Financial accounting practices are dynamic responses to changing political, social, eco ces are dynamic responses to changing political, social, econo and commercial conditions. If ann mic decisions, the accounting treatment for similar transactions should be uniform and consistent. ual financial reports are to be useful in making economic Required: outline the main arguments for and against accounting standards. Briefly explai there been differences in financial reporting across different countries? n why have (10 marks) (b) In a modern corporate structure, holders of convertible bonds and of convertible preference shares are entitled to become equity shareholders at a future date. If investors exercise their entitlement in the future, the earnings per share (EPS) calculations will be significantly affected. Required the basic and diluted earnings per share definitions and illustrate with an example the Outline post-tax profit adjustments needed in the case of convertible bonds and convertible preference shares. (10 marks)