IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2016i1p834-840.html
   My bibliography  Save this article

The Growing Importance Of International Financial Reporting Standards

Author

Listed:
  • Kornel Toth

    (Institute of Accounting and Finance Faculty of Economics and Business, University of Debrecen)

  • Eva Darabos

Abstract

This paper highlights the importance, development, and evolution of International Financial Reporting Standards (IFRS), emphasizing some relevant issues in contemporary accounting, such as the need for a globally recognized financial reporting system and a conceptual base of different accounting measurement approaches in order to increase transparency and comparability in financial reporting. The first section of the paper illustrates the main reasons for the changes in financial reporting that are required in order to satisfy the information needs of both existing and potential investors of business entities in global capital markets. The subsequent section describes the main purpose and role of financial accounting, followed by a description of different ways of regulating financial reporting emphasizing the increased role of the standard-setting activities of private-sector bodies, such as the International Accounting Standards Board (IASB). This section also reveals that the standards published by the IASB are gaining ever wider acceptance and recognition in today’s globalized world economy, although this also illustrates the growing future importance of IFRS and the IASB’s work in several areas. The next part of this section presents the main advantages, features, and stages of the standard-setting process of the IASB, providing evidence about how investors can use IASB’s standards as a valuable predictive device. The third section of the paper introduces some major problems associated with contemporary accounting measurement issues, for example delivering new measurement concepts in financial reporting. This section also establishes that measurement is fundamental to accounting, and for this reason the improvement of measurement concepts must be emphasized in financial reporting. In the last section the paper assesses the increased role of reporting under IFRS today and argues that the constant improvement of standard-setting contributes to satisfying the needs of investors. The main finding of this paper is that the continuous and marked improvement in standard-setting by the IFRS Foundation enhances the quality and usefulness of financial reporting.

Suggested Citation

  • Kornel Toth & Eva Darabos, 2016. "The Growing Importance Of International Financial Reporting Standards," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 834-840, July.
    • Handle: RePEc:ora:journl:v:1:y:2016:i:1:p:834-840
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2016/n1/81.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Domicián Máté & András István Kun & Veronika Fenyves, 2016. "The Impacts of Trademarks and Patents on Labour Productivity in the Knowledge-Intensive Business Service Sectors," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(41), pages 104-104, February.
    2. Young-Soo Choi & Ken Peasnell & Joao Toniato, 2013. "Has the IASB Been Successful in Making Accounting Earnings More Useful for Prediction and Valuation? UK Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 40(7-8), pages 741-768, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kiss Anita, 2016. "Value Creation And Different Dimensions Of Value In Corporate Practice," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 651-660, July.
    2. Eliwa, Yasser & Haslam, Jim & Abraham, Santhosh, 2021. "Earnings quality and analysts’ information environment: Evidence from the EU market," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 42(C).
    3. David Abad & M. Fuensanta Cutillas†Gomariz & Juan Pedro Sánchez†Ballesta & José Yagüe, 2018. "Does IFRS Mandatory Adoption Affect Information Asymmetry in the Stock Market?," Australian Accounting Review, CPA Australia, vol. 28(1), pages 61-78, March.
    4. Kubičková Viera & Krošláková Monika & Michálková Anna & Benešová Dana, 2018. "Gazelles in services: what are the specifics of their existence in Slovakia?," Management & Marketing, Sciendo, vol. 13(2), pages 929-945, June.
    5. Melik Ertugrul & Volkan Demir, 2018. "How Does Unobserved Heterogeneity Affect Value Relevance?," Australian Accounting Review, CPA Australia, vol. 28(2), pages 288-301, June.
    6. KOVÁCS Edit Veronika & HARANGI-RÁKOS Mónika, 2020. "Cities Vs The Countryside €“ Pros And Cons Of Urban And Rural Life," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 530-539, July.
    7. Eliwa, Yasser & Haslam, Jim & Abraham, Santhosh, 2016. "The association between earnings quality and the cost of equity capital: Evidence from the UK," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 125-139.
    8. Lale Guler, 2018. "Has SFAS 142 improved the usefulness of goodwill impairment loss and goodwill balances for investors?," Review of Managerial Science, Springer, vol. 12(3), pages 559-592, July.
    9. Ventsislava Nikolova-Minkova, 2022. "The Trademark Application Activity in Bulgaria According to the Nice Classification and Economic Sectors for the Period 2010-2020," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 109-141.
    10. Barniv, Ran R. & Myring, Mark & Westfall, Tiffany, 2022. "Does IFRS experience improve analyst performance?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 46(C).
    11. Judit Oláh & Sándor Kovács & Zuzana Virglerova & Zoltán Lakner & Maria Kovacova & József Popp, 2019. "Analysis and Comparison of Economic and Financial Risk Sources in SMEs of the Visegrad Group and Serbia," Sustainability, MDPI, vol. 11(7), pages 1-19, March.
    12. Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2021. "Uncertainty avoidance and stock price informativeness of future earnings," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    13. Rabeea Sadaf, 2017. "Advanced Statistical Techniques For Testing Benford'S Law," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 229-238, December.
    14. Harakeh, Mostafa & Lee, Edward & Walker, Martin, 2019. "The effect of information shocks on dividend payout and dividend value relevance," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 82-96.
    15. Akarsh Kainth & Ranik Raaen Wahlstrøm, 2021. "Do IFRS Promote Transparency? Evidence from the Bankruptcy Prediction of Privately Held Swedish and Norwegian Companies," JRFM, MDPI, vol. 14(3), pages 1-15, March.
    16. Anita Kiss, 2017. "The Empirical Examination Of Changes Related To Value Drivers In The Effects Of The 2007-2008 Crisis," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 10(4-5), April.

    More about this item

    Keywords

    financial reporting; International Financial Reporting Standards; conceptual framework; accounting measurement;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2016:i:1:p:834-840. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catalin ZMOLE (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.