C H A P T E R   1
                     C H A P T E R   1
             FINANCIAL REPORTING AND 
             FINANCIAL REPORTING AND 
              ACCOUNTING STANDARDS
              ACCOUNTING STANDARDS
                   Intermediate Accounting
                          IFRS Edition
                     Kieso, Weygandt, and 
                           Warfield 
  Slide 
   1-2
                         Learning Objectives
                         Learning Objectives
                         Learning Objectives
                         Learning Objectives
       1.  Identify the major financial statements and other means of 
           financial reporting. 
       2.  Explain how accounting assists in the efficient use of scarce 
           resources. 
       3.  Explain the need for high-quality standards.
       4.  Identify the objective of financial reporting.
       5.  Identify the major policy-setting bodies and their role in the 
           standard-setting process.
       6.  Explain the meaning of IFRS.
       7.  Describe the challenges facing financial reporting.
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   1-3
       Financial Reporting and Accounting Standards
        Financial Reporting and Accounting Standards
        Financial Reporting and Accounting Standards
        Financial Reporting and Accounting Standards
                                 Objective of                                Financial 
                                 Objective of      Standard-Setting          Financial 
          Global Markets          Financial        Standard-Setting         Reporting 
                                  Financial          Organizations          Reporting 
                                  Reporting          Organizations          Challenges
                                  Reporting                                 Challenges
          Financial            General-purpose      IOSCO                Political 
          Financial            General-purpose      IOSCO                Political 
          statements and       financial                                 environment
          statements and       financial                                 environment
                                                    IASB
          financial reporting  statements           IASB
          financial reporting  statements 
                                                                         Expectations gap
                                                    Hierarchy of IFRS    Expectations gap
          Accounting and       Capital providers    Hierarchy of IFRS
          Accounting and       Capital providers
                                                                         Significant financial 
          capital allocation                                             Significant financial 
          capital allocation
                               Entity perspective                        reporting issues
                               Entity perspective                        reporting issues
          High-quality 
          High-quality 
                               Decision-                                 Ethics
          standards            Decision-                                 Ethics
          standards
                               usefulness
                               usefulness
                                                                         International 
                                                                         International 
                                                                         convergence
                                                                         convergence
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    1-4
                        Global Markets
                        Global Markets
                         Global Markets
                         Global Markets
     World markets are becoming increasingly intertwined.
              Top 20 Global Companies In Terms Of Sales
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   1-5
                        Global Markets
                        Global Markets
                         Global Markets
                         Global Markets
      Significant number of foreign companies are found on 
      national exchanges.
                                                   Illustration 1-2
                                                   International Exchange
                                                   Statistics
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