“It is difficult to overstate the importance of high quality financial reporting standards to the world economy. If money makes the world go round, then the system can only function when people understand how that money is being used and managed.
Market-based economies are built on financial exchanges between providers and consumers of capital. The system only works when trust exists between investors and the people they entrust their money to. IFRS Standards help create that trust by providing investors with confidence in the quality, the robustness and the completeness of the financial information provided by companies.”
- Define and explain what ‘IFRS Standards’ are with reference to supporting academic references.
- Identify and explain who sets IFRS Standards, with reference to supporting academic references.
- Describe and explain how IFRS Standards ‘help create trust’ using supporting academic references.
- Critically evaluate whether investors are given ‘confidence’ by the existence and implementation of IFRS standards with reference to academic sources.
- Critically analyse and conclude on whether or not IFRS Standards improve the ‘quality, robustness and the completeness of the financial information provided by companies.’ Please use relevant academic references.