Professional Documents
Culture Documents
International
Accounting
Topic 1
Introduction to International
Accounting
What is required
to understand Comparative International Accounting?
Essential Reading
Text Book: Chapter 1: especially pages 1-15, 18-21 and
24-26
to be able to-
The US, and the US stock market use the best known set of
rules, called Generally Accepted Accounting Principles
(GAAP). This has had a significant impact globally.
Growth of MNEs
These have all affected the financial reporting and transfer of accounting
technology from one country to another
8
Since the collapse of Enron, the demise of Arthur Andersons auditors, the world
has changed how it looks at financial reporting. But the US remains very influential
Accounting rules & practices have been influenced by the harmonization program
of the EU, and its adoption of IFRS
MNE companies like Royal Dutch Shell, BP, & Vodafone operating
around the world bring ambiguity to concept of home country
12
13
14
Across the EU, countries adopted the Euro with the exception of the Pound
Sterling in 1999
The worlds financial system become toxic after 2008/9 financial crisis.
The result was many countries want a new Bretton Woods arrangement
The crisis put renewed focus on regulations of the stock markets because the
use of market valuations in accounting were blamed
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18
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Review topic 1
Research links:
www.accountingeducatin.com
www.ifr.org
www.worldbank.org
www.ifac.org
IFRS
GAAP
Harmonization
Accounting ethnocentrism
Question to consider
Why is English the leading
language of international
corporate financial
reporting?
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