1. International Accounting A User Perspective 2 nd Edition by Shahrokh M. Saudagaran

2. Chapter 1 FINANCIAL REPORTING IN THE GLOBAL ARENA

3. Learning Objectives: 1.Identify the main environmental variables that shape accounting. 2.Recognize the differing role of accounting throughout the world.

4. Learning Objectives: 3.Demonstrate the economic effects of accounting diversity. 4.Appreciate the benefits of classifying countries into accounting clusters.

5. Chapter Outline: I.Introduction II.Interaction between Accounting and its environment 1) Nature of Capital Market

6. II.Interaction between Accounting and its Environment 2) Type of Reporting Regime 3) Type of Business Entities 4) Type of Legal System

7. II.Interaction between Accounting and its Environment 5) Level of Enforcement of Regulations 6) Level of Inflation 7) Political and Economic Ties

8. II.Interaction between Accounting and its Environment 8) Status of the Accounting Profession 9) Existence of a Conceptual Framework 10) Quality of Accounting Education

9. III.Diverse Roles of Accounting in Countries Policy Choices in Accounting IV.Effects of Diversity on Capital Markets

10. V.Classifications of Financial Accounting and Reporting Systems Review of Selected Classification Studies

11. VI.Major Challenges Facing Accounting Globally 1) Global Harmonization 2) Quality of Financial Reporting in Developed and Emerging Economies

12. VI.Major Challenges Facing Accounting Globally 3) Social and Environmental Reporting 4) Financial Reporting in the High Technology Era