Read the following passage and answer the question that follows. Millions of dollars have been spent...

 

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Read the following passage and answer the question that follows. Millions of dollars have been spent adopting international financial reporting standards (IFRS) to help investors make comparisons between companies in global capital markets. But CFOs say they are useless and have driven financial disclosures to unmanageable levels of complexity. These criticisms come as the United States, the world's largest capital market, considers replacing US GAAP with IFRS "In eight years, I never got one question from fund managers or investment analysts about IFRS adjustments, former head of finance at a global insurer, Robert Geoffrey, said "investors rely on analyst reports and management briefings to understand companies numbers. If analysts did dive into the details, they would most likely misinterpret them, according to one financial director Brian Tarry. "Once you get into the notes you have to be technically trained. If you're not a lot of it could be simply misleading" A leading bank chief financial officer Craig David said IFRS numbers were disregarded by investors because they could obscure a company's true position Required: 1. Explain which qualitative characteristics of financial reporting from the IFRS Conceptual Framework appear not to be satisfied by corporate financial reports under IFRS in the opinion of the above quoted individuals. (4 marks) Enter your answer here. 2. Identify whether the views expressed in the extract are consistent with the view that corporate financial reports satisfy the central objective of financial reporting as identified by the IFRS Conceptual Framework. Read the following passage and answer the question that follows. Millions of dollars have been spent adopting international financial reporting standards (IFRS) to help investors make comparisons between companies in global capital markets. But CFOs say they are useless and have driven financial disclosures to unmanageable levels of complexity. These criticisms come as the United States, the world's largest capital market, considers replacing US GAAP with IFRS "In eight years, I never got one question from fund managers or investment analysts about IFRS adjustments, former head of finance at a global insurer, Robert Geoffrey, said "investors rely on analyst reports and management briefings to understand companies numbers. If analysts did dive into the details, they would most likely misinterpret them, according to one financial director Brian Tarry. "Once you get into the notes you have to be technically trained. If you're not a lot of it could be simply misleading" A leading bank chief financial officer Craig David said IFRS numbers were disregarded by investors because they could obscure a company's true position Required: 1. Explain which qualitative characteristics of financial reporting from the IFRS Conceptual Framework appear not to be satisfied by corporate financial reports under IFRS in the opinion of the above quoted individuals. (4 marks) Enter your answer here. 2. Identify whether the views expressed in the extract are consistent with the view that corporate financial reports satisfy the central objective of financial reporting as identified by the IFRS Conceptual Framework.

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1The above quoted individuals believe that the qualitative characteristics of financ... View the full answer