IFRS Reporting and Disclosure Requirements in Emerging Capital Markets

by | Aug 9, 2023 | Accounting

Apply financial reporting concepts, standards, and disclosures to financial statements using IFRS
Define the term “emerging capital market.” Are IFRS reporting and disclosure requirements iin these markets different from the requirements required in developed markets?

 

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Answer

Sample Answer

Applying IFRS Reporting and Disclosure Requirements in Emerging Capital Markets

Emerging capital markets refer to countries or regions that are in the process of developing their financial markets and regulatory frameworks. These markets are characterized by factors such as rapid economic growth, increasing levels of foreign investment, and evolving financial infrastructures.

When it comes to IFRS reporting and disclosure requirements, there are certain differences to consider between emerging capital markets and developed markets:

  1. Adoption of IFRS: Many emerging capital markets have adopted or are in the process of adopting International Financial Reporting Standards (IFRS) as their primary accounting framework. However, the degree of adoption and implementation can vary, and some jurisdictions may have modifications or carve-outs to accommodate local reporting practices or specific regulatory requirements.
  2. Level of Development: Emerging capital markets may have less developed financial infrastructures, including accounting and auditing professions, regulatory bodies, and enforcement mechanisms. This can result in challenges related to the quality and consistency of financial reporting and disclosures.
  3. Complexity of Transactions: Emerging capital markets may experience a higher proportion of complex transactions, such as business combinations, joint ventures, or specialized industries. These transactions might require additional guidance or interpretation in applying IFRS standards.
  4. Local Accounting Practices: In some cases, local accounting practices prevalent in emerging capital markets may differ from IFRS requirements. This can be due to cultural, legal, or historical factors. Harmonizing these practices with IFRS standards can pose challenges and require additional disclosures or explanations.
  5. Availability of Professional Expertise: Emerging capital markets may face a shortage of accounting professionals with expertise in IFRS reporting and disclosure requirements. This can impact the quality and consistency of financial statements and increase the risk of misinterpretation or non-compliance.
  6. Regulatory Environment: The regulatory environment in emerging capital markets may be less mature or stringent compared to developed markets. This can result in variations in enforcement, monitoring, and penalties for non-compliance with IFRS reporting and disclosure requirements.

While there may be differences between emerging capital markets and developed markets in terms of IFRS reporting and disclosure requirements, efforts are being made to enhance convergence and consistency globally. Organizations such as the International Accounting Standards Board (IASB) work towards improving the application of IFRS standards and addressing specific challenges faced by emerging capital markets.

It is important for companies operating in emerging capital markets to stay updated on any local modifications or interpretations of IFRS requirements. Engaging qualified accounting professionals, conducting regular training programs, and maintaining effective internal control systems can help ensure compliance with IFRS reporting and disclosure requirements in these markets.

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