3M COMPANY Coursework Example | Topics and Well Written Essays - 1250 words

3M COMPANY - Coursework Example A unique accounting standard is used across the world to deliver a unique and global standard high quality accounting and reporting of financial statements. The main purpose is to convey the economic condition of an organisation in the most fair and unbiased manner. The shareholders would make use of such information to make decision whether to invest in a company or not. Evaluation of the purpose and context of International Financial Reporting Standards The International Financial Reporting Standards Foundation (IFRS) is an autonomous, non –profit organisation that works for the interest of the public. It is devised as a universal global language that is used for business dealings so that the accounts of a company are comprehendible and comparable across boundaries of nations and continents. The main purpose of this accounting standard is to overcome the cross country barriers in today’s time when many companies have their operations overseas and hence have to account for their businesses in different business languages (Bragg, 2010, p.172). The European Union was the first to abide by the IFRS. However, it was later adopted by the other countries across the globe considering the benefits it provided. Prior to the implementation of the IFRS, the International Accounting Standards was used which operated between the years 1973 and 2001 and was controlled by International Accounting Standards Committee (IASC). The prime objectives of the IFRS include: Development of a distinct set of premium, comprehendible, imposable and internationally accepted IFRS through its regulatory and supervisory body. Promotion of such standards and ensuring that it is properly implemented. Providing with assistance to the developing countries in their financial reporting needs. Promotion and adoption of an improved IFRS through the union of IFRS and the National Accounting standards. The IFRS is used across the world by the different companies. Regulatory bodies, analy sts and accounting professionals with an aim to reduce costs for comparing financial statements that otherwise would have arisen due to use of various accounting standards. Most of the MNC’s have cross country operations and they would benefit most from this IFRS as it is a unique standard of accounting. However it had been argued by several experts that the IFRS may not provide with a fair valuation of the companies residing in different countries because the local laws of countries may vary and thus losses or profit may not be accounted for in a proper manner (Kirk, 2006. p.306). The foundation ensures accountability to the public through the pathway of keeping their work transparent and consulting with any party who is interested in this process of setting a standard. They also link to the public in a formal way. There is a monitoring board that is linked to the public for all their accounting questions. The trusties review the constitution once in every five years. The pu blic can also access their proposals through their website and provide recommendations. All their meetings are open to the public and the notes are also disclosed to the public. 3M communicates with its shareholders and sends out the detailed financial performance in the Annual General Meeting through the Publication of the annual report (Needles, 2013, p.714). The main objective of 3M is to impart an unbiased awareness among the investors of the company and encouraging them to hold on with such investments. The company is accountable to the shareholders because they are the ultimate owners of the company. There is a problem with disclosing all the information in