International US financial reporting standards

This chapter presents a brief summary of the study, the salient findings based on the data gathered, the corresponding conclusions drawn, and the recommendations offered. The above findings show that there are similarities and differences between companies using fair market values and non –fair market values in the preparation of financial accounting data.

The similarities like they all have assets, liabilities and shareholders equity gives the impression that the investors and other shareholders can decide whether to invest additional money into the business or to withdraw their funds from the derivatives like silver, coffee and other derivatives. The similarities also show that both the companies using the fair market values and those that do not use the fair market values in the preparation of financial accounting data have revenues, expenses and profits.

This gives the investor an impression that he or she can now decide to invest in petroleum, coconut or palladium. The above findings show that the company will be better off if it uses the fair market value in the generation of financial accounting data. The financial accounting data would be a plus if the fair market values are used. Also, the fair market values will make the financial statements material, relevant, conservative. Also, the fair market values will make the financial statements valid and consistent.

In addition the fair market values will make the financial statements a more informed tool for the investor in derivatives like gold, the United States dollar, the crude oil and other commodities as he or she decides to invest more money into the company or to withdraw his or her hard –earned money from his or her current investments in the derivative market or a business partnership or corporation. The use of the fair market value complies with the accounting theory of substance over form. The above finding clearly shows that the use of the fair market values will give many pluses to the financial accounting data.

The use of the fair market values will make the financial accounting more reliable in terms of decision making. The findings above also show that using fair market values complies with the international financial reporting standards. And, accountants are professionally trained to convince owners of companies, the managers and the board of directors of publicly listed companies to comply with the latest international financial reporting standards. Complying with the accounting standards is a must and not a voluntary action.

The main purpose of the issuance of such standards as the International Financial reporting standards is because the financial statements must be neutral. Meaning, it must not favor one stakeholder to the detriment of displeasure of the other stakeholders of the company. The stakeholders of that are very much interested to see the financial statements that are mentioned above include the suppliers, the creditors, the customers, the shareholders, the managers, the government regulating agencies, the current and prospective future investors and many others. RECOMMENDATIONS:

It is highly recommended that further studies be done on the following areas: 1)    To have quantitative research to determine the peoples’ choice in terms of fair market value and other ways of  reporting financial accounting data. 2)    To determine the future price probabilities using the historical fair market value trend as shown in the derivatives market graphs and other related literature. 3)    To determine the right time to invest in derivatives and other investment opportunities with the use of the fair market values of derivatives and other investment opportunities.