Limitations to Financial Reporting Institute of Chartered Accountants Essay

Limitations to Financial Reporting Institute of Chartered Accountants in England and Wales - Essay Example Limitations to Financial Reporting Institute of Chartered Accountants in England and Wales The institution has identified a number of limitations with the present day financial reporting system such as disclosure of intangible asset values, the justification of fair value assumptions made and so on. The report is written from the perspective of accounts managers who perceive the regulatory environment for preparing financial reports. The report analyses the limitations faced by accounts managers in the current accounting and regulatory environment and the required changes necessary to improve the quality of reporting. One of the prime limitations of the financial reporting system is identified to be the lack of existence of a single static model of reporting. Different jurisdictions are seen to have established differential requirements associated with financial reporting. Accounts managers, who have evaluated the financial regulations and their shortcomings, believe that such a crucial step reduces the integrity issue associated with accounting and its reporting. It is also seen that the jurisdictions established are governed by different regulatory authorities, leading to differences in the manner in which governance is executed. On the basis of size, ownership and business activity, governance and reporting of business activities are seen to differ. The requirements established in terms of reporting are seen to alter form year to year.