An image of the selected comment letters of the firms is presented herein the appendix section of the task (please refer to appendix pp,10). The current proposal is drafted in association to specific suggestions as regards accounting standards that in turn can help in development of a foundation of varied updates as well as style of reporting in assertion of income.
The exposure draft designed with regard to specific regulation or rules related to accounting has the intent to concentrate on updates in statements of income and focuses on reports that can be published for comprehensive proceeds. In essence, this can aid in the process of formulating a superior income statement and help in comprehension of the statement of income. Also, this specific development can be said to be crucial for alleviation of errors and misstates and reduction of complexities that are relatable to designing the statement and at the same time comprehending the same. It can be hereby said that this exposure draft can help in generation of a procedure that might deliver effectual preparation and arrangement of the declaration of income and help in creating a higher quality disclosure of comprehensive statement of organizations.
The current report presented takes into consideration four different enterprises that have put forth their comments on the proposed draft that has been issued in the official website of the Financial Accounting Standards Board. In essence, this report at hand can help in developing an idea regarding the comments and help in critical analysis of the comments obtained from corporations belonging to different sectors of business (Whittington, 2015). It is by means of thorough analysis of the comments presented to the draft by then four different business concerns, a conclusive solution can be developed suing methods of assessment of accounting regulations/directives. Thus, it can be hereby mentioned that this specific method can prove to be effectual in responding to different problems in an effective manner. Further, the secondary intention of the current report is to explicitly present principles as well as guidelines associated tom system of accounting that in turn can aid in developing accounting standards (Walton, 2018). Moreover, this research paper also intends to evaluate various types of comments expressing approvals or disagreements of the corporations as regards the draft to arrive at a conclusive result as far as effectiveness of standards of accounting are concerned.
Again, the report can also help in illustrating in detail about standards and regulations of accounting in association to upgrades of statement of income and reporting of comprehensive proceeds. This in turn can help in safeguarding emotions of organizations and can help in maintenance of level of effectiveness of the firm and preservation of strong as well as enduring bond between firms as well as their operations that can affect the whole scenario of business. Thus, enhancement along with upgrade of this type of procedures associated to accounting disclosure can be explicated in a coherent manner. Schreiber (2017) says that accounting standards that has the intention to address particular thoughts, knowledge as well as ideas can prove to be effectual for firms operating in different sectors and help them in putting forth their comments. Particularly, the comments act as the feedback that can be acquired from diverse proposals and this can prove to be an effective process through which public interests can be augmented (Perkins, 2016). Particularly, in the same way, questions that are relatable to changes and the ones that are presented in the format of FASB are elaborately analysed by means of comments. However, it can be herby observed that corporations have the potential of commenting on specific questions that are presented in the form and explicates approvals or disapprovals that can be delivered by respondents. Also, it can be hereby observed that there are numerous questions that are illustrated and the questions framed are presented for gaining responses that in turn can look after interests of public on the whole.
The current report explicates that the comments acquired from the selected participants can be accumulated from the chosen respondents for deducing ideas, notions as well as knowledge as regards approvals or disapprovals regarding the change in the regulations suggested in the draft.
American Bankers Association is a leading banking corporation that is in charge of diverse operations of the bank in the United States of America. As such, this association has the intent to address various concerns as well as issues associated to banking operations in America and helps in providing an effective framework for operations. As per the exposure draft presented by Financial Accounting Standards Board, it can be hereby mentioned that the association has appreciated overall opportunity to deliver a statement on planned standard of accounting and offer guidance regarding system of accounting and practice. This in turn has helped in creating value in particularly comprehensive proceeds. However, this organization is of the view that this value creation can mislead the financiers and become a burden on firm’s administration. In particular, the amendment in the framework shall not be useful for different banks and their operations as this system of accounting can lead to a stranded amount of tax that can subsequently affect bank’s capital (Osei, 2017). Hence, in conclusion it can be said that the company disagrees to the proposed draft since they suppose that these alterations in directives of accounting can be influential on financial statements as well as system of reporting assertions. Also, it can adversely affect different operational actions of banks. Furthermore, the association also delivers suggestions regarding the changes that can be initiated for betterment of the proposal also.
The Travellers Companies Inc engages in the business of delivering casualty along with product as well as service related to the property insurance for varied kinds of operations of businesses as well as individual units. In their response, this company has mentioned that they are in favour of the current alteration since they believe that this change in regulation can help in addressing varied issues of stakeholders regarding current GAAP guidance that calls for specification of deferred tax assets/liabilities (Perkins, 2016). In essence, this corporation provides their consent regarding the alterations with the premeditated ASU that calls for the need of reclassification from basically the comprehensive earnings. It is in this way, proposals presented in this particular draft are upheld by the business concern Travellers Companies Inc. It can be hereby mentioned that company has approved the changes and expressed their nod by suggesting incorporation of then changes.
The Goodyear Tire and Rubber Company engages in the business of manufacturing high class tires in addition to different rubber accessories and attempts to maintain an effectual market. This company expresses their dissent to the proposal as regards as current draft presented by FASB. This company is not in favour of the proposal where there is provision of reclassification and necessities of transition are illustrated. This is because they are of the view that it might direct the way to higher amount of balance of particularly stranded amount of tax that can essentially defeat main aim behind the proposed alteration (Schreiber, 2017). Then again, the company upholds backward monitoring that is presented in the exposure draft as the business entity is of the view that this might possibly can alleviate stranded tax influence from presenters of financial assertions.
Chevron Corporations is a leading energy corporation that is engaged in the operations of effective delivering crude oil along with natural gas plus other products that can be effective in the process of development of entire economy on the whole. In essence, this business corporation has responded to all the questions formulated for the draft. Analysis of then comment reveals the fact that this company is in favour of the proposed draft and upholds the views of adopting early. In addition to this, the comments also express the fact that the company also assents to the planned date presented in the draft. However, in case of proposal of reclassification it can be hereby witnessed that the business concern accepts the said proposal, but it is of the opinion that influence on tax alterations of different foreign subsidiaries can show the way to influence on stranded impacts of tax
The significance of exposure draft illustrates developments are important for amendments to the statements of income and system of reporting of comprehensive earning. This in turn can direct the way towards enhancement in the assertions of income that can again be introduced for superior level of the outcomes as regards system of accounting can be hereby attained.
Conclusion
The above mentioned study indicates towards proposal presented in the draft presents analysis of comments of selected respondents to the amendments, This suggestions and feedback in turn helps in the process of ascertainment of requisite amendments to the proposal and development of a better one.
References
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Osei, E. (2017). THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB), AND THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) SINGS SIMILAR TUNE: COMPARING THE ACCOUNTING TREATMENT OF NEW IFRS 16 WITH THE IAS 17, AND THE NEW FASB MODEL ON LEASES. Journal of Theoretical Accounting Research, 13(1).
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Schreiber, S. (2017). ACCOUNTING FOR RESEARCH AND DEVELOPMENT COSTS AND SIMILAR COSTS: DIFFERENCES AND SIMILARITIES BETWEEN US GAAP, IFRS AND GERMAN COMMERCIAL CODE. Journal of European Economy, 5(4), 399-41
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