Dividends Proposed After the end of the Reporting Period Under IAS - Dividends declared after the end of the reporting period but before the financial statements are authorized for issue are not recorded as liability in the financial statements.
Under SAS - Dividends declared after the end of the reporting period but before the financial statements are approved and recorded as liabilities in the financial statements. Under SAS - Treated as a change in the accounting policy and is accounted for retrospectively i.
Entire Class to be revalued Under IAS - If an item of property, plant and equipment is revalued, the entire class of assets to which that asset belongs should be revalued. Under SAS — An entire class of assets can be revalued, or selection of assets for revaluation can be made on a systematic basis. Functional and presentation currencies may be different.
The standard contains detailed guidance on this. International harmonization of accounting standards is of much concern to the regulators, preparers, and users of financial information. These include the following: Firstly, financial analysts and investors need comparable and comprehensible financial information of foreign companies to be better help in their decision whether to buy a particular share or invest in other ventures.
The key issues that investors and financial analyst look for are reliability and comparability of the financial information. Better still, even if there are differences in the accounting standards between countries, investors and financial analysts need to be clear about the nature and magnitude of the differences.
More so, foreign companies that list their shares on the domestic stock exchange of another country would be required to provide sound and reliable financial information by the regulators of the stock exchange in the domestic country which meets the local standards. International grantors such as the World Bank would likewise, need harmonized accounting standards to facilitate the comparison of the performance of their borrower countries.
Secondly, multinational companies are required to prepare a consolidated financial statement so as to reflect the overall activities of the parent company and all the subsidiaries under its wings.
It would be a great relief to accountants if accounting standards were harmonized since the same standards would be used in preparing financial statements by the subsidiaries in other countries. Harmonizing accounting standards would also facilitate easy mobility of accountants from one subsidiary to another in different country. Finally, international accountancy firms are also much interested in harmonizing accounting standards in that it helps them in regulating their large client base.
Tax authorities also would benefit from harmonization of international accounting standards because it would be beneficial in dealing with foreign incomes by differences in the measurement of profit in different countries Nobes and Parker, The study, however, showed that there is less variability on the application of accounting standard on employee retirement benefit between quoted firms in Nigeria.
Oghuma and Iyoha investigated the level of compliance of listed insurance companies to accounting standards. They evaluated 15 out of the 25 listed insurance companies based on their compliance with 11 relevant standards.
There result was that quoted insurance companies generally comply with disclosure requirement of statement of accounting standards. However, in few situations where they did not comply, the concerned company preferred to pay penalty, because to pay penalty is cheaper than compliance Oghuma and Iyoha, Izedonmi and Kandutu have published empirical works on compliance with statement of accounting standards by companies.
Adeyemi studied the impacts that compliance have on financial reporting. From a study of 96 companies, the study showed that Nigerian companies comply with accounting standards reasonably well. It involved a review of the institutional framework for regulation and an empirical investigation of the regulated institutions. The document reported that most of the entities reviewed complied with limited number of national disclosure requirements and that disclosures by companies are summarily inadequate.
It, however, stated that banks generally comply with national accounting standards, despite their contravention of Bank and other Financial Institutions Act.
January 16, - Any company with a portfolio of leased assets will be working through the full implications of the new standard, IFRS 16 Leases, applicable for the first time in January 13, - Need-to-know information on international standards in the accounting and regulatory space.
Comparative international accounting. Harlow: Pearson. Roberts, C. International corporate reporting. Saw, P. A global accounting standard: The holy grail? Louche Eds. Heidelberg: Springer. Timothy, D. Paul Saw 1 Email author 1. IAS 2. IAS 7. IAS 8. IAS IFRIC 1. IFRIC 2. IFRIC 3. IFRIC 4. IFRIC 5. IFRIC 6. IFRIC 7. IFRIC 8.
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