Forensic Accounting Essay Example | Topics and Well Written Essays - 3000 words

Forensic Accounting - Essay Example (Lexicom, 2007) The standards that have been set are usually fixed making it hard for investors from other states to operate using the same starndards.Foreign investors usually have their standards and it becomes hard for them to cope with the new standards. (Lexicom, 2007) Principle based systems will provide a conceptual framework basis that will be followed by the accountants. In centrally, rule based systems has detailed rules which are to be followed. Under the principle based system, one will lay out the objectives of good reporting and then provides guidance that explains the objectives. In rule based systems the rules are unavoidable and its intent is not to provide guidance. Both systems are used by accountants depending on the nature of the objective. (Toppe, 2008) 1.2.1 IASC.This was formed as a not for profit organisation that is incorporated in the US. It is the parent entity of the IASB which is mandated with setting of standards. Its structure includes Trustees, Standard Advisory council, IASB and the International Financial Reporting Interpretation committees. (IFRS, 2012) 1.2.2 IASB assumes the accounting standard setting responsibilities from the IASC.This is because there was restricting on the move to shape IASC for the future. The structure includes IASC foundation. (IFRS, 2012) 1.2.3 SAC (Standard Advisory Council) is vital for it ensures that the objectives of the companies are met. This consists of the selected board of directors. They address on the matters that relates to the standards of the organisation. (Board, 2008) 1.2.4 IFRS Interpretation committee ensures that a consensus on the appropriate accounting treatment and providing an authoritative guidance on those issues. This normally consists of 14 voting members appointed by the trustees. (Board, 2008) 1.3.2 EC (European Commission) is mandated to regulate and