October 31, 1984. Also include in your discussion, what you believe may be real earnings management activities to affect profit. Estimate as accurately as possible, the effect of these changes on the company’s revenue, pre-tax profits and cash flows in 1984. Harnischfeger made the following changes in accounting policy and estimates: Harnischfeger made changes regarding the recognition of some types of sales. They decided to include products bought from Kobe Steel Ltd. and sold by them to be in its net sales, effective November 1983. Before that, only gross margin from products bought from Kobe was included. The company claimed that they wanted to present more fairly the nature of the business transactions with Kobe. Therefore, this increased the aggregate sales by $28 million during the fiscal year 1984. In my opinion, this may be real earnings management activity to affect profit because there is no solid reason for the company to make such changes. It was purely to increase the company’s revenue. In addition, effective fiscal 1984, Harnischfeger changed some of its foreign subsidiaries financial year-end to September 30 instead of July 31. This would affect the consolidated income statement of the company and it increased the net sales in 1984 by $5.4 million since this lengthened the reporting period to 14 months of operations of those...
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...IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. The objective of this Standard is to prescribe the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and corrections of errors. The Standard is intended to enhance the relevance and reliability of an entity’s financial statements, and the comparability of those financial statements over time and with the financial statements of other entities. Accounting policies Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. When an IFRS specifically applies to a transaction, other event or condition, the accounting policy or policies applied to that item shall be determined by applying the IFRS and considering any relevant Implementation Guidance issued by the IASB for the IFRS. In the absence of a Standard or an Interpretation that specifically applies to a transaction, other event or condition, management shall use its judgement in developing and applying an accounting policy...
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...for financial year 2012. This would help investors and researchers to decide on investing to SWM or not. SWM has been analyzed step by step in order to find out its true value in the industry. The analysts have first looked into SWM business and strategy where it has been noted that SWM was a result of merger of seven group holdings and Australian West Newspaper in order to expand and use their resources efficiently. Secondly, SWM accounting policies and procedures have been analyzed where they showed that the company is following the accounting standards and using their flexibility that was given by the standard in order to measure some accounts in the financial statement. This flexibility was compared to the industry where it has noted that the company is valuing these accounts in a proper way. Thirdly, a financial analysis was also undertaken. It has been understood that the company, though there was a merger, is managing their resources well that resulted to positive book and cash returns. Lastly, the forecasts of the said company, where the analyst has determined the company’s value and the full set of financial statement for 2012, were estimated and calculated intelligently. With the help of the four steps of business analysis, the group has recommended that it is safe to invest to seven west media even if merger has occurred twice in the last three financial year. I. INTRODUCTION In order for a business to stay competitive in the industry, an effective business...
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...The Road to IFRS in India A practical guide to IFRS 1 and first-time adoption The Road to IFRS in India - A practical guide to IFRS 1 and first-time adoption 2 Introduction The Road to IFRS International Financial Reporting Standards (IFRS) is fast becoming the global accounting language. Over 100 countries have now adopted IFRS and many more have committed to make the transition in the next few years. The benefits of global standards are widely acknowledged. For companies, however, the conversion to IFRS is a major change both for the finance function and for the wider business. The International Accounting Standards Board (IASB) has recognised the need for guidance. In 2003 it published IFRS 1 First-time adoption of International Financial Reporting Standards (IFRS 1). IFRS 1 covers the application of IFRS in a company's first IFRS financial statements. It starts with the basic premise that an entity applies IFRS for the first time on a fully retrospective basis. However, acknowledging the cost and complexity of that approach, it then establishes various exemptions in areas where retrospective application would be too burdensome or impractical. IFRS convergence in India India is one of the largest jurisdictions that is currently going through the process of convergence with IFRS. Considering the diversity and complexity amongst Indian Companies that will transition to IFRS reporting, the Ministry of Corporate Affairs (MCA) has announced a roadmap which requires...
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...FINANCIAL MANAGEMENT OF COURTS BUDGET Programme Director, Tererai Mafukidze Members of the South African Judges Commission, Members of the Venice Commission Various Professionals and members here present, Distinguished Guests, Registrars from various parts of the world, Ladies and Gentlemen Protocol observed. I am humbled to address this auspicious gathering of the South African Judges Commission and Venice Commissions Registrar’s workshop held in our most beautiful land, South Africa. Allow me, therefore, to extend a warm word of welcome to all newly appointed Registrars and also pay recognition to those of you who have been a pillar of strength at your various organizations ensuring enhanced administrative support and capacitating the Judiciary that you serve. You are indeed a critical foundation on which the future of judicial effectiveness lies. Ladies and Gentlemen: I have been requested to talk about Financial Management, Management of Courts Budgets and its Challenges. I am sure you will agree with me that anyone requested to talk about this topic, can do so for the whole day or two or even a week. I am saying so precisely because financial Management, Management of Courts Budget and its Challenges are extensive and to sum this up in 30 minutes is in itself a challenge. INTRODUCTION It is said that if managers expect their subordinates to adopt any of their wishes or characteristics, such as frugal qualities in the workplace, managers themselves must...
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...Egypt 's Accounting and Auditing Standards and the adoption of International Accounting Standards Brief history of accounting in Egypt Historically, Egyptian accounting was not capital-market oriented but rather followed the principles of macro-accounting with huge government intervention aimed at tightly controlling the economy -- and was closely connected with accounting for tax purposes. Economic liberalisation began in the mid 1990s – with aspirations aimed at creating a guided free market economy – this involved the reactivation of the stock exchange market in 1995 and a privatisation programme. The transition posed challenges for the Government, private sector institutions and accountants alike. Increasing the role of the private sector required changes to and reforms of accounting systems in order to support better decision-making, attract investments, stimulate economic development, and enhance foreign investors’ confidence in the market. Egyptian accounting and auditing standards (1997–2002) As part of the reform process, the Government of Egypt pursued a policy of harmonising (EAS- Egyptian Accounting Standards) with IAS, while ensuring that specific characteristics of the Egyptian operating environment were taken into account. As a result of Ministerial Decision No. 503, in October 1997 Egypt established the Permanent Committee for Accounting and Auditing Standards to issue EAS that were to be based on IAS, yet modified to suit the local arena. Although official...
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...the interests of investors and society, by creating fairness, transparency and accountability in business activities among employees, management and the board (Oman, 2001). Again, GCG increase public confidence in a corporation, and lowers the cost of capital for investment. According to a McKinsey study (2002), over 60% of investors cite Good Governance practices in a corporation as a key factor in their investment decisions. Today, GG becomes a slogan and a pride. Here, we can uses accounting as a mean for establishing and retaining corporate governance. Accounting is a process of compiling information for reporting the internal affairs of any entity to different stakeholders at the end of a certain interval. It is defined as the language of business and can play a vital role for ensuring and continuing with GCG. as a discipline, accounting practice is highly controlled by accounting standards in a global set up. As accounting becomes an international discipline and the practice of accounting is harmonized aligned with the varied needs of stakeholders, it can be used as a tool for ensuring good governance within a...
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