Abstract

This short study involves around the examination of factors affecting the financial
reporting in the accounting fraternity. The writer’s intention is to explore and identify
whether the current reporting framework and standards are relevant with time. Industry
practitioners and academics claim that changes in the global political and economic
environment had been influential in raising doubt on the relevancy of the existing
financial reporting; as a result the reported financial position of the firm does not portray
the actual situation of the firm. Therefore, this study explores the extent to which the
claimed factors are affecting the financial reporting. After which, critical analysis is
carried out to identify the possible impact such changes could have on the relevance of
financial reporting. Upon analyzing the current situation, recommendations are made to
address the shifting trend in order to improve the financial reporting framework and
consolidate its relevancy and currency. Conclusion is made with emphasis to embrace
necessary changes to improve the reporting standards so as to satisfy the requirements
of stakeholders.

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 CONTENTS PAGE

Para No. Heading Page No

1.0 Introduction 1

2.0 Reported Trends in the Accounting World 2

2.1 Globalization and Market Integration 2

2.2 Diversities in Accounting 3

2.3 Recurrence of Global Financial Crises 4

2.4 Emerging Perspectives of Financial Reporting 4

3.0 Critical Analysis 6

4.0 Recommendation 7

5.0 Conclusion 7

References 8-9

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