Accounting Framework. The accounting issue that is discussed in the article is convergence of accounting standards for financial reporting. Without the convergence, there will be problems and complicated process to prepare the reports.

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Table of Contents

Question 1: 1

a) Seven Users of the Framework for the Preparation and Presentation of Financial Statements:- 1

b) Accrual Accounting Concept:- 3

c) Historical Cost Convention:- 4

Question 2: 6

a) Accounting Issue discussed in the Article:- 6

b) Role and Objectives of International Accounting Standards Board (IASB):- 7

c) U.S GAAP vs. International Financial Reporting Standards; UK (IFRS):- 8

d) Convergence of Accounting Standards is considered relevant or irrelevant:- 10

References: 12

Question 1:

a) Seven Users of the Framework for the Preparation and Presentation of Financial Statements:-

There are seven users. The first user is Investors. Investors are interested in the enterprise ability to achieve future earnings and to increase its wealth, taking into considerations the monetary flows released. They also need be able to assess whether the company will able to pay dividends, and to measure the performance of the business' management overall.

The second user is Employees. Employees typically would require information about the stability and continuing profitability of the business. Such information can help them to increase the involvement in the company, the interest in