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Undeniably, profitability is the ultimate goal of companies and readers of a companys financial statements are very much interested in the reported profit figure. The
Undeniably, profitability is the ultimate goal of companies and readers of a companys financial statements are very much interested in the reported profit figure. The profit figure is achieved by the preparation of the statement of profit or loss and the statement of financial position. If the foregoing is the case, why then bother about the statement of cash flows?
B. Globally, accounting standards are developed based on different methods. It is generally agreed that the nature of accounting standards depends on the systems of regulation. It has been argued that there are two main systems of regulation.
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Identify and explain the difference between the two systems of regulation, stating clearly which system you believe describes the International Financial Reporting Standards (IFRS)
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