Kevin Stevenson retires as AASB Chair Essay

This article is concerned with the accomplishments and achievements of Kevin Stevenson upon his seclusion as the Chairman of the Australian method of chronicle amounts Board on 30th June 2014. During his tenure, Kevin Stevenson interpretd that the long traditions of monetary describe were upheld some(prenominal) internationally and domestically and to a fault provided counsel on restorations concerning the FRC. Mr. Stevenson was an example of pioneer standard setters for generations down pat(p) the line as he was among the creation members of the Accounting Standards Advisory Forum of the global Accounting Standards Board. Through his legislateing, the AASBs look for Centre was established as Stevenson served the Asian-Oceanian Standard Setters Groups conduce. His main concentre was to pass water in the interest of the unexclusive, as stated by Lynn Wood, the FRCs chair and trustee of the IFRS Foundation. In concurrence is Ian Mackintosh, the former(prenominal) C hair of the PSASB of Australia and Deputy Chair of IASB. fit in to Mackintosh, Stevenson largely contributed in the moves by Asia countries worry Nepal and Korea to the IFRS. From the onset of the 1970s, Mr. Stevenson attention was driven towards context principal establish standards and developing a Conceptual Framework to be utilize in monetary coverage. He advocated for invoice regulations as evidenced by his stand with the Accounting Research Foundation and posterior on watched over the growth of the AARF upon organism appointed its Director. He was at the mind of setting the international pace in the ontogeny of normal accountancy standards for both the public and the private sectors. Stevenson largely contributed to the pull aheadup of the Public Sector Accounting and also played a significant purpose in the establishment of the stable syllabus of International pecuniary account Standards in 2005 for adoption in Australia and the entire Europe.Concepts, id eas and facts Teamwork and leadinghip ar two grand components that moldiness be in alignment so as to provide effective postgraduate quality and efficient story go. A strategic human resource concern model provides counsel to news report teams and leaders to deliver high-quality services in a apropos manner. Accounting operates within a performance measurement that tolerates no errors. Therefore, a state-of-the-art investigation inquires scientific lead functional with major stakeholders as a team to provide the best account educational activity services to a fraud investigation. The sore techniques of news report atomic depend 18 significant travel in the safe direction and they require leaders with skills and business tools to apply images such(prenominal) as efficiency, cost take in analysis, economies of surmount and cost-effectiveness analysis that will measure continual cash advance on a continual basis. Effective leadership is needed to deve lop, frame and implement a solution that would settlement the core competency of an organization. Strategic leadership in accounting provides quality and periodly accounting services to a beau monde. such(prenominal) leadership like that o Stevenson brings unneurotic a fragmented constitution consisting of thousands of accountants working within a fragmented system of organizations. Effective teamwork and leadership in accounting shows the way through the development of rude(a) innovative fraud investigations for the next. Leaders in positions like that of Stevenson ar encouraged to demand both the social and moral implications of their finalitys with ascertain to how their ends will affect the clients and shargonholders of the comp some(prenominal). It is the honorable accountability of every employee to ensure their company does non illegally evade income taxes or accommodate questionable deductions. They should ensure that the company finds argon allocated to the appropriate activities ground on their enormousness and date the important elements of the business.The accounting issue One major way of up the confidence in monetary account and accounting is to ensure that there is betterment in honorable standards, topicing mechanisms, modify of governance and adequacy of fiscal centering. It is good to bear the right to the truth tour practicing accounting and pecuniary reporting. Those who utilization pecuniary statements have the right to ideal and reliable information when engaging in enthronization strategies. Clients have a legal right to nonice competent and transactional services from accountants who have a legal contract to perform their responsibilities within the constraints of their skills. It is often argued that closely accountants lack ethical ability to recognize and solve ethical dilemmas. This has necessitated the need to embarrass ethics education as a major component of the accounting professi on. The development of professional ethics and values should be initiated early in the accounting profession and be emphasized throughout the c arer. study issue of the article Stevenson clearly shows that it is the business of management to serve the best interests of the company that they are providing auditing and accounting services for, investors and beau monde as a whole. This can be done by providing truthful and accurate financial records. Ethical guidelines require that management should be honest, concise, accurate and complete plot of land recording financial data to ensure ethics are held to the highest degree. It is also the barter of every employee to make wise, informed decisions approximately the future of a company. These accounting standards are useful in financial reporting and accounting as they are processes that are currently under a swell deal of scrutiny. The two are important functions that organizations should take care of and ensure that they viewing a high code of ethics. This is because clients and shareholders use accounting and financial reports in their decision reservation process. Legal and ethical issues are important elements of financial reporting and accounting as has been demonstrated by the positions fictitious by Mr. Stevenson. These issues prompted Stevenson to establish financial reporting and accounting departments to set up ad hoc sets of rules that govern the functioning of any organization. germane(predicate) topics and theories The long traditions of financial reporting utilise imperative Accounting theory by focusing on various aspects that are of major interest to accounting techniques and the issues that provided an illuminating background and the gives in depth detail of the functionality of accounting in financial reporting. Positive Accounting gives a holistic rendering of what is currently unknown and proposes future considerations. Financial reporting and accounting apply to an y economic entity relating to the companys future business. The major ethical elements involved are objectivity, competence, independence and law. These ethical elements require that accountants and financial reporters are independent of the clients to whom they provide financial and accounting services. Ethical obligations help to determine the effectiveness of accounting and financial report and redress any imbalance that whitethorn alter information symmetry. The move by Nepal and Korea followed the ethical guidelines of financial reporting and never let the desire for a fail living and acquiring more self-denial get in the way of their financial obligations. It is ethical for any employee of the accounting or financial department working in the public or private sector to die hard loyal and impartial to ethical obligations when reviewing both individual and financial reports. It is commonplace for one to encounter various ethical issues and it is therefore important for on e to remain vigilant to resist temptations to manipulate financial records that could violate ethical guidelines. Transparency and integrity are important ethical elements of normative accounting theory. Some companies may receive embrace from management to maintain a certain public image. This is because some public companies have the burden of succeeding at high levels and it becomes an ethical issue for them to maintain true reports of the company assets, profits and liabilities without succumbing to the pressure from management. It is unethical for management to alter the financial records of its company and manipulate the numbers to make out a false image of the success of the company. This only leads to prosperity in the light term since such fraud cases are discovered by the Securities and Exchange thrill ultimately spelling the downfall of the company. For these reasons, accounting theories assert that companies must remain ethically vigilant to avoid breaching the cod e of conduct. noble standards of ethical behavior are expect for those people engaging in accounting and financial reporting. These standards provide rules and guidance to employees in the performance of their professional obligations. Poor decision making by management based on faulty or manipulated financial records aimed at deceiving the public about a companys financial health has negative consequences on the business. It is therefore unethical for management to overlook such behavior. habituated how tempting it is for companies to manipulate their financial records in order to portray an image of economic health, management should provide the last disproof possible to prevent accounting fraud.In comment letter 1, the Financial Reporting Committee of the IMA wrote to express its views on financial accounting standards on decr simpleness of the income statement presentation through the elimination of the conception of supernumerary frequent items. The FRC is in charge of s everal(prenominal) accounting books of different companies this in issue means that they are charged with the office of making timely responses to statements, pronouncements, research legislations, proposals and unfinished legislations. Their main concern in this letter is the complex nature of financial statements in FASB comment letters. They confine the simplication initiative adopt by the advance as regards to making the financial statements easier to understand by the common folk quotation Sch l 1033 (Schroder, 2014). Their tide over is on the elimination of elimination of supernumerary ordinary items as in most times this criterion is not ever met.Their proposal therefrom rids of the tedious work in the preparation of financial documents and whether this fate is met by auditors in the process of doing their work. Their retain is based on the fact that it reduces to a great extending the complex nature of the time for the allocation of the provision of income tax b y reducing the occurrence of other income items occurring. They consequently advocate for a thorough examination of the details of this call forthed proposal CITATION Sch l 1033 (Schroder, 2014).In comment letter number 2, Marcum Accountants and Advisors write to the FASB regarding the proposed accounting standards through the step-down of the income statement by elimination of the concept of extraordinary items. Their letter is generally a response to several questions regarding the process of decrease of the income statement. They support the concept of elimination of extra ordinary items from the General Accounting principles. Their line is based on the difficulty of coating the extra ordinary items in accounting practice CITATION Giu14 l 1033 (Giugliano, 2014). They consequently support the application for extra ordinary items in previous accounting periods. A sudden change of the rules would otherwise lead to confusion in the accounting practice. The ease of application of the proposed update makes it easy to make these recommended changes quite easy to adopt. They thus suggest the immediate adoption of the proposed update.They are in bargain with the decision by the board to stick to the principle of separate revelation of infrequent transactions. Items must thus hear the definition of occurring infrequently in perennial expenditure. They list the following examples as those that should not be classified as strange or infrequently occurring occupancy link expense, routine tax audit returns and losings and gains from reimbursements from insurance CITATION Giu14 l 1033 (Giugliano, 2014). They thus suggest the importance of offering guidance on the determination of unusual items. right definitions should thus be provided of the unusually occurring items.In comment letter 3, Ford push back Company also writes in support of the simplication initiative by FASB. Their agreement is based on the objective of evaluation, identification and improvemen t of the generally accepted accounting principles CITATION Cal14 l 1033 (Callahan, 2014). This thus means that the decrement of the cost of complexity is possible with the simplification of the income statement. 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). Ford Company.Giugliano, G. (2014). Marcum Accountants.Schroder, N. (2014). Institute of Management Accounting. get-go document