Importance of Accountability and Prudence to IASB Conceptual Framework
There are crucial areas that are not there from the ideas to prepare and present financial statements as per the findings of ACCA which is the body of Association of Chartered Certified Accountants as it responded to the IASB‘s consultative Financial Reporting framework. The global forum for ACCA in reporting for corporations came up with an extensive feedback to the consultation of IASB. They went on to say that the accountability and prudence concept require addressing and explaining in this framework.
The framework is significant because it assists the IASB to make preparations, development and the revision of IFRS in a consistent and coherent manner. This body embraces the measurement proposals and the choice between various measures like market and cost values as going way too far in offering suitable guidance.
Nevertheless, in another area of interest, the constituent of profit for the financial year and what needs to be termed as other broad income, there is a lot of work that needs to be worked on in order to have definitions and principles developed. There are more gaps in the framework where there are no principles or even concepts are included. These include areas such as disclosures, non recognition and also unit of account issue.
It is observed that there are insufficient situations whereby crucial aspects that set the accounting standards cannot be found. There is also a need of a rational definition of the liabilities which brings close the liabilities which are conditional, those that are constructive and what implies on the compulsion of the economy.
Integrated reporting has been introduced by the ACCA body being the first in the various accountancy bodies. The students are now expected to pass on integrated reporting in the accountancy profession for once from December 2014. This body is continuing to enhance the syllabus frequently in order to guarantee that members of ACCA are adhering to good practices. This is to ensure that its members are completely financial professionals who are geared with relevant skills for working in any sector. There are several resources such as research papers and webinars developed for informing members on how to implement and adopt the IR.