Scribd
Upload
25 views

Cases Chapter 1 - FA

Uploaded by

Kevin Deswanda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
25 views

Cases Chapter 1 - FA

Uploaded by

Kevin Deswanda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

1.

The Challenges Facing Financial Reporting


Much is right about international financial reporting. One reason for this success is that
financial statements and related disclosures capture and organize financial information in a
useful and reliable fashion. However, much still needs to be done. Here are some of the
major challenges.
Lola Otero, a new staff accountant, is confused because of the complexities involving
accounting standard setting. Spesifically, she is confused by financial reporting challenges.
Lola decides that she must review the environment in which accounting standards are set
and implemented, if she is to increase her understanding of the financial reporting
challenges.
Lola recalls that during her accounting education there was a chapter or two
regarding the environment of financial accounting and the development of IFRS. However,
she remembers that her instructor placed little emphasis on these chapters.

Instructions
(a) Help Lola by identifying the challenges facing financial reporting.
(b) Lola asks for guidance regarding the challenges facing financial reporting. Please assist
her by describing why the challenges facing financial reporting are happened.

2. Accounting, Analysis, and Principles


The founders of Oslo Company, Finn Elo and Vender Hakala, are about to realize their
dream of taking their company public. They are trying to better understand the various
legal and accounting issues they will face as a public company.

Accounting
(a) What are some of the reporting requirements that their company will have to comply
with when they offer securities to investors and creditors?
(b) Identify the two entities that are primarily responsible for establishing IFRS, which will
be applied when preparing their financial statements. Explain the relationship of these
two organizations to one another.

Analysis
(a) What is decision-usefulness?
(b) Briefly describe how the financial statements that Oslo prepares for its investors and
creditors will contribute to decision-usefulness.

Principles
Oslo will prepare its statements in conformity with IFRS. Finn and Vender have heard about a
high quality standards. Briefly explain this high quality standards and why globalization
demands a single set of high-quality international accounting standards ?

***

You might also like