INTERPRETATION OF ACCOUNTS & IAS 24

Interpretation of Accounts & IAS 24

Interpretation of Accounts & IAS 24

Introduction

This report deals with the Case study provide for the Connolly Plc, where they have to analyze the performance of another company which they are planning to acquire. This should also be noted that the company is also one of their debtors as well which has a poor payment history. In this report, we will be discussing the importance and usage of IAS 24 in regards with the case provided over here. Apart from that, we will also be performing financial statement analysis for the company in order to come up with the decision that whether the Connolly Plc should go for its acquisition or not. However before that, we should look into the case in more detail.

International Accounting Standards

The International Accounting Standards are a set of rules or laws that establish the information to be presented in the financial statements and how that information should appear in those states. They are not physical or natural laws awaiting their discovery, but rather that man rules, according their business experiences, continues to believe that this is true of importance considered in the presentation of financial information. They are high quality accounting standards, oriented investor, whose aim is to reflect the economic substance of business operations, and present to its stakeholders and other people who are involved in the cycle of the business with the fair view of the company's overall financial position. These Standards are issued by the International Accounting Standards Board (IASB, former International Accounting Standards Committee, and IASC). The rules are known by the acronym IAS and IFRS depending on when you were approved and qualify through the "interpretations" that are known by the acronym SIC and IFRIC.

Within his work period (1973-1999) the IASC issued IAS 41's (of which 29 are in force today) and after its restructuring (2000-present) going to be called IASB issued IFRS 13 ( of which there are 9 in force and the rest under implementation), along with 27 performances.

They have been officially adopted by the European Union as its accounting standards, but only after going through the review of EFRAG, so to see which are applicable in the EU have to check their status.

In the U.S., publicly traded entities will be able to choose whether present financial statements under U.S. GAAP (the national standard) or low NICs.

Other Asian and American countries are also adopting IAS.

More than 100 countries require or permit the use of IFRS or are in the process of convergence between national rules and IAS

IAS 24: information Related Party Disclosures

This section of IAS deals with the information related to the party disclosures. The main objective of this section is to make sure that the overall financial statements of the corporation which contains the information in regards with the financial transaction of the company should depict the true position of the company and demonstrate the chances that its position might be affected by the transactions they indulge in with related parties ...