Convergence of Accounting standards
The rise in the adoption of IFRS and the slow elimination of local GAAP standards has initiated a new era of accounting advancement. A few decades back, the world was driven by a higher level of accounting diversity. However, with the increase in cross country business and financial exchange, efforts have been focused on eliminating differences in accounting (?zbilgin, Tatli, Ipek & Sameer, 2016; Heckman, 2001; Rodrigues & Craig, 2007). With the ending of such differences, international users of financial statements have been able to experience a wide range of benefits. Research has shown that accounting diversity is not highly beneficial for countries which have an increasing presence of foreign investors and companies. A leading example in terms of accounting diversity is that IFRS and US GAAP. Despite of the large scale adoption of IFRS, USA tends to use its own accounting framework. Accounting diversity still exists in a number.continued(Wordcount of report: 2400 words)
Introduction
Definition of Accounting Diversity
Financial Reporting
Purpose of Financial Reportin
Factors Affecting the Financial Reporting
Economic Influence
Influence of Cultural & Political Variables
Cultural Variables Influencing Financing Reporting
Political Variables Affecting the Financing Reporting
Difference between Common Law and Code Law
Code Law
Common Law
Differences
Effects of Common Law and Code Law on Accounting Standards and Reporting
Harmonization and Convergence
Cost of Capital
Effects of Convergence of Standard on the Cost of Capital
Framework of IASB (International Accounting Standards Board)
Conclusion
DELIVERABLE 3: FINAL REPORT
Introduction:
Blessing for Partnerships:
Advantageous for Parents and Subsidiaries:
Supporting Investment:
Encourage Comparability:
Supportive for Stakeholders:
Support Globalization:
DISADVANTAGES OF STANDARDS:
Change in economic and the political situations:
Cultural Differences
Amendment is expensive
Phases of convergence of the accounting rules
References
Definition of Accounting Diversity
Financial Reporting
Purpose of Financial Reportin
Factors Affecting the Financial Reporting
Economic Influence
Influence of Cultural & Political Variables
Cultural Variables Influencing Financing Reporting
Political Variables Affecting the Financing Reporting
Difference between Common Law and Code Law
Code Law
Common Law
Differences
Effects of Common Law and Code Law on Accounting Standards and Reporting
Harmonization and Convergence
Cost of Capital
Effects of Convergence of Standard on the Cost of Capital
Framework of IASB (International Accounting Standards Board)
Conclusion
DELIVERABLE 3: FINAL REPORT
Introduction:
Blessing for Partnerships:
Advantageous for Parents and Subsidiaries:
Supporting Investment:
Encourage Comparability:
Supportive for Stakeholders:
Support Globalization:
DISADVANTAGES OF STANDARDS:
Change in economic and the political situations:
Cultural Differences
Amendment is expensive
Phases of convergence of the accounting rules
References
