Critical review and evaluation Essay Example | Topics and Well Written Essays - 1250 words

Critical review and evaluation - Essay Example) have the major(ip) task of presenting the monetary statements which can fulfil the requirements of all the users of financial statements and not only the investors.This report is presented by CFA Institute as guidance to these standard setting bodies to incorporate some major changes in the living set of financial statements with respect to the investors. The following discussion holds a critical approach as to whether the proposals suggested below this report by CFA Institute are considered and incorporated in the most recent advancements made by FASB and IASB.CFA institute provided this proposal to protect the stake of investors whether equity or debt investors. The aim of the institute was to prepare the financial statements that can achieve the objectives of the investors.However, the financial statements do provide the necessary nurture upon which the investors can take their decisions, only CFA institute failed to provide mor e investor specific reading which should be included in the financial statements by FASB and IASB.From the above proposal, CFA institute wanted to secure the equity investors as they have the last claim on the assets of the company after creditors and other suppliers of finance. CFA institute holds the view that the equity investors should have the most recent information regarding the off-balance planer transactions, contingencies and other claims to which they are liable but they are unaware regarding their amounts and magnitude. Similarly, those assets, which act as taxation generating units should also be come on the face of financial statements to provide the equity investors specific information about these matters.If the existing standards are taken into consideration, it can be noted that the amounts in respect of contingencies, off-balance sheet transactions etc are still not provided as the standard setting bodies believe that these areas still wish of measurement due to which they cannot be recognized.