FRA : Reading 22. Financial Reporting Standards

Reading 22. Financial Reporting Standards

a. describe the objective of financial statements and the importance of financial reporting standards in security analysis and valuation. (page 11)

F.S목적 - 투자자에게 정보제공 

FS standards

- Financial reporting이 similarly, consistency하게 하는 데 목적

- remain flexible, allow discretion

b. describe roles and desirable attributes of financial reporting standard-settingbodies and regulatory authorities in establishing and enforcing reporting standards, and describe the role of the International Organization of Securities Commissions. (page 12)

standard-setting bodies : FS standards 제정 기구

- FASB(Financial Accounting Standards Board) : 미국, US GAAP 제정

- IASB(International Accounting Standards Board) : 유럽, IFRS 제정

 

regulatory authorities : 규제당국

- SEC(Securities and Exchange Commission) : 미국의 규제 당국

- FCA(Financial Conduct Authority) : 영국 규제 당국

- IOSCO(International Organization of Securities Commissions) : 국제 규제 당국으로 SEC, FCA ... 각국 기관이 속해있음

 

IOSCO의 3가지 Objective

1(core objective). ensure the fairness, efficiency, transparency of markets

2. protect investors

3. reduce systemic risk

 

c. describe the status of global convergence of accounting standards and ongoing barriers to developing one universally accepted set of financial reporting standards. (page 13)

global convergence

- 현재 IFRS로 합쳐지는 추세임 (SEC는 더 이상 IFRS를 따르는 기업이 US-GAAP으로 바꿔서 공시하도록 하지 않음)

- 2017년 말 이후로 convergence계획이 없음

 

barrier to convergence

- 나라마다 standard-setting bodies, regulatory authorities가 다름

- 정치적 압력(business group)

 

d. describe the International Accounting Standards Board's conceptual framework, including the objective and qualitative characteristics of financial statements, required reporting elements, and constraints and assumptions in preparing financial statements. (page 14)

objective : 투자자에게 정보제공(투자 의사결정을 위한)

*qualitative characteristics : 질적특성

fundamental characteristics

1. Relevance : 목적 적합, 타당함

2. Faithful representation : 표현의 충실성(no error, neutral, complete)

 

enhance characteristics

1. Comparability : 비교가능성

2. Verifiability : 검증가능성

3. Timeliness : 적시성

4. Understandability : 이해가능성

 

Constraint and Assumption : 제약사항 및 가정

- 정보제공하는 일의 cost보다 정보로부터 얻는 benefit이 커야함 (cost-benefit tradeoff)

- 비계량정보 포함 못함 (non-qualifiable information)

- 계속기업 가정 (going concern)

- 발생주의 회계 (accrual accounting)

- Balancing of qualitative characteristics.

 

e describe general requirements for financial statements under International Financial Reporting Standards (IFRS). (page 17)

- reporting frequency at least annually

- 요구하지 않는한 no offsetting : net이 아니라 gross 얘기임

- materiality and accrual basis

 

f. compare key concepts of financial reporting standards under IFRS and generally accepted accounting principles (US GAAP) reporting systems.(page 18)

IFRS - IASB

USGAAP - FASB, does not allow upward valuation

 

g. Identify characteristics of a coherent financial reporting framework and barriers to creating such a framework. (page 18)

일관된 재무공시(coherent financial reporting)를 위한 characteristic 

- Transparency : full disclosure, fair presentation

- Comprehensiveness : 포괄성, all types of transactions이 포함되어야 함

- Consistency : 비슷한 거래는 비슷한 방식으로 처리되어야함

 

일관된 재무공시를 막는 장애물

- Valuation : 측정 방법에 대한 판단이 필요하기 때문에 달라질 수 있음

- Standard setting : 각 나라마다 감독기관이 다름

- Measurement : 측정방법이 여러 가지가 있음

 

h. describe implications for financial analysis of differing financial reporting systems and the importance of monitoring developments in financial reporting standards. (page 19)

- 애널리스트는 지속적으로 재무공시의 변화를 주시하고 변화를 update 해야함

 

i. analyze company disclosures of significant accounting policies. (page 20)

- accounting policy 회계정책

- 새롭게 개선된 회계기준 적용에 대한 내용(새로운 회계기준을 적용하지 않겠다는 말은 안됨)