Corporate Accounting - IFRS - Corporate Accounting Assignment Help

Internal Code: 2ADGF

Corporate Accounting Assignment Help

TASK In an article entitled ‘Unwieldy rules useless for investors’ that appeared in the AustralianFinancial Review on 6 February 2012 (by Agnes King), the following extract appeared. Read the extract and then answer the question that follows. Millions of dollars have been spent adopting international financial reporting standards tohelp investors make like-for-like comparisons between companies in global capital markets. But CFOs say they are useless and have driven financial disclosures to unmanageable levels. The criticism comes as the United States, the world’s largest capital market, decides whetherto retire its domestic accounting standard (US GAAP) and adopt IFRS.“In seven years I never got one question from fund managers or investment analysts aboutIFRS adjustments,” former AXA head of finance Geoff Roberts said. “Investors...rely oninvestor reports and management briefings to understand companies’ numbers.” If analysts did delve into IFRS accounts, they would most probably misinterpret them,according to Wesfarmers finance director Terry Bowen. “Once you get into the notes youhave to be technically trained. If you’re not, lot of it could be misleading,” Mr Bowen said.Commonwealth Bank chief financial officer David Craig said IFRS numbers were disregarded by investors because they could actually obscure an institution’s true position.