Why is fair value emphasised in IFRS?

Effect of IFRS Emphasis on Financial Statements

BY

August ___ , 2007

TABLE OF CONTENTS

TITLE PAGE-------------------------------------------------------------------- ------------

TABLE OF CONTENTS -----------------------------------------------------------------

ABSTRACT---------------------------------------------------------------- ------------------

CHAPTER

I INTRODUCTION------------------------------------------------------------ -----

Overview of the Study-------------------------------------------------------------

Background of the Study----------------------------------------------------------

Problem Statement--------------------------------------------------------------- --

Purpose of the Study---------------------------------------------------------------

Significance of the Study----------------------------------------------------------

Research Questions ---------------------------------------------------------------

Conceptual /Theoretical Framework-------------------------------------------

Definition of Terms----------------------------------------------------------------- Assumptions------------------------------------------------------------- ------------

Scope and Delimitation-----------------------------------------------------------

Summary of Chapters and

Organisation-------------------------------------

II REVIEW OF RELATED LITERATURE ---------------------------------

Related Literature --------------------------------------------------------------

III RESEARCH DESIGN AND METHODOLOGY ------------------------

Methods of research ------------------------------------------------------------

Research Instrument -----------------------------------------------------------

Research Procedure ------------------------------------------------------------

IV PRESENTATION , ANALYSIS , AND

INTERPRETATION--------------------------------------------------- Presentation of the study -------------------------------------------------------

Part I ------------------------------------------------------------------------ -------

Part II ------------------------------------------------------------------------ ------

V SUMMARY , CONCLUSIONS AND

RECOMMENDATIONS----------------------------------------------

Summary of findings --------------------------------------------------------- Conclusions------------------------------------------------------------- -------- Recommendations--------------------------------------------------------- ---- ABSTRACT

Problem Statement

This study is aimed to determine the Effect of IFRS Emphasis on Financial

Statements . Specifically this study seeks to answer the following questions

Research Questions

The research questions are

Compare the use of IFRS Emphasis and Non IFRS Emphasis on Financial

Statement Presentations

There are many similarities between financial statements that prepared using IFRS and financial statements that are not prepared using International Financial Reporting Standards . Both the financial statements prepared using the International Financial Reporting Standards as well as the non IFRS based reports contains assets liabilities shareholders ' equity , revenues , expenses and profits Contrast the use of IFRS Emphasis and Non IFRS Emphasis on Financial

Statement Presentations

There are many differences between financial statements that prepared using IFRS and financial statements that are not prepared using IFRS . Further , IFRS financial statements use fair market value . IFRS reports are relevant , valid , consistent , material to aid investors to make better inform decisions

CHAPTER I

INTRODUCTION

Overview of the Study

This study is used to compare and contrast the use of the fair market values and other

valuation models in the presentation of financial accounting data . This study focuses

on the financial accounting data like the balance sheet , the income statement and

statement of cash flows . This study concentrates its main concern on the derivatives

market in compliance with International Financial Reporting Standards (Mattli , and

Buthe 2005

Background of the Study

There have been many opinions as to which valuation method will be used in the

preparation of financial accounting reports . Some companies prefer to the fair market

values in the preparing of financial accounting data . This study has been focuses on

comparing and contrasting the use of fair market values in to determine which is

more relevant , more reliable and preferable (Bloom 2004

Problem Statement

This study is aimed to determine the Effect of IFRS Emphasis on Financial

Statements . Specifically this study seeks to answer the following questions

Research Questions

The research questions are

Compare the use of IFRS Emphasis and Non IFRS Emphasis on Financial Statement Presentations Contrast the use of IFRS Emphasis and Non IFRS Emphasis on Financial

Statement Presentations

Purpose of the Study

The purpose of the study is to determine whether the use of fair market values in the

presentation of financial...