Financial accounting and reporting theory.
Description You are required to complete a report which evaluates, by reference to the financial statements of a public company, how that company has complied with a specific International Financial Reporting Standard of your choice. *THE COMPANY CHOSEN IS ‘NEXT’ AND THE ACCOUNTING STANDARD IS INTANGIBLE ASSETS (IAS38) (REALLY IMPORTANT!) By reference to the latest published accounts of your chosen company, discuss how compliance by your chosen company with your chosen International Accounting Standard affects any/all of the following; – The Statement of Profit or Loss and Other Comprehensive Income – The Statement of Financial Position – The Statement of Cash Flows You should consider: 1) How your chosen company has applied the provisions of the Accounting Standard and what effect this has had on the 3 financial statements above. It is permissible to focus on one of the primary statements above, if it is appropriate, remembering of course that the statements are interlinked. 2) Whether there are different options afforded by the Accounting standard, particularly relating to recognition and measurement, which could have resulted in any of the figures in your chosen company’s financial statements being reported materially differently, and, if so, what the potential impact of these would be. 3) Whether there are any aspects of your chosen Accounting standard which required your chosen company to exercise judgement in applying the provisions of the standard, and what the potential implications are for your chosen company’s financial statements of the way in which any judgement has been exercised.