Friday, February 21, 2020

The Reasons for Adopting a Single Set of International Financial Essay

The Reasons for Adopting a Single Set of International Financial Accounting Standards - Essay Example The preceding arguments will employ IFRS as a proxy to IAS. The structure of the paper will comprise of the discussion and the conclusion. The discussion section will critically evaluate presented reasons for the adoption of IFRS. The Key highlight of the reasons will include: IRFS advancement of timely information for investors, better quality accounting, comparability, improved earning and management, political incentives and the capital market benefits. The essay will conclude with a summary of the identified driving factors for the implementation of IAS. According to Chua and Taylor (2008), IAS highly promotes timely access to information by investors. The adoption of a single set of IAS enhances the evaluation of companies across regions by investors based on a single standardized accounting framework. IAS underpin timeliness through the standardization of accounting procedures and reporting formats thereby eliminating time lag that has traditionally emanated from the analytical adjustment of the financial statements for the purposes of international comparison. Apart from time aspect, the existences of IAS also leads to cost reduction that could have been incurred in the processing of the financial information in a manner that will allow comparison to be conducted. In light of the globalization effect, it is further imperative that the multinationals adopt a single accounting standard that reconciles financial statements globally across their entire branch network. The provision of financial statement on single IAS further underpins the significance of the value relevance for investors. According to Edwards (2009), value relevance refers to the ability of the financial information documented in the financial statement to adequately expound on the predominant parameters in the stock market.

Wednesday, February 5, 2020

Law of Trusts Essay Example | Topics and Well Written Essays - 2500 words

Law of Trusts - Essay Example Since the repeal of the Preamble, the law has progressed on the back of judicial decisions arrived at in the light of the Preamble. The traditional definition of such trusts came from Commissioners for Special Purposes of Income Tax v Pemsel (1891), which divided charitable trusts into four categories: trusts for 'Relief of Poverty', for 'Advancement of Education', for 'Advancement of Religion' and, trusts for 'Purposes Beneficial to the Community'. Trusts for the advancement of education, includes conventional education and training. Thus trusts for schools, colleges, universities and other institutions of learning are valid. But this head extends to any mode of acquiring useful knowledge from literary learning to scientific researches etc. In the case of Re Shaw (1957) it was held that a gift by George Bernard Shaw in his will for research of a forty letter alphabet and translation of one of his plays into it was not charitable. It is arguable whether the same result would have been reached under the principle laid down in the later case of Re Hopkins (1965). It concerned a gift to Francis Bacon Society to be used to find manuscripts proving that the plays of Shakespeare were written by Francis Bacon. The gift was held charitable. The result of research must also enter the public ... Therefore research carried out by companies and kept for their exclusive commercial use is not charitable. Although far from the concerns of the Preamble, trusts for animal welfare such as that of the preservation of wildlife through animal sanctuaries have been held to be charitable, this has been due to a change in the general approach that was adopted by the courts in the mid-nineteenth century, where charities of this kind were likely to be held to be a failure because of various reasons. Trusts for animals would be charitable if they 'tend to promote and encourage kindness towards animals and to stimulate humane and generous sentiments in man towards lower animals': Re Wedgewood. However in Re Grove Grady (1929), the Court of Appeal held that a gift for an animal sanctuary which specifically excluded humans so that the animals would not be molested was not charitable, for such a gift produced no public benefit. If it is found that the charitable purpose would be a failure because the means for its implementation as chosen by the testator are either impractical or impossible to carry out then the doctrine of cy-pres or ss13 and 14 of the Charities Act 1993, can be applied so that it would not fail. The cy-pres doctrine allows the courts to direct that the trust property be applied to a purpose as close as possible to the one intended by the settler. Cy-pres can save charitable trusts from failure at the outset or from subsequent failure when carrying out the purpose becomes impossible or impractical. The doctrine only applies to a purpose which already counts as a charitable purpose. In order for the courts to re-direct trust money intended for charitable purposes, the courts must find that the donor