why their is a need for Economic Activities?
“Net income” is a very important index of economic activities. There are concerns that IFRS changes properties of net income. Net income will continue to be a useful index of business results, so shouldn’t results of company conduct be properly reflected? Introducing “fair value measurement” causes greater fluctuations in business results, and especially during economic recessions it causes much worse results. We must avoid having estimates of fair value measurement creating greater fluctuations in business results and economic cycles.
We must carefully study the scope to which fair value measurement should apply. Aiming at continuous value creation and stable business results also leads to encouragement of stable investment. There are also opinions that there are effects of changes in business practices of agriculture (agriculture accounting) and the marine shipping industry (lease accounting), and effects on communication between companies and investors due to greater disclosure volume.
For more details on IFRS please read the following article-> IFRS Detail
For more details on IFRS ACCA please read the following article-> ACCA IFRS DETAILS
For fee related things pleases read the following article-> IFRS Fees