CHAPTER 3
FINANCIAL REPORTING STANDARDS
LEARNING OUTCOMES
After completing this chapter, you will be able to do the following:
- Describe the objective of financial statements and the importance of financial reporting standards in security analysis and valuation.
- Describe the roles and desirable attributes of financial reporting standard-setting bodies and regulatory authorities in establishing and enforcing reporting standards, and describe the role of the International Organization of Securities Commissions.
- Describe the status of global convergence of accounting standards and ongoing barriers to developing one universally accepted set of financial reporting standards.
- Describe the International Accounting Standards Board’s conceptual framework, including the objective and qualitative characteristics of financial statements, required reporting elements, and constraints and assumptions in preparing financial statements.
- Describe general requirements for financial statements under IFRS.
- Compare key concepts of financial reporting standards under IFRS and U.S. GAAP reporting systems.
- Identify the characteristics of a coherent financial reporting framework and the barriers to creating such a framework.
- Explain the implications for financial analysis of differing financial reporting systems and the importance of monitoring developments in financial reporting standards.
- Analyze company disclosures of significant accounting policies.
SUMMARY OVERVIEW
- The Objective of Financial Reporting: ...
