THE EFFECT OF CONVERGENCE WITH INTERCONTINENTAL FINANCIAL CREDIT REPORTING STANDARD [IFRS]-BASED ACCOUNTING STANDARDS ON STOCK MARKET: EVIDENCE FROM MALAYSIA OPEN PUBLIC LISTED COMPANIES
EVI OKTAVIANI SORAYA
Task management report submitted in partial fulfillment of the requirements for the award of the level of Master of Business Administration
International Business College
I announce that this thesis entitled " The Effect of Convergence with International Monetary Reporting Common [IFRS]-Based Accounting Standards On Stock Market: Data From Malaysia Public Listed CompaniesвЂќ is the result of my very own research besides as reported in the referrals. The thesis has not been acknowledged for any level and is certainly not concurrently submitted in exigence of any other degree.
Identity: EVI OKTAVIANI SORAYA
Day: JANUARY 2014
Table of Content
1 . Background of Study
1 . one particular Background of International Economical Reporting Regular [IFRS]
Financial statements are essential for trader in helping them for making decision on where to invest globally. Because of this , high-quality accounting standards permits investors to get appropriate info which in turn gives investor self-confidence in making decision. There is a travel to globalize accounting requirements and techniques that will be approved by the government bodies, certification systems, the accounting profession and the business and academic areas around the world to be able to minimize the actual dangers of bias, misinterpretation, inexactness, and double entendre.
Over the years the business community has identified accounting as the language of business and financial details as a kind of language. Since accounting has been accepted as being a language, it is best that firms around the world of talking in the same language. The latest political and economic occasions have focused on the pressing need for even more uniformity in international accounting standards. There is also a requirement for a universal set of accounting criteria which can unite the language of accounting around the world and solve the problem of differences in accounting practice.
It is no real surprise that the globalisation of capital markets has been accompanied by necessitates globalisation of economic reporting. Certainly, В the globalisation of the planet's capital marketplaces has created the need for comparable and reliable economical information to back up the varied transactions and functions of the marketplaces Hora et al.. The accounting job has encountered the pressure of globalisation and continues to look for approaches to produce finances using a unique accounting procedures that can be comprehended by most business contemporary society in the last few decades. Not only that, to ensure usability, economical information likewise supposed to be understandable and corresponding to make credit decisions and investment more readily retrieved.
Though the means of internationalisation may be difficult, Anderson said that " a set of international accounting requirements will allow new horizons of financial statement evolution by the fact that the comparative evaluation of the charge of return and profit/loss set crafted in "balance sheet" has made your competitors between corporations become more pertinentвЂќ.
In order to solve this challenge, a story global accounting standard Intercontinental Financial Credit reporting Standard (IFRS) has been presented. Currently IFRS has been more and more adopted by accounting policy makers all over the world. It is believed over a hundred countries will be...