Current Issues in Accounting and Corporate Governance Financial Repor

Question: Discuss about theCurrent Issues in Accounting and Corporate Governance for Financial Reporting. Answer: The Main Theme of the Reading The theme of the reading is to explore on the fair value as the measurement and the impact it has on the accounting policy choices (p.1). Additionally how these concepts are comparable to the financial statements in the adoption of the international Financial Reporting Standards (Cairns, Massoudi, Taplin Tarca, 2011). The concept of the fair value tends to capture on the inherent value of the conceptual framework. What was the Problems? The real collapse of ABC was not merely on business failure but a government policy failure. Another aspect issue was due to the ignorance of the fundamental sounds of accounting principles. At the end of 2006, the ABC Company was trading on the market share at around $8.60 and less than 2 years the shares were worth around 54 cents (p.2) and the company was placed in the hands of the administrators, there was issue of debt and a crisis of liquidity and inflated assets value (Cairns, Massoudi, Taplin Tarca, 2011). Moreover, the company relied on the increase stock price to help fund ceaseless expansion in USA and British market. They were vulnerable to share price collapse. What Have Learnt and Solutions to Issue of ABC Case The best solution on the issue is to have appropriate structure set by the government towards the management of the childcare policies; they should start playing the role of governance which can commensurate with financial significance(p.3). Moreover, organization need to maintain sound accounting practices and uphold on ethical responsibilities (Shortridge, Schroeder Wagoner, 2006). The advantage of guidance of accounting practice help organization to prepare and present financial statement while disadvantage is ignorance of management to follow the cumbersome process required on guideline. References Cairns, D., Massoudi, D., Taplin, R., Tarca, A. (2011). IFRS fair value measurement andaccounting policy choice in the United Kingdom and Australia. The British Accounting Review, 43(1), 1-21. Shortridge, R. T., Schroeder, A., Wagoner, E. (2006). Fair-Value Accounting. The CPA Journal, 76(4), 37.