Advanced financial accounting Essay Example | Topics and Well Written Essays - 4000 words

Advanced financial accounting - Essay ExampleThe intention of clear value of in the UKs Financial Reporting Standards appears to take the position of the US Academics which is conservative in character. This is supported by the statement of The Association of leased Certified Accountants (ACCA) which stated that the UKs Accounting Standards Board (ASB) has put itself in a potentially serious conflict with the International Accounting Standards Board over the use of fair value.1ACCA reported the response the IASBs discussion paper Fair Value Measurements, where the ASB made clear it rejection of much of the underlying rationale of the IASB papers proposals. The ASB seemed to have asserted that the use of the US approach to fair value was not appropriate in Europe. While the US standard SFAS 1572 could useful as a methodology to know market-based faint prices, as admitted by the ASB, the UK board is not fully convince that the assumption that fair value3 should necessarily be equat ed with exit value.4 ASB does not also accept to have a one size fits all approach to fair valuation as it suggested instead standard by standard basis. It also criticized the statement that fair value should always be assessed from the perspective of a market participant, rather than the entity as it asserted more puffiness to be given that would address the importance of entity-specific measures.5Given the position taken by the ASB in its statement or comment concerning the fair value accounting, it is suspicious if UK will recognize the importance of fair values, with reference to international accounting standards the same way that IASB is giving the same issue in accounting.2.2 Describes the alternative methods by which assets and liabilities could be measured, and critically assesses the performance of each method against the Qualitative Characteristics of financial information described in the ASBs Statement of Principles (the Conceptual Framework).The