Globalization and the accompanying investment facilities available have
resulted in rapid popularity for international financial reporting
standards (IFRS). However, differences often exist in terms of what
firms report, and once inconsistency between tax regulations and
financial reporting regulations occur, differences between taxable and
accounting practices are inevitable. This book introduces a new approach
to corporate financial reporting by investigating goal incongruence
(GING) in the context of the principal and agent (PA) setting. The
authors argue that improving the method for the disclosure of
information would not only increase the quality of corporate financial
information and reporting but also reduce the possibility of any GING
arising. This book presents the financial implications of international
accounting and financial reporting standards (IAS and IFRS), presenting
numerous real-life situations, cases, examples and implications to
reveal how GING might influence the implementation of corporate
financial reporting of profit volumes and sizes, which are the leading
drivers of and widely accepted proxies for corporate financial
performance.