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1. The CEO has forwarded to you an interesting article and requires you to provide her with a deeper theoretical understanding of the issues discussed so that she can fully engage in the lively discourse at an upcoming conference.
You are required to find a newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been published after the 1st of June 2018. Your article could also come from one of the professional journals. The article should not come from an academic journal. Academic journals generally do not contain news articles or articles of less than one page and are usually only published 2 or 4 times a year. Your article should also relate to a different issue to what you will be investigating in Question 2 (in other words, don't use an article about the exposure draft you will be using in question 2). If you are having a problem ensuring that your article is from an appropriate source contact your subject coordinator.
You then need to explain the article that you have found in your own words and clearly relate the concepts, ideas and facts within the article to one or more of the theories or topics that you have studied this session. Support your analysis of the assumptions and implications of the topic or theory as appropriate with reference to sources in APA 6 style. For example, this article from the Sydney Morning Herald in April 2016 could be linked to the topics of accounting regulation and measurement (and perhaps others). You must provide a copy of the article or web page, with details of the source, date and page number with your answer.

2. The Senior Partner of the firm you work for has appointed you to a new role. It is now your responsibility to review upcoming accounting standards and provide a report to the partners on the proposed standard and the opinions of other industry players on the changes.
Firstly, you are required to find a current exposure draft or proposal for a new accounting standard which has been opened for public comments. (These can be found on the websites of most standard-setting organisations, such as the IASB, AASB and FASB.

ESMA's 22nd Enforcement Decision Account

The piece 22nd enforcement decision account declared by The “European Securities and Markets Authority-ESMA” dated on April 20th 2018 are considered for the current study. This piece of writing basically represents extracted information from private evidence of enforcement pronouncement. Inherently, it can be mentioned that the current batch manages definite decisions in relation to different regulations as well as directives that is to say, IFRIC 17, IAS 3, IAS 38, IFRS 5, IAS 29, IAS 8/IAS 21/IAS 29 and IAS 7 among many others (ESMA publishes 22nd enforcement decisions report, 2018). Evaluation of account of enforcement decision indicates towards appropriate monitoring and assessment of financial assertions by the state enforcers of Europe. According to directives stipulated under International Financial Reporting Standards (abbreviated as IFRS) there is requirement for compliance with requisite necessities of reporting including significant national regulation that need to be evaluated (Anderson et al., 2016).

The piece of writing under deliberation reflects that national enforcers (specifically, enforcers of Europe) of pecuniary assertions analyse and scrutinize financial announcement on a daily basis (ESMA publishes 22nd enforcement decisions report, 2018). In essence, these pecuniary assertions are principally pronounced by distinct issuers possessing securities that are dealt in a Europe. Additionally, the persons who devise, arrange and present pecuniary assertions by acting in accordance with the directives of International Financial Reporting Standards (also referred to as IFRS) also pronounce the assertions (Callen, 2015). By the way, enforcers also have the need to scrutinize compliance with pecuniary assertions to obligatory decree (distinctively, IFRS along with other state system and guiding standards) that are executed.

As correctly by Cipriano (2016), ESMA has necessarily devised a classified foundation of data for distinctive enforcement decisions undertaken by individual European enforcers. In essence, this can promote appropriate execution of regulations of IFRS. In essence, the assertion of enforcement decisions is necessarily formulated for informing different partakers of market on the subject of treatment of accounting that different enforcers of Europe can consider. Examination of the account on enforcement decision declared by ESMA indicates that ESMA consider declaration of specific enforcement decisions together with justification behind the same. In effect, this necessarily contribute towards dependable functioning of set of laws of IFRS in specifically the EU.

Comprehensive evaluation of the specified article also points out towards the fact that there are diverse matters that are necessarily unearthed under the present batch (ESMA publishes 22nd enforcement decisions report, 2018). This necessarily covers the definite period (this indicates towards beginning of August of financial year 2016 till the period of July of 2017).  Successively, there are diverse topics that are illustrated in this segment and hereby mentioned below successively.

According to given article the directives and guidelines of IFRS throws light on “Non-Current Assets” specially held with the intention of sale. In this regard, it can be said that discounted function can also be kept in mind particularly under labelling of asset (acceptably not to be marketed within around one year phase).  By and large, this lets estimate of assets and specifically clearance group that are possessed with the intention of selling but are not essentially depreciated. Collis et al. 2017) affirms that this particular facet is enumerated at the low range quantity of carrying and takes into account deduction of cost from fair value of particular market. In essence, this is mentioned separately in the assertion for analysis of financial position of the business concern.  In essence, this part of the given article also mentions about vital disclosures that are necessary for diverse discontinued roles along with authorization of non-current assets.  Furthermore, this specific article also highlights directives of the regulations stipulated under IAS 7 (ESMA publishes 22nd enforcement decisions report, 2018). In this regard, this standard points out towards announcement of stream of cash and elucidates the same in this decree (Conner, 2016). Also, this standard considers appropriate disclosure of controlled balance of cash. In effect, according to this specific standard it is vital for a business concern to set up and present accounts on streams or flows of cash and consider it as an essential division of the most important financial assertions. In particular, streams of cash are necessarily classified and all together mentioned into diverse operating activities. Thereafter, the decrees illustrated under the directives IAS 32 that is on the topic of “financial instruments” are illustrated thoroughly in the provided article under reflection. Essentially, the article at hand points out the manner in which IAS 32 takes account of perpetual notes tagged as liabilities. Basically, this regulation outlines and plans the necessities of accounting for suitable staging of diverse finance instruments (De Villiers et al., 2017). Particularly, this sequentially can assist in undertaking classification of an assortment of instruments into financial assets otherwise liabilities in conjunction with equity instruments. In addition to this, this regulation also mentions about decrees and direction that are indispensable for suitable cataloguing of related interests, dividends of firms together with gains or losses (Doxey et al., 2015).

Analysis of the Article

Moving further, this study also emphasizes the regulation of IAS 1 that talks about directives for arrangement of financial assertions of corporations (ESMA publishes 22nd enforcement decisions report, 2018). In essence, this particular standard at hand talks about detailed necessities for principally financial declarations, taking into account the manner in which the same needs to be framed. Moreover, this regulation of (IAS 1) also put it to users the least necessities for effectively their content and also varied overriding themes to all intents and purposes (for instance going concern theme, accrual basis of accounting with correct difference between both current as well as non-current factors (Draft, 2015).  By itself, this specific directive of IAS 1 presented in the article under consideration requires comprehensive presentation of pecuniary assertion. This is necessary to put forward definite economic position, declaration of profit else wise loss situations and detailed illustrations of different comprehensive income, announcement of changes in equity of the firm along with account of cash flow (Ferri & Li, 2016)

Also, the article under reflection also draws attention to standard of IAS 36 that explains about accounting treatment for asset impairment. In actual fact, this assists in presentation of revelations of suppositions relating to various commodity prices in quantitative form that possess huge risk of principally material modifications to particularly carrying amount (Glöckner, 2016). In effect, this specific standard has the intention to ascertain that assets/resources of corporations are not necessarily carried at a particular amount that is added to specifically recoverable amount. Nevertheless, except for goodwill and some other intangible resources of business enterprises for which impairment test is indispensable every year, enterprises necessarily need to carry out scrutiny on impairment when there is hint of impairment of firm’s any particular asset (ESMA publishes 22nd enforcement decisions report, 2018). Basically, this scrutiny can be undertaken for diverse cash generating nodes principally where a particular asset falls short to create inner streams of cash ().

Added to this, the piece of writing also clarifies carefully on matters of diverse laws and conventions on business combinations (as per stipulations of IFRS 3), appropriate account of fair value (as per guidelines of IFRS 13) as well as intangible resources (as per guidelines of IAS  38). In addition, this section also makes clear IFRIC expounding circulation of non-cash resources to varied possessors. In this way, IFRIC gives explanation in comprehensive manner regarding demerger along with sharing to principally shareholders of diverse issuers (Gornik-Tomaszewski & Choi, 2018). Moreover, the study at hand also specifies about the ruling of IAS 1 (mentions about different commands as regards presentation of pecuniary declarations) and elucidates in detail on the subject of presentation of reassessment of losses of firms assets executed in functional activities (ESMA publishes 22nd enforcement decisions report, 2018).  Furthermore, the decree IAS 10 representing guidelines and rules on consolidations of firm’s pronouncements of corporations is mentioned exhaustively in the piece. Basically, this necessarily point towards gaining power over different investee subsequent to staging and offering of tenders. Besides this, the study also considers IAS 8 indicating explicitly stratagem of essentially accounting along with differences in formats and plans of accounting. Effectively, the standard also states about deduction and implication systems and inaccuracies that include crumpling of course of action followed for exchanging overseas currencies in cooperation with hyperinflation in reality (Henderson et al., 2015). Therefore, the current piece of writing takes into consideration certain directives and sets specific criteria for selecting and altering approximations and clarifies the rectification of acknowledged errors of the previous period. However, this standard for accounting entails compliance to decrees of International Financial Reporting Standards-IFRS that are essentially germane to definite business circumstances. Thereafter, IAS 21, signifying influences of modification in specific rates of essentially foreign exchange-“FOREX” and IAS 29 (coverage of hyperinflation economies) are elucidated thoroughly. Particularly, IAS 38 that replicates instructions for handling and management of varied intangible assets helps in understanding system of amortisation of rights for different content used in programs that television as well as films air

Topics Covered in the Article

The proposal deals with the section that refers to the accounting regulations that are suggested and updates and standards on compensation of invoice  that shows the topic no. 718 (Suggested Standards of Accounting Updated on Stock Compensation (Topic 718):  The advancement  of  Share-Based Payment of Nonemployee Accounting, 2017). This particular accounting standard of accounting includes accounting system improvements for the payments that are share based to the various non-employees. Essentially, it can be notified here that guidelines for improvement assured herein is mandatory for reducing the overall cost and related complexity linked with development and maintenance of data efficiencies  that are stated by the financial statements.

The discussion takes in hand four respondents from various remarks made to the proposals and makes collection of the same specifically from the authorized accounting board websites  under consideration (Suggested Standards of Accounting Updated on Stock Compensation (Topic 718):  The advancement  of   Share-Based Payment of Nonemployee Accounting of the year 2017).  With the help of the analytical view of the comments from the various respondents can have a effect on the examination standards of accounting and help in the understanding the challenges that are reflected. Additionally, the motive is also to comprehend properly the execution process of accounting guidelines that can improve accounting standards. Moreover, the study also has the objective to examine the various comments that involves both agreement and disagreement comments. The various comments statements on the exposure draft can enhance the process of coming into a specific result of the evaluation of accuracy of regulation of accounting (Hoyle et al., 2015).

The present section explains in aspect of the procedure accounting of payments of non-employee share. In essence, the mentioned proposal can be essential for the sentiments, emotions and opinions of diversified non-employees of business. As mentioned by Jaggi et al. (2016), a strong association and bond between businesses and their workforces can aid in the enhancement process of business environment that is positive.  As a result, it can be mentioned that various types of processes of payment development can be said to be vital.
Essentially, the standard of accounting shows various kinds of ideas with thorough information and impacts the businesses from various industries and sections. This also impacts businesses to connect with the method of putting their opinions. With the help of this, it can be said that necessary response can be obtained on the offered improvement proposals of regulations and standards. In due course, public interests can be satisfied additionally in a more efficient way. Fundamentally, the queries regarding transformations matters are also mentioned in the Financial Accounting Standards Board. It can be seen as a management accountability of businesses to reply and send an answer to the questions represented in  the forms of exposure draft and converse about the disagreement. The agreement and the disagreement hence aids in understanding the acceptance and suitability of the proposals that are given to the regulations enforcers (Jarva & Silvola, 2017). This refers to (Suggested Standards of Accounting Updated on Stock Compensation (Topic 718) talking about advancement of   Share-Based Payment arrangement for Nonemployee). In addition to this, various questions shown in the form of the exposure draft and answers presented as feedback of different business enterprises essentially can help in serving public interest (Proposed Accounting Standards Update—Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, 2017). Therefore, it can be said that the questions undoubtedly need to be answered in public interest.

IFRS and Non-Current Assets

It is delineated in insight with respect to the feedback gathered from various respondents. The inputs are considered in detail for acquiring of knowledge regarding acceptance and disagreement regarding the changes proposed in the exposure draft (Michelon et al., 2016). Naturally, the changes that are proposed from differing respondents are therefore clarified illustratively are therefore said below:

Visa is renowned business that has wide range of operations in the territory of advanced and modern online payment technology. This organization has the aim to set up enhanced payment strategy all through the world through steady innovative work towards improvement of new, enhanced and trend setting technologies. In this association, it be said that the administration of this firm shows their concern in the form of comments with respect to the said proposition by FASB and recommend certain things for development. Examination of the comment introduced by this firm uncovers the organization responds to various questions said in this exposure draft (Raffournier, 2017). Additionally, this organization additionally appropriately says about their consent to the recommendations and proposals set forward by the FASB which is the regulation authority, contradicting diverse recommendations of supplementary points of interest of taxation and inadequacies of assertions of earnings. Examination of their comment uncovers the way that the administration of the organization keeps full confidence, trust and faith in the recommendations displayed by the FASB. Administration of the organization considers that this particular proposition for development can help the process of operations improvement of the business by way of reducing of the hurdles that holds back the businesses effective operations (Ratcliff et al., 2016). Further, it is said that this proposal enhance the development of augmentation of cost volatility related to income tax

The business organization engages in the operations of auditing and accounting in Australia and reports to various queries for various accounting directives. Their feedback analysis in the way of comment represents that they approve the termination system and closing PIC pool for the purpose of accounting (Proposed Accounting Standards Update—Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, 2017).  Specifically, they reduce the enterprises expenditure along with intricacies that are related to accounting system. Additionally, this enterprise also approves to various costs for the specific pay system and implementation of the same in the company’s earnings declaration (Rebele & Pierre, 2015). This would benefit the systems of tax as the deficiencies can be considered to be vital and have the need implemented properly. Additionally, the business is also aware that there is a need to limit the total delays in the identification process of surplus tax advantage.

Raytheon Company is a renowned USA based business venture that functions in the region of development, progressed technological applications and technologically induced offerings like the defence, security equipments and tools, civil market  software Globally. It can be observed from the comments that the company responds to second, third and fifth question in the exposure draft. The organization has presented viewpoint that is opposite in the context of the systems and processes suggested for the standard of the benefits of tax in terms of inadequacy of tax stated in income statement.  On the other hand, the management of also highlights the fact that the FASB has the requirement to follow a particular framework (Schaltegger & Burritt, 2017). In this way, the various benefits and limitations and dearth of supplementary taxation are revealed especially in equity of the firm.

Disclosure of Controlled Balance of Cash

Corporation Name: American Bankers Association
This business operates in banking segment in USA. The business approves the changes that the authority FASB has proposed in the context of share based arrangement of payment. In addition to this, the business reacts to various questions and contradicts and comments only to a particular question in the exposure draft.

The proposal under reflection can be considered to be extremely important particularly in this subject area of share based arrangement of payment for different employees. In essence, this scheme of accounting and the involved procedure can help in augmentation of remuneration of executives based on shares. In effect, the obligatory proposal is mainly for improvement of varied pecuniary suppositions and also for reduction of work stress of specialized accounting professionals. For this reason, the theme of “Public interest” can be referred to in this present context and a financial outlook can be attached to mainly welfare. This can provide theoretical validation for the defined guidelines and can be considered as an efficient premise in this perspective (Tsalavoutas, 2017).


The Critical assessment and analysis of the present proposal as presented by the FASB in context to the scheme of share based payment accounting of the employee improvises the technique of understanding the fact that states that one all other respondents are in supports of the changes in the proposal regarding the recognition of profit advantages and disadvantages tax in declaration of income. In addition to this, the different proposals have also been allowed by various respondents, but, the current one is not taken in hand as it may produce fluctuations of cost in the income statement. Hence, recommendation can be made that in this field, developments can augment the state of affairs that are related to accounting system development of payment that is based on stock.


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Callen, J. L. (2015). A selective critical review of financial accounting research. Critical Perspectives on Accounting, 26, 157-167.

Cipriano, M. (2016). Bad Will: Why the FASB's Proposed Fix of Goodwill Accounting Will Not Fix the Goodwill Problem. Journal of Corporate Accounting & Finance, 27(6), 89-92.

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