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The scholarly article I found makes the argument that accounting firms that apply International Accounting Standards (IAS) have a higher quality of accounting. The IAS covers many aspects of accounting and the financial reporting system. It contains many standards of interpretation, enforcement, and litigation that help accounting firms better themselves. The findings in this scholarly article hold great value and have a large body of research behind them. Overall, this article claims that firms that apply IAS standards will provide people with better accounting services.
The scholarly article states that the goals of IASC and IASB standards are to set up better financial accounting. In addition, firms that have implemented IAS are found to have less earnings smoothings. Researchers found that due to this lack of earnings smoothing, IAS firms were found to have more earnings variability. Also, the switch for firms to IAS standards is something that is gradual and will take time to measure. Lastly, IAS standards help accounting firms produce less earnings smoothing which is for workers and firms.
The statements and claims made by the scholarly article are true. It is proven that firms that have IAS standards in place have a better quality of accounting. Firms that have IAS standards in place are more able to quickly recognize losses and are able to recognize other things quicker. In addition, firms that apply IAS standards have less earnings smoothing which is a good thing to have for firms. In general, I agree with the claim of this scholarly article that IAS standards produce better accounting firms.
Thank you,
Austin Bechtel
Bibliography
Barth, Mary. Landsman, Wayne. Lang, Mark. "
International Accounting Standards and Accounting Quality." Journal of Accounting Research
, 2008, http://onlinelibrary.wiley.com/doi/10.1111/j.1475-679X.2008.00287.x/full
Accessed 29 October 2017.
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