Title: Financial Accounting Development Tendency and Some Issues of Financial Reporting in Mongolia
Abstract:At present the International model based on IFRSs has been the foundation of the financial reporting in Mongolia and in most other countries around the world. More than 20 years have passed since the ...At present the International model based on IFRSs has been the foundation of the financial reporting in Mongolia and in most other countries around the world. More than 20 years have passed since the accounting and financial reporting systems of Mongolia was reformed to be in line with international standards, the laws on Accounting and Auditing entered into force, which constitute the appropriate legal framework to enforce implementation of international standards and the country achieved significant advancement in processing and distributing financial information, there is still gap in setting up national financial reporting system fully harmonized with internationally recognized level. Most business entities prepare financial statements, but it is not meet the full requirements of IFRS’s which negatively affect the decisions made by accounting information users either internal or external, as well as the policy issued by top and medium level management. This case gives rise to topical issues in social and economic life of the country. In the paper the main tendency for development of dissimilar reporting models, which are Continental, Britain-American, Latin American and International models are reviewed. Moreover, the current status of financial reporting in Mongolia consistence with IFRSs, including accounting and financial reporting system development and the latest survey on IFRS’s implementation in financial reporting considered and conclusions and recommendations are analyzed. Based on survey we conclude that Mongolia is on the transition period of implementation IFRSs and the significant improvements in legal environment of accounting and regulating the legal implementation and in capacity building of accounting professionals need as priority in order to end the transition period. First models of financial reporting were developed in the XV century. At present the International model based on IFRSs has been the foundation of the financial reporting in Mongolia and in most other countries around the world.Read More
Publication Year: 2016
Publication Date: 2016-12-01
Language: en
Type: article
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