每日一练P2（UK） 答案回复可见
<p>4 Increasingly the accounting standards adopted in the United Kingdom are not being developed by the Accounting<br/>Standards Board (ASB) but are developed by the International Accounting Standards Board (IASB) and incorporated<br/>into UK Generally Accepted Accounting Practice (UK GAAP). Accounting Standards published recently have been<br/>closely aligned to International Financial Reporting Standards (IFRSs). The role of the ASB has changed from<br/>developing UK GAAP to implementing IFRSs.<br/>Required:<br/>(a) Explain whether consistency between UK GAAP and IFRS is important. (7 marks)<br/>(b) Discuss whether the alignment of recent Financial Reporting Standards (FRSs) to IFRS has led to greater<br/>inconsistency between financial statements. (10 marks)<br/>(c) Discuss how management judgement and the regulatory framework can have a significant impact on the<br/>confidence placed in financial statements. (6 marks)<br/>Appropriateness and quality of discussion (2 marks)<br/>(25 marks)</p><p></p><p>4 (a) Consistency between UK standards and IFRS is important for the following reasons:<br/>– it enhances the credibility and clarity of financial reporting in the UK.<br/>– there are companies who continue to prepare financial statements under UK standards and wish to ensure that they are<br/>consistent with IFRS so as to avoid a two tier system of reporting.<br/>– it will facilitate the movement of accountants between organisations using either UK GAAP or IFRS and lower barriers<br/>to the free-movement of accountants in business across jurisdictions.<br/>– it helps to ensure the comparability of financial statements whatever the size of the company.<br/>– it allows companies to enjoy a lower cost of capital as a result of their financial statements being more readily<br/>understood.<br/>The development of IFRS has led to a change in the role of the ASB in terms of its importance in the development of UK<br/>accounting standards. UK GAAP mostly applies to private companies, subsidiaries of listed companies and Small and Medium<br/>Entities (SMEs). Consistency with IFRS is important as long as the standards are not over engineered and too complex. If this<br/>occurs then they will not be fit for purpose for the UK entities that they are aimed at.<br/>(b) The implementation of International Financial Reporting Standards (IFRS) in the UK involves major change for companies as<br/>IFRS introduces significant changes in accounting practices that often were not formerly required by UK GAAP. For example<br/>financial instruments in many instances have appeared on the balance sheets of companies for the first time. As a result,<br/>financial statements are often significantly more complex than financial statements which were based on UK GAAP. This<br/>complexity is caused by the more extensive recognition and measurement rules and a greater number of disclosure<br/>requirements. Because of this complexity, it can be difficult for users of financial statements to understand and interpret them,<br/>and thus can lead to inconsistency of interpretation of those financial statements.<br/>For example the implementation of the financial instruments standards (FRS25 ‘Financial Instruments – disclosure and<br/>presentation’, and FRS26 ‘Financial Instruments: recognition and measurement’) has led to many changes in UK accounting.<br/>The reclassification as liabilities of minority interests holding put options, split accounting for convertible bonds, revaluation<br/>of ‘available-for-sale’ investments at fair value recognised directly in equity and revaluation at fair value of all derivatives,<br/>including embedded derivatives, with the impact of the change recognised directly in equity for cash flow hedges are some<br/>of the changes and complexities that IFRSs incorporated into UK GAAP have introduced.<br/>Often IFRSs introduced into UK GAAP are silent on certain issues and involve significant estimation. For example FRS20,<br/>‘Share based payment’, does not require any specific disclosures as to the choice of the appropriate valuation model or how<br/>the number of equity settled awards, which will vest, have been estimated. FRS20 does require ‘information that enables<br/>users to understand how the fair value of the equity instruments granted was determined’ but the level of detail is left up to<br/>the company. The most popular model used by companies under this standard is the Black–Scholes–Merton method but this<br/>model does not allow for the possibility of exercise before the end of the option’s life. However irrespective of this, many</p><p>companies use it.<br/>It is possible to interpret some of the IFRS introduced in different ways and in some standards, there is insufficient guidance.<br/>The identification of the functional currency under FRS23, ‘The effects of changes in foreign exchange rates’, can be<br/>subjective. For example the functional currency can be determined by the currency in which the commodities a company<br/>produces are commonly traded, or the currency which influences its operating costs, and both can be different.<br/>Another potential problem surrounds the adoption of standards. Some of the new IFRSs have an adoption date of 1 January<br/>2009 and if these are adopted in the UK, there could be inconsistency if companies adopt the standards early. The application<br/>of FRS25 and FRS26 was quite complex in terms of which entities were required to adopt the standards and when adoption<br/>should take place. Some companies adopted the standards early and some companies did not. The main changes brought<br/>about by the gradual adoption of IFRS, will relate to recognition and measurement rather than the form and presentation of<br/>financial statements.<br/>(c) Management judgement may have a significant impact under UK GAAP. FRS utilises fair values extensively. Management<br/>have to use their judgement in selecting valuation methods and formulating assumptions when dealing with such areas as<br/>onerous contracts, share-based payments, pensions, intangible assets acquired in business combinations and impairment of<br/>assets. Differences in methods or assumptions can have a major impact on amounts recognised in financial statements.<br/>In addition to the FRS, a sound financial reporting infrastructure is required. This implies effective corporate governance<br/>practices, high quality auditing standards and practices, and an effective enforcement or oversight mechanism. Therefore,<br/>consistency and comparability of financial statements will also depend on the robust nature of the other elements of the<br/>financial reporting infrastructure.<br/>The Financial Reporting Council has developed a ‘Strategic Framework’ in the UK which is designed to provide confidence in<br/>corporate reporting in the UK. The aim is to facilitate co-operation between stakeholders in order to promote confidence in<br/>corporate reporting. Confidence is gained where there is<br/>(a) an effective legislative and regulatory framework which defines high standards in corporate governance and reporting,<br/>including standards and guidance from the Government, the FRC, and professional bodies<br/>(b) implementation of the framework by those responsible for governance which includes boards, auditors and the<br/>profession<br/>(c) effective monitoring of the quality and integrity of reporting and governance by shareholders, audit committees,<br/>regulatory authorities, and professional bodies<br/>A poor regulatory framework would undermine confidence in corporate reporting and governance.</p>页:
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