1 / 7

International Accounting

International Accounting. Diversity in Financial Accounting Practices. Pre 1929 US: Superficial state laws with weak Accounting & Reporting requirements Code Law Countries: corporate laws with weak Accounting & Reporting requirements Post 1930

cael
Download Presentation

International Accounting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. International Accounting

  2. Diversity in Financial Accounting Practices • Pre 1929 • US: Superficial state laws with weak Accounting & Reporting requirements • Code Law Countries: corporate laws with weak Accounting & Reporting requirements • Post 1930 • Fair presentation/full disclosure countries created committees of professionals • CPAs & CAs recommended GAAP • SEC enforces in US; courts in UK • Corporate laws became prescriptive in Code Law countries

  3. Diverse Accounting & Reporting Procedures/Rules • Standard Setting • Private sector: users and preparers • Public sector: government agencies • Environmental variables • Use of a particular financial accounting model • Process of setting national GAAP • Conservatism

  4. Differences in Measurement & Disclosure • Account values • Cash & cash equivalents • Currency translation • Other • Inventories • Depreciable assets • R&D • Deferred taxes • Income/Loss measurement • Gains & losses direct to B/S • Secret & legal reserves

  5. Specific Examples • Goodwill • Capitalize • W/O amortization • W/ amortization: to income or to equity • Write off to equity • Income smoothing: predominant in code law countries • Provisions?? • Reserves?? • Asset valuation • Historical cost • General purchasing power • Current cost accounting

  6. Consequences of Diversity • Corporate Management • Domestic corporations • MNCs • Investors & Creditors • Stock Market regulators • Investor protection • Market quality (fair & efficient trading) • Accounting Professional & Standard Setters

  7. Accounting Harmonization • International Accounting Standards Committee • International Federation of Accountants • European Union • Securities & Exchange Commission • Financial Accounting Standards Board

More Related