International Accounting - The Issues

Slides:



Advertisements
Similar presentations
Development in International Accounting Standards Setting Jamie Wang Associate Professor University of Wisconsin-Parkside.
Advertisements

International Accounting and Multinational Enterprises 上海金融学院会计学院 财务管理系 王 纯.
Chapter 1 The Pay Model.
International Accounting, 6/e
The Political, Legal, and Regulatory Environments of Global Marketing
Harmonization and International Accounting Standards
Worldwide Accounting Diversity
© The McGraw-Hill Companies, Inc., 2001 Slide 11-1 McGraw-Hill/Irwin 11 C H A P T E R Worldwide Accounting Diversity and International Standards.
Financial Reporting – Evolution of Global Standards Chapter 9.
1 Matakuliah: F0142/Akuntansi Internasional Tahun: 2006 Session 10 International Financial Statement Analysis.
Worldwide Accounting Diversity and International Standards
© Lloyd’s Regional Watch Content Guide CLICK ANY BOX AMERICAS IMEA EUROPE ASIA PACIFIC.
Evolution of International Standards By: Associate Professor Dr. GholamReza Zandi
International Business, Diversity and Comparative Accounting
The Global Economic Environment
1 ECONOMICS 3150M Winter 2014 Professor Lazar Office: N205J, Schulich
Chapter 17 International Financial Statement Analysis.
5BUS0253 FS 2 week 1 Financial Statements 2 Lecture 1.
Frédéric Gielen Lead Financial Management Specialist Europe and Central Asia Region THE WORLD BANK The Relationship between Corporate Income Tax Reporting.
International Accounting and Multinational Enterprises
SAFJP Lic. Francisco Astelarra Superintendent March 2001.
Accounting in the International Business
Chapter 1 Electronic Presentations in Microsoft ® PowerPoint ® Prepared by James Myers, C.A. University of Toronto © 2008 McGraw-Hill Ryerson Limited.
® IASB - Objective … is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent.
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Capitalist. Main Points In a capitalist or free-market country, people can own their own businesses and property. People can also buy services for private.
The Global Economic Environment The Coming Boom Wealthy Industrial Countries Developing Countries East Asia South Asia Latin America
© The McGraw-Hill Companies, Inc., 2004 Slide 11-1 McGraw-Hill/Irwin Chapter Eleven Worldwide Accounting Diversity and International Standards.
Managing Transnational Corporations Accounting in the International Business.
Chapter 15 Development of the profession of O&M around the world.
1 A ‘single CSD access point to multiple market information AECSD Conference 9 September, 2010 Dan Kuhnel, Director, New Issues & Fixed Income Securities.
Chapter 3 Comparative International Financial Accounting I.
Accounting 6570 Worldwide Accounting Diversity. Accounting Diversity Differences exist everywhere! –Language –Currency –Terminology –Reports required.
Why is there a need for a European Association for Language Testing and Assessment? Charles Alderson, Lancaster University, Coordinator of ENLTA.
The United States The Economy. What is GDP ? Gross Domestic Product (GDP): The total market (or dollar) value of all final goods and services produced.
The Advanced Program in Accounting and Auditing Regulation Module 22 General Purpose of Financial Statements and Tax Reporting Stefano Marchese FEE Vice-President.
OAKWOOD CAPITAL MANAGEMENT LLC Annual Return (%) Equity Returns of Developed Markets Boxed Return is highest return for the year. In US dollars. Source:
Ana Cristina Hirata Barros Research / Operations Analyst Europe and Central Asia Region THE WORLD BANK Public Availability of Financial Statements by Non-listed.
Chapter 5 International Financial Statement Analysis.
Financial Reporting in Different Countries Saturday, July 09,
Tax Policy Challenges in a Changing World. Unintended Consequences of Tax Rob Marston, “Window Tax”, 1 September 2010 uploaded via Flickr, creative commons.
International Financial Reporting Standards. IFRS? International Financial Reporting Standards (IFRS) are principles-based standards, interpretations.
Chapter 2: Worldwide Accounting Diversity
Global overview partner work permits* Sept ‘16
International Accounting, 7/e
Certification CS-100/ CSE-200 /CSC-1
Chapter 3 Comparative International Financial Accounting I
International Accounting, 6/e
Introduction to The Open Group
International Accounting, 7/e
Financial Reporting – Evolution of Global Standards
Financial Reporting – Evolution of Global Standards
Snapshot of Global PV Markets
International Accounting, 6/e
The 1680 Family’s Reach.
The European Perspective Liam McQuaid Managing Partner
Locations where Black Panther was released in the theaters in 2018.
Citi Virtual Card Accounts – Continued Global Expansion
Financial Reporting – Evolution of Global Standards
Status of EQ-5D-5L Valuation Using Standardized Valuation Methodology
International Accounting and Multinational Enterprises 5/e
Sourcing. Costs. HARDWARE + SERVICE
The Relationship between Corporate Income Tax Reporting and Financial Reporting: A Pan-European Perspective in the Context of Adoption of IFRS Frédéric.
International Developments in Accounting ACFI 3217
Chapter 8: International Groupings History of the EU: Timeline
IBM's Geographical Structure and where IBM Global Financing has clients IBM Global Financing, the world's largest IT captive financier, has a total asset.
International accounting
Issues in International Accounting Research
2006 Rank Adjusted for Purchasing Power
European Accounting and Accounting Harmonization
Presentation transcript:

International Accounting - The Issues National differences lead to different accounting systems Reasons for differences in financial reporting Attempts to reduce national differences International analysis of financial statements Country studies

National differences lead to different accounting systems Importance of family Family run businesses(e.g. France) Maximisation of profit not necessarily the main priority The firm has a responsibility to society (e.g. Germany) Separation of ownership and control Need for a “true and fair view” (e.g. UK)

Why do Accounting Systems Vary from Country to Country? The national legal system The way in which industry is financed The relationship between the tax and the reporting systems The influence and status of the accounting profession The extent to which accounting theory is developed Accidents of history Language

The national legal system Roman law system set of defined rules code of accounts little flexibility Common law system encourages flexibility case law companies acts - true and fair view in 1981 the European Fourth Directive was incorporated into UK companies legislation a specified format of accounts for the first time

The way in which industry is financed USA, UK, and Sweden heavy reliance on individual investors (equity) registered shareholders active stock markets developed need for stewardship accounting France and Germany much less equity investment more loan capital heavy bank involvement bearer shares

The relationship between the tax and the reporting systems USA and UK separate rules for computing taxable profit and profit for financial reporting purposes tax rules more prescriptive financial reporting rules require more disclosure France and Germany tax rules effectively become the financial reporting rules

The influence and status of the accounting profession Development of capital markets leads to the development of the accountancy profession The need for audit in an advanced capital market environment accountants held in high esteem In countries where capital markets have not developed (Eastern Europe) accountants seen as book-keepers Accountancy profession develops accounting standards

The extent to which accounting theory is developed Accounting theory can influence accounting practice Theory may be developed at an academic or practice level Netherlands - accountants receive both academic and professional training UK - too many practising accountants see academic development as irrelevant to practice

Accidents of history Occupation during war Membership of the EU Effects of scandals associated with company failures

Language Difficulty in translating concepts from one language to another

IASC established in 1973 by the accounting professions in: ( now the IASB ) Japan Mexico Netherlands UK USA Australia Canada France Germany Ireland

Support around the world International Accounting Standards International Financial Reporting Standards Support around the world

Some countries that have adopted IASs / IFRSs Kenya Kuwait Malta

Some countries that have permitted listed companies to prepare their consolidated accounts in accordance with IASs / IFRSs Austria Belgium Germany France Finland Italy Luxembourg Russia Switzerland

Some countries that have permitted foreign listed companies to apply IASs / IFRSs without reconciliation to national GAAP Netherlands New Zealand Norway South Africa Sweden

Some countries that have permitted companies to apply IASs / IFRSs provided there is a reconciliation to national GAAP Denmark Hong Kong Poland Spain USA

Some countries that have taken IASs / IFRSs into account when formulating their own financial reporting standards Australia Malaysia Singapore Sri Lanka UK

A strong desire for international harmonisation Reduce costs for the preparation of accounts Reduce pressure on auditors Reduce criticisms of financial regulators Improve decision usefulness for investors

International Analysis of Financial Statements Language Format and extent of disclosure Currency Valuation and profit measurement Taxation

Major financial reporting issues Accounting for groups of companies Accounting for assets Accounting for inventories Substance over form Capital instruments Accounting for employee costs