Consolidated Financial Statements

Theory Aspect

The integrated reporting framework is used by an organization to enhance its reporting system to prevent defaults from entering the system to bypass security. The current reporting process should be strengthened by applying various methods to improve the existing working conditions of a unit. The main objective of this framework is to minimize potential errors within the internal system of the company. The repetition of operations is also reduced by when the methods of the integrated reporting framework are applied. The current guidelines used by by one entity will help improve the quality of information available to by providing honest and fair information to another.

In addition, IAS 26 provides information on pension plans which can be differentiated into two categories such as defined contribution plans and defined benefit plans. Therefore, it explicitly presents information on the recording, measurement and disclosure of pension plan information. Therefore, to be effective, accountants presenting must be aware of the rules and regulations associated with them (Bond, Govendir & Wells, 2016). Therefore, when examines all these aspects, it can be said that technical and conceptual knowledge is essential to manage standards more effectively and efficiently. In addition, the reporting and measurement aspects of pension plans are very different from one standard to another (McPhail, Macdonald & Ferguson, 2016). For example, UK GAAP has different regulations regarding the treatment of retirement benefits compared to IAS. Therefore, understanding and knowing the concept is essential in settling with retirement benefits and deferred tax amounts.

There are several key issues which are associated with financial reporting enumerated below:

• The reporting needs and requirements are covered in regulations that business entities are required to follow to ensure the transparency of the final accounts. However, sometimes a business organization cannot comply with all the rules to a large extent .
• In addition, a number of government agencies have developed and introduced Law which states that companies are not required to prepare financial statements in accordance with accounting standards. In addition, sometimes the instructions of the treasurer also impose the accounting standards that the company must follow in preparing the financial statements .

References

• Bond, D., Govendir, B. and Wells, P., 2016. An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136.Accounting & Finance.
• Florou, A., Kosi, U. and Pope, P.F., 2017. Are international accounting standards more credit relevant than domestic standards?.Accounting and Business Research.47(1). pp.1-29.
• McPhail, K., Macdonald, K. and Ferguson, J., 2016. Should the International Accounting Standards Board be responsible for human rights? .Accounting, Audit & Accountability Journal.29(4). pp.594-616.
• Warren, C. M., 2016. Impact of International Accounting Standards Board (IASB) / International Financial Reporting Standards 16 (IFRS 16).Property Management.34 (3).