Question

In: Accounting

In an article for the International Journal of Accounting, Auditing and Performance Evaluation, the scholars Axel...

In an article for the International Journal of Accounting, Auditing and Performance Evaluation, the scholars Axel Haller and Maria Scholssgang maintained that:

"According to the Framework of the IASB, profit is a frequently used measure of an

entity's performance. Yet in developing its standards, the IASB has not paid much

attention to the presentation of profit, but primarily concentrated on recognition and

measurement requirements. As a consequence, the International (Accounting) Financial

Reporting Standards (IAS/IFRS) do not provide a sound conceptual basis for the

presentation of income and expenses.”

Do you agree or disagree with their assessment? Why? (Please limit your response to 200 words or less)

Solutions

Expert Solution

Explanation :

Agree to the assessment made by Alexander and Maria scholssgang (i.e accounting standard do not provide proper concept for presentation of profit in financial statements.)

The first and foremost accounting standard (i.e IAS-1) presentation of financial statements States how the items will be presented or included for the current accounting period in the profit and loss account and excluded item to be presented in other comprehensive income. There is no discussion on presentation of profit in the financial statement in the accounting standard.

The IAS 18 (revenue recognisation) this accounting standard is formed by IFRS to fulfill the criteria for revenue recognisation, it tells us about when to recognise revenue from sale of products, services and earned income or from divided. Even in this accounting standard there is explanation given only about the revenue recognisation and their is no information about presentation of profit in the financial statement.

IAS 15 revenue from contract with customer describe how the reporter will explain the method and process to recognise the revenue from contracts with customer etc and there is no explanation on profit presentation.

At last, after studying the examples on accounting standard found by ifrs we can conclude that there is no particular accounting standard found to give guidelines for presentation of profit in the financial statements.


Related Solutions

In an article for the International Journal of Accounting, Auditing and Performance Evaluation, the scholars Axel...
In an article for the International Journal of Accounting, Auditing and Performance Evaluation, the scholars Axel Haller and Maria Scholssgang maintained that: "According to the Framework of the IASB, profit is a frequently used measure of an entity's performance. Yet in developing its standards, the IASB has not paid much attention to the presentation of profit, but primarily concentrated on recognition and measurement requirements. As a consequence, the International (Accounting) Financial Reporting Standards (IAS/IFRS) do not provide a sound conceptual...
In an article for the International Journal of Accounting, Auditing and Performance Evaluation, the scholars Axel...
In an article for the International Journal of Accounting, Auditing and Performance Evaluation, the scholars Axel Haller and Maria Scholssgang maintained that: "According to the Framework of the IASB, profit is a frequently used measure of an entity's performance. Yet in developing its standards, the IASB has not paid much attention to the presentation of profit, but primarily concentrated on recognition and measurement requirements. As a consequence, the International (Accounting) Financial Reporting Standards (IAS/IFRS) do not provide a sound conceptual...
Can I get a sample of a journal article evaluation on the journal entitled Entrepreneurial and...
Can I get a sample of a journal article evaluation on the journal entitled Entrepreneurial and Intrapreneurial Skills of Managers as Determinant of Organizational Performance of Small and Medium Enterprises in Davao Region, Philippines?
1. Portfolio Performance Discuss, in general, the performance attribution procedures. 2. International Investments Discuss performance evaluation...
1. Portfolio Performance Discuss, in general, the performance attribution procedures. 2. International Investments Discuss performance evaluation of international portfolio managers in terms of potential sources of abnormal returns. 3. Hedge Funds Explain the five major differences between hedge funds and mutual funds.
The article “Evaluation of Criteria for Setting Speed Limits on Gravel Roads” (S. Dissanayake, Journal of...
The article “Evaluation of Criteria for Setting Speed Limits on Gravel Roads” (S. Dissanayake, Journal of Transportation Engineering, 2011:57–63) measured speeds of vehicles on several roads in the state of Kansas. On South Cedar Niles, 73 vehicles were observed, and 49 of them were exceeding the speed limit. Can you conclude that more than 60% of the vehicles on South Cedar Niles exceed the speed limit?
wk4 Journal Article I need an article/review on the subject Accounting below with a 500 word...
wk4 Journal Article I need an article/review on the subject Accounting below with a 500 word summary of the article, How will accounting aid in the strategic management effort of an organization and with 2 references. Please
An article in the Australian Journal of Agricultural Research, “Non-Starch Polysaccharides and Broiler Performance on Diets...
An article in the Australian Journal of Agricultural Research, “Non-Starch Polysaccharides and Broiler Performance on Diets Containing Soyabean Meal as the Sole Protein Concentrate” (1993, Vol. 44, No. 8, pp. 1483–1499) determined the essential amino acid (Lysine) composition level of soybean meals are as shown below (g/kg): 22.2 24.7 20.9 26.0 27.0 24.8 26.5 23.8 25.6 23.9 Round your answers to 2 decimal places. (a) Construct a 95% two-sided confidence interval for σ2. ≤σ2≤ (b) Calculate a 95% lower confidence...
International Standards on Auditing to Auditors
Advantages and disadvantages of international standards on auditing to auditors Effects of ISAs being enforceable by law
Evaluate Stephen Moehrle article 2010) on response to the Financial Accounting Standards Board's and International Accounting...
Evaluate Stephen Moehrle article 2010) on response to the Financial Accounting Standards Board's and International Accounting Standard Boatd's Joint Discussion paper Entitled preliminary views on Financial Statement Presentation.
Research the Virtual Library or an accounting journal and find an article that discusses purchase orders...
Research the Virtual Library or an accounting journal and find an article that discusses purchase orders or inventory controls. Explain any experience you may have had with purchase orders or inventory controls.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT