Integrated Reporting Framework Essay Example | Topics and Well Written Essays - 1000 words

Integrated Reporting Framework - Essay frameworkHowever, it was not until 1999 that the UK developed a framework which it described as Statement of Principles for pecuniary Reporting. both(prenominal) frameworks were based on work done in US, Canada and some other countries (Dyson 2007). Before that time the bases for pecuniary reporting were various rules and custom and standards which were mainly fire-fighting exercises (Dyson 200?). The USA, however, was much earlier in developing a abstract framework in the 1970s. This framework was also developed out of a number of crises all over the years which led to the creation of the Securities and Exchange Commission in the United States in 1934 under whose carriage the FASB falls. Subsequently, there have been additional crisis in the United States especially that which led to the Sarbanes Oxley Act 2002. This Act has displace down certain requirements for companies listed on the stock exchange. All these have one objective the protection of stakeholders, time minimising the differences in reporting by companies. The IFRS framework deals with the objectives of pecuniary statements, the qualitative characteristics that determine the usefulness of these statements, the definition, recognition and standard of the elements from which they are constructed, and the concepts of capital and capital maintenance (BPP 2009, p. 36). They form a common basis on which pecuniary statements are repared, thus creating a basis for discussion. These frameworks have provided guidelines in relation to disclosure of information, measurement, recognition and demonstration of financial statement components. This means that company executives have to abide by these guidelines if they want their auditors (assurance providers) to indicate that their financial statements show as true and fair view. This has helped to constrain the freedom of company executives. Harmonisation and converging projects at that place have been fre quent calls for harmonisation and this has borne some fruit with over 100 countries accepting the International Financial Reporting Standards (IFRS) with additional countries such as Canada being one of the most recent adoptees (Sungard 2011). According to PricewaterhouseCoopers (2011, p. 3) as a result of mergers and acquisitions through business dealings with non-US customers and vendors IFRS continue to affect US companies. This has led to the convergence project for a conceptual framework which is a joint project between the International method of accounting Standards display board (IASB) the preparers of IFRS and Financial Accounting Standards Board (FASB) the preparers of US GAAP. The objective of the project is to develop an improved conceptual framework as a basis for developing accounting standards in the future (Financial Accounting Standards Board n.d.). All these are aimed at making financial statements that have been produced in different countries more comparable. A dditionally, investors depart feel more secured and confident in the information provided in the statements. The Need for Integrated Reporting The frameworks provided by various accounting bodies though undergoing continuous revision have not been able to keep up with the pace of changes in the global environment. Investors and other stakeholders find themselves being short changed by insufficient disclosure, an unfitness to link the figures provided in the