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(Corporate Reporting) : Ghias Ul Hassan Khan

The document outlines key areas of corporate reporting, including the conceptual and regulatory framework, published company accounts, and ethical issues. It emphasizes the importance of the IASB Framework in ensuring useful financial statements and preventing creative accounting. Additionally, it discusses qualitative characteristics of financial information and various ethical challenges faced by directors in financial reporting.

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49 views15 pages

(Corporate Reporting) : Ghias Ul Hassan Khan

The document outlines key areas of corporate reporting, including the conceptual and regulatory framework, published company accounts, and ethical issues. It emphasizes the importance of the IASB Framework in ensuring useful financial statements and preventing creative accounting. Additionally, it discusses qualitative characteristics of financial information and various ethical challenges faced by directors in financial reporting.

Uploaded by

tuuuha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPS, PDF, TXT or read online on Scribd
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CR

(Corporate Reporting)

GHIAS UL HASSAN KHAN


Key areas of the subject
1. Conceptual and regulatory framework

2. Published company accounts

3. Consolidation or group accounts

4. Accounting standards

5. Ethical issues

6. Current development in corporate reporting

MAJU - KARACHI
MAJU - KARACHI
Conceptual & regulatory framework
The IASB Framework provides the rules and definitions that help in preparation of all financial
statements prepared under International Financial Reporting Standards (IFRS)

1.Ensures standards developed within a conceptual framework

2.Provide guidance on areas where no standard exists

3.Aids process to improve existing standards

4.Ensures financial statements contain information that is useful to users

5.Helps prevent creative accounting

MAJU - KARACHI
Conceptual framework includes:
1. Measurement basis

2. Presentation and disclosure

3. Derecognition

MAJU - KARACHI
Qualitative characteristics of financial
information
FUNDAMENTAL ENHANCING

Relevance
1. Predictive value 1. Comparability
2. Confirmatory
2. Verifiability
3. Materiality
3. Timeliness
Faithful representation
1. Free from error
4. Understandability
2. Completeness
3. Neutrality

MAJU - KARACHI
Elements of financial statements
Assets

Liabilities

Expenses

Revenue

Capital or Equity

MAJU - KARACHI
Measurement principle - basis
Historical cost

Value in use

Current cost of fair value

MAJU - KARACHI
Regulatory framework

MAJU - KARACHI
examples:

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Standard setting
process

MAJU - KARACHI
What do you mean by the word Ethic?

MAJU - KARACHI
Ethics and Ethical issues
Directors may try to manipulate information to:
 
๏ Increase their pay/bonuses
๏ Deliver specific targets e.g., EPS
๏ Reduce risk of insolvency e.g. through avoiding breach of loan covenants
๏ Avoiding regulatory interference
๏ Improve the appearance of part or all of the business prior to an IPO/disposal
๏ Understate revenue and overstate expenses to reduce tax liabilities

MAJU - KARACHI
Areas of ethical issues
๏ Leases Classification as short-term lease

๏ Financial assets Impairment

๏ PPE Policies

๏ Intangibles Research and development

๏ Goodwill Fair value vs. Proportionate share

MAJU - KARACHI
Thanks

MAJU - KARACHI

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