Comparative International Reporting (Accounting) Essay

Comparative International Reporting (Accounting) - Essay manakin financial reports should be understandable, relevant, comparable and reliable (New Zealand International Financial Reporting Standards.2008). Financial reportage as said earlier is mandatory in all countries irrespective of laws prevailing. Accounting reports are prepared agree to laws or standards framed for this object. In New Zealand the Financial insurance coverage standards board or the FRSB is responsible for developing, implementing and ensuring invoice standards in the country (New Zealand Equivalents to International Financial Reporting Standards. 2011). The FRSB forwards new accounting standards to the Accounting Standards retread board or the ASRB for approval. It overly works along with the International accounting standards board. In New Zealand issuers of securities and wide-ranging profit making reporting entities are required to fully comply with the international financial reporting standards. A ccording to the financial reporting act of 1993, reporting entities includes business which issues securities under the securities act and companies and other entities whose law requires them to comply with the act of 1993. The financial reporting act of 1993, places obligations to all such organizations to prepare financial statements in compliance with the generally accepted accounting practice within five months of their financial year. Smaller companies however issuers of securities and oversea companies suffer comply with less stringent requirements up to the limit of justification on their costs. It is also mandatory for companies to audit their financial statements and to file them with the registrar of companies in the public register. Meanwhile small overseas companies are exempted from this condition. The 1993 act has established the ASRB with the prime purpose to approve financial reporting standards. The Institute of lease accountants of New Zealand, a professional b ody is responsible for developing and submitting financial reporting standards to the board (Financial reporting law. 2010). Since the introduction of New Zealand eqvallent to the IFRS, all the entities have to work through ever changing and more multiform requirements of reporting. These challenges have reached the point of height when the entities are required to prepare and submit their annual report to component holders and other stake holders. With regard to presentation of the income statement, the companies have two options. The financial statements are approved for the purpose of issue within a period for 65 days average for listed entities and 100 days for non listed entities. Financial statements make up nearly 60% of the annual report. According to NZ IAS 1 , a minimum and transgress disclosure on the face of the income statement of revenue, finance costs, profit and loss share of associates and joint ventures accounted for utilise equity method, profit or loss and ta x expenses. Even though there is no proper(postnominal) requirement to show operating expense on the statements, the NZ IAS1 gives a choice for companies to select presentation of go by function or by nature. The NZ IAS1 also requires inclusion of primary statements that show changes in equity. This can be due to changes arising other than from transactions with equity shareholders acting in their capacity and all changes in equity or SOCIE. With regard