The Australian reports that one of Australia's top accounting firms says corporate annual reports are becoming too long and wants IFRS trimmed. Company representatives say that while IFRS has complicated accounting for financial instrument reporting alone, there are now more than 300 pages of rules, and guidance that did not exist under the old rules.

2. Is it IFRS rules based or principles based? 10%
4. If IFRS is principles-based, why do you think a standard focused on financial instruments comes with 300 pages of rules and guidance? 10%
6. Do you think the existence of such lengthy guidance notes is what Hoogendoorn meant when he commented on the tension between principles-based interpretations of IFRS and rules-based interpretations? 10%

Question 2.

A New Zealand newspaper reported that the integrated nature of capital markets, capital mobility and the global nature of the financial crisis highlighted the need for a set of high-quality, globally accepted accounting standards. The report goes on to state that banks specifically want to eliminate differential accounting treatment between jurisdictions. American banks reportedly spent US$27.6 million lobbying for the change.

2. Why, in particular, would a bank support a single set of global accounting standards? 10%
4. Why might American banks be so willing to spend so much money on lobbying? 10%
6. If you were an American bank, who would you lobby and why? 10%

Measurement

Question 3

Obtain annual reports from three companies in the same industry (usually available from the company websites) and consider what property, plant, and equipment include. Answer the following questions.

2. What measurement range is used to determine the number of these items in each company's report? Do you think it is valid to add items, considering the measurements used? How do you interpret the total amount of property, plant, and equipment in the financial statements? (20%)
4. Compare the sizes used by different companies for similar items. Are there inconsistencies in the way similar items are measured by different companies? (20%)

Answer rating: 100% (QA)

Question 1 IFRS Rulesbased or principlesbased IFRS International Financial Reporting Standards is generally considered principlesbased Principlesbased standards provide broad guidelines rather than sp... View the full answer