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Students are required to select one publicly listed company from a country that has adopted IFRS, but not from Australia or China. A useful resource for students wanting to locate countries that...

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Students are required to select one publicly listed company from a country that has adopted IFRS, but not from Australia or China. A useful resource for students wanting to locate countries that currently use IFRS is provided byPWC.

Students are to collect the most recent annual financial reports for their selected firm and then prepare a detailed report in which they:

  • critically analyse and explain about the selected firm.
  • Explain about the national reporting and regulatory environment within which the selected firm operates.
  • Select two specific accounting items from the firm’s accounts and discuss the extent to which the company consistently applies the relevant international accounting standards.
  • Discuss whether and how the use of IFRS is enforced within your chosen country.
  • Evaluate whether the firm’s accounts are comparable with their key global competitors.

Reports should be approximately1,000 words in length and appropriately referenced.

Answered Same Day Jul 04, 2020 ACC3IAC La Trobe University

Solution

Aarti J answered on Jul 08 2020
121 Votes
International Financial Reporting Standard – Volkswagen
Course Name
Course Date
Student’s Name
IFRS – VOLKSWAGEN        4
Introduction
Volkswagen is one of the biggest companies of automobiles of Germany. The company has two major division which includes the Automotive Division and the financial service division. The automobile division comprises of the Passenger card, commercial vehicles and the power engineering business areas. The company reports the passenger car segment to the reconciliation in the passenger cars business area. The company is listed and registered in Wolfsburg, Germany. The company reports its financial statements as per IFRS i.e. the consolidated financial statements is prepared as per International Financial Reporting Standards which is adopted by the European Union. The consolidated statements of the company is prepared in Euros. (Annual Report, 2017)
National reporting and Regulatory environment
As per the European Union, the listed companies are required to follow IFRS which has been introduced to promote the convergence of accounting standards at the global level and ensure consistent and comparable financial reporting across the EU. Under the rules of the European Union, the companies are required to prepare their statements as per the IFRS. As per the regulation (EC) No. 1606/2002 all the listed companies needs to prepare their consolidated financial statements as per international standard of the IFRS. The IFRS helps in providing a common accounting language to help the company’s accounts understandable across the international borders. IFRS is the global accounting standards which is adopted by more than 100 countries across the globe. (European Union IFRS, 2018)
The two major regulatory environment of the European Union includes European Financial reporting advisory group and accounting regulatory committee. The European Financial Reporting advisory group is an independent organization which gives advices to the Regulatory commission of Europe.
Accounting items relevant to the accounting standards
All the accounting items are relevant under the IFRS. There are...
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