Kevin Stevenson retires as AASB Chair Essay Example for Free

Kevin Stevenson retires as AASB chairman EssayThis media article is round the accomplishments and achievements of Kevin Stevenson regarding his privacy from Chairman of the Australian invoice Standards Board on 30th June 2014. (Media releases, 2014)While Kevin Stevenson was in his position, he imaged the massive traditions of monetary report was being supported both internationally and domestically and that counseling was depictd for the issues raised about FRC. (Media releases, 2014)Mr. Stevenson was the first to research, develop and create be Standards Advisory Forum which is dealt within International write up Standards Board. The AASBs Research Centre was established while Stevenson worked as the Asian-Oceanian Standard Setters Groups chair. His loss leadership instruction was mainly on the interest of the public. This was stated by Lynn Wood, FRCs chair and trustee of the IFRS Foundation. Ian Mackintosh, the former Chair of the PSASB of Australia and Deputy Ch air of IASB was in agreement with this statement. (Media releases, 2014)According to Mackintosh, Mr. Stevenson has largely contributed to have Asian countries to join IFRS, equivalent Nepal and Korea. From the beginning of the 1970s, Stevenson has put all his attention in setting principal based standards and developing a Conceptual Framework to be employ in fiscal reporting. Mr. Stevenson supported method of accountancy regulations as it was demonstrate by his organisation and also by Australian Accounting Research Foundation. He has also been official as a director of AARF while watching AARF grew with its development of regulations. He was a leader and was in the almost important position when setting the international pace to develop the common chronicle standards for both the public and the private sectors. (Media releases, 2014)Stevenson has contributed in the formation of the Public Sector Accounting. He took a epoch- do role in the establishment of International Fin ancial Reporting Standards in 2005 and this Standard has widely been used in Australia and the entire Europe. (Media releases, 2014)Concepts, ideas and factsThere be two important components that take to be satisfied to project bill services exhibiting high efficacy and quality. These be teamwork and leadership. Management models in news report services need to employ strategic human resource techniques to teams in method of report teams and leadership positions in order to provide high-quality services in the shortest time possible. The operation of accounting services operates under a clear and laconic manner and performs its measurement. Therefore, to provide the best accounting services and not get involved in dupery accounting, there needs to be an ultramodern investigation that uses scientific leadership when working as a team with major stakeholders (Topic 2, 2014).Stevenson was leading in the right direction by using new techniques in accounting. These techniques o f accounting were important steps which need leaders with efficient skills to apply apprehensions like efficacy, cost pull ahead analysis, economies of scale and cost-effectiveness analysis that will progressively measure improvement.To resolve a core issue of the physical composition and get a skilled solution, it is important to acquire efficient leadership. Strategic leadership in accounting provides quality and up to date accounting services to an organization. Leadership like that of Stevenson, brings together all of the uncomplete system consisting of thousands of accountants working within a fragmented system of organizations. (Topic 7, 2014)Advanced fraud investigation is genuine through effective teamwork and leadership in accounting. Leaders decisions are encouraged to be make by considering social and moral implications so it will have a positive effect on the shareholders and customers of the organization, such(prenominal) as the leadership of Stevensons. (Topic 7, 2014) all(prenominal) employee bears an ethical responsibility to act in an ethical manner and get through sure that their comp all(prenominal) does is revenue enhancement compliant and allows reasonable deductions. Employees should ensure that the company appropriately allocates the importance of the business concern activities.The Accounting IssueThe best way to improve the truthfulness in accounting and monetary reporting is by ensuring that ethical standards are used through efficient manners of reporting, sufficient fiscal management and a strong system of governance. Maintaining a right to the truth is an ethical entrust in pecuniary reporting and accounting.Both the clients and stakeholders of an organization have the right to information that is true and accurate when do any investment discussions. It is the legal obligation of any accountant to provide services that are professional and competent and this should be done within their required skills.It is a common argument that a large count of accountants do not have the ability to recognize and solve ethical dilemmas in an ethical manner. This has made it necessary to incorporate ethics education as a key element in the accounting profession. Early initiation of the inclusion of professional values and ethics should be emphasized in the accounting profession.Major issue of the articleStevenson clearly shows that ethical management and taking responsibility to act in the best interest of the company that they are providing accounting services for, relates with providing accurate and truthful records. This beneficial not only when to the organization, but also to the society in general (Media releases, 2014)Management should be ethical by being honest, accurate and complete when dealing with financial data and have ethics held in place. Every employee bears the responsibility to make decisions that are wise and up to date for the future well-being of the company. The accounting standards a re useful in financial reporting and accounting as they are critically examined when processed. (Topic 2 , 2014)In order to uphold the highest code of ethics, organizations should emphasize on the major functions because shareholders and customers often make their decisions based on financial and accounting reports. Mr. Stevensons case is a clear demonstration of the importance of legal and ethical factors in accounting and financial reporting. It is through these two issues that Mr. Stevenson was able to establish effective departments of accounting and financial reporting and design specific rules that govern general functioning of any company.Relevant topics and theoriesPositive Accounting Theory plans for the future and gives information of what is currently not known. Financial reporting has its history with Positive Accounting Theory applied. It has focused its major interest on various aspects of accounting techniques which has provided an informative background with in depth details of the functionality of accounting in financial reporting (Topic 2, 2014)The application of financial reporting and accounting is concerned with all the future business of a company that relates to any economic unit. There are four main ethical elements involved in accounting and financial reporting. These elements are truthfulness, objectivity, autonomy and competency and they require employees in the accounting and financial reporting profession to act independently towards the clients to whom they offer their services. They should ensure that their desire to attain better living and to acquire more wealth should not be an breastwork to their financial responsibilities.Obligations of ethics greatly affect the decisions of accounting and financial reporting. Also helps solving unfair situations that may alter information symmetry. (Topic 2, 2014) The decision by Nepal and Korea to join the IFRS was based on the financial guidelines that govern accounting and financial re porting.Every employee in the accounting and financial reporting profession, whether in a private or public company bears an ethical responsibility to act in a manner that is loyal and ingenuous to his or her obligation when reviewing both the financial or individual reports of an organization. It is quite normal for accountants and financial reporters to view possible ethical violations when working. As a result, one should maintain carefulness and desist from manipulation of financial records as this is a violation of ethical guidelines.The important elements of normative accounting theory are the right and being open to public scrutiny. For some companies to maintain certain public image they may find pressure from management. Most companies in the public sector are faced with the pressure to be seen as highly successful. Consequently, it becomes an ethical concern for the company to maintain ethical reports of the company assets because the pressure from management could cr ack them to resist the temptation (Topic 2, 2014).Management should not manipulate the companys financial records and alter the figures in an effort to create an image that falsely portrays the company as successful. This is often temporary because it only portrays the successfulness of the company on a short term basis before the fraud is detected by the Securities and Exchange Commission (Topic 2 , 2014). Such manipulation, which is often based on poor decision making skills aims at putting up a false image of the financial status of the company and only has negative effects on the well-being of the company. Accounting professional should by all inwardness curve such practices. Despite the temptation associated with manipulating financial records, management should act as the last defense slit against accounting fraud.For these reasons, accounting theories assert that companies should maintain their ethical vigilance in order to avoid any potential breach of conduct (Callahan, 2014). Every individual engaging in any activity relating to financial reporting and accounting should uphold the highest standards of ethical behavior. It is through these standards that guidelines and rules are set to guide employees in playacting their professional responsibilities.Question 2In comment letter 1, the Financial Reporting Committee of the IMA wrote this letter to express its opinion on financial accounting standards, to simply the income statement presentation by eliminating the concept of extraordinary items. The FRC is in charge of several accounting books of different companies. This basically means that FRC has the responsibility of making timely receptions to statements, pronouncements, research legislation, proposals and pending legislation. Their main concern in this comment letter is the complexion of financial statements within FASB. They support the simplified financial statements adopted by the board which is easier for common people to watch CITATION Sch l 1033 (Schroder, 2014). Their support is on the elimination of very singular items as in most times this criterion is not satisfied.Their proposal to simplify the income statement gets rid of the tedious work in the preparation of financial documents. Their support is based on the fact that the allocation of time in preparing income tax reduces to a great extend by eliminating the occurrence of other income items. They thus advocate for a consummate(a) examination of the details of this conjure uped proposal CITATION Sch l 1033 (Schroder, 2014).In comment letter number 2, Marcum Accountants and Advisors deliver to the FASB to simplify the income statement by eliminating the concept of extraordinary items regarding the proposed accounting standards. Their letter is generally a response to several questions regarding the process of simplification of the income statement. They support the concept of elimination of extra ordinary items from the General Accounting principles. Th eir argument is based on where the extra ordinary items make the application difficult in accounting practice CITATION Giu14 l 1033 (Giugliano, 2014). They thus support the application for extra ordinary items in old accounting periods. A sudden change of the rules would otherwise lead to confusion in the accounting practice CITATION Top14 l 1033 (Topic 2 , 2014). The ease of application with the proposed update makes it easy to make these recommended changes to adopt. They thus suggest the immediate adoption of the proposed update.They agree with the decision made by the board which was to comply with the principle of carve up disclosure of infrequent transactions. They also suggest the importance of offering guidance on deciding the unusual item. CITATION Giu14 l 1033 (Giugliano, 2014) Proper definitions should be provided of the unusually occurring items.In comment letter 3, Ford labour Company also writes supporting the simplification of financial report assessed and initiate d by FASB. Their agreement is based on the reasonable evaluation, identification and improvement of the generally accepted accounting principles CITATION Cal14 l 1033 (Callahan, 2014). This thus means that by reducing the complexity and simplifying the income statement, it will possibly reduce the cost of application. They are also in agreement with the board that such an update would not lead to data loss. The overall benefit would be to the end users of such financial statements.ReferencesCallahan, S. (2014). stimulation Letter No. 6 (1st ed.). FORD MOTOR COMPANY. Retrieved from http//www.fasb.org/jsp/FASB/CommentLetter_C/CommentLetterPagecid=1218220137090project_id=2014-220Callahan, S. (2014). Comment Letter No. 6 (1st ed.). FORD MOTOR COMPANY. Retrieved from http//www.fasb.org/jsp/FASB/CommentLetter_C/CommentLetterPagecid=1218220137090project_id=2014-220Giugliano, G. (2014). Comment Letter No. 5 (1st ed.). MARCUM LLP. Retrieved from http//www.fasb.org/jsp/FASB/CommentLetter_C/C ommentLetterPagecid=1218220137090project_id=2014-220Media releases,. (2014). Kevin Stevenson retires as AASB Chair.Proposed Accounting Standards Update. (2014) (1st ed.). Retrieved from http//www.fasb.orgSchroeder, N. (2014). Comment Letter No.2 (1st ed.). IMA/FRC. Retrieved from http//www.fasb.org/jsp/FASB/CommentLetter_C/CommentLetterPagecid=1218220137090project_id=2014-220Topic 2 The role of ethics in accounting. (2014).Topic 6 International Accounting. (2014).Topic 7 Normative Accounting theories. (2014).Source document