The public confidence can be restored if all the companies in America start to follow conceptual framework. It is important as the main aim of financial report is to form a basis for the Conceptual Framework along with many other features of the Framework emerging from it and to give financial information related to the entities of reporting which are valuable to the current and potential lenders, investors and some other creditors which help them in making decision of supplying resources to the entity. Also, user are directed who supply resources to entity of reporting but they don’t have capability to force the entity for giving them information which they need to make decisions related to their investments. The conceptual framework designed by regulatory bodies play important role in transparency and accountability of this information.
I also agree with other student post that FASB and IASB concluded that it is important to guide and impart structure to financial reporting and accounting. Infact National standard setters used this result to prepare a model which can be used as manual or guidelines for preparing financial reports as per our financial management homework help experts. This conceptual framework has helped standard setters to decide best solution for preparing financial report and achieve their goal without any difficulty. When no hints are given then the standards are made by members of standard setting committee on the basis of conceptual framework.
When the standard setting committee creates standard according to their individual views then they are not applicable everywhere. And when the members change they put different views on different issues.so the same issues identified by different members and at different time may have different conclusions. So on being produced individual framework by each and every member it should be deeply rooted in fundamentals within, avoiding completely personal opinion which seems to be set of rules. Therefore FASB and IASB decided to create some concepts which would than become the standards. These concepts would not be just on the basis of some set of rules but must be on the basis of some principles which in turn help in restoring public confidence in corporate financial statements.
Walmart needs to get low-pay individuals by offering the job of checking financial accounts into its stores. It has made an adversary of banks, who are itching to get the retail titan off their turf. Americans don’t have faith on bankers; neither do the bankers have any trust on Walmart. America’s largest retailer has for a long itching to be something else: a giant of the financial business.
Investors, their antennae caution to rivalry, have steadily attempted to hinder the superstore from turning into federal bank sanction as far back as five years. Walmart has evaded its opponents by getting through backdoors: earlier this year, cash transfers and previously via pre-paid cards. Presently Walmart has an obsession of morphing into a bank, straight up with others trying to open its store in New York City as per online operations management essay writing help experts. The hard-won advancement of Walmart has come with associations, for Blue Bird pre-paid cards with American Express as well as with Green Dot for the cash transfers and checking financial accounts.
These are additionally not clients that investors have demonstrated any ability to battle for, and which investors really need. Walmart has endured a cataclysmic departure of lower pay Americans since the time that cuts to food stamps occurred towards the end of 2013. By offering less-cost banking venture, the retailer would like to provide them a motivation to drop by the superstores. A non-branch Bank of Walmart named the ‘digital only’ provides three functions. Primarily, it brings the unbanked, low-waged family into a Walmart store. At this time, that unbanked client is strolling or utilizing public means of transport to purchase basic needs and staples from Dollar Tree, Dollar General, and Family Dollar.
Secondly, it provides Walmart access to client information,” he continued. “Walmart blossoms on information. By getting a better insight into its customer’s financial base, and while they are purchasing, Walmart could make for more gainful usage of one of its biggest positive resource: its inventory“. And lastly, it provides the association a new stage to advertise across its social media, website and TV. The only inquiry is whether the plan will work. Regardless of the fact that if bankers grouse, low-wage shoppers are liable to discover a Walmart record engaging. Hence, Walmart is going to provide benefits to customers but at the costs of big banks businesses.