International Accounting Essay

992 Words Apr 2nd, 2013 4 Pages
1.a) Achievements and Failure – Harmonization Process – EU & IASB
International business are no longer confronted only with Accounting problems, which ends at domestic borders. When companies, equity, or capitials cross borders they are confronted with new cultures, challenging new laws and differences in political systems. Besides that there are the differences in Accounting Standards abroad. For example there are the US gaap and IAS.
The lack of similar Accounting Standard led to problems in comparing financial datas and informations. Another issue is that not all financial statements or Accounting Standards are accepted in all stock exchanges. Example, companies who would like to be listed in New York Stock Exchange, have to
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This emerging market countries (EMCs) has unrestrict mobility of finance and capital with minimum harmonization of national prudential and supervisory systems. Their poor quality of control, monitory, and standard reporting is perceived as a major threats to the stability of the entire global financial system. The current standards and codes modeled by advance industrialized countries, particularly EU and IASB fail to address specific concern and needs of less developed countries. 6- Moreover, while International Standards impose new obligation and costs on EMCs, they are made without adequate representation and involvement of these countries. 7- IASB or IASC has no authority to enforce standards, the directives stills prevails. 8- Major economic power, example, USA, still prefer to adopt their own gaps and not IASB or standards or directives, due to failure to address certain specific accounting issues, example, foreign currency translations, or provision for cash flow statements.

IASB and EU-success :- 1- The directives were implemented by all member countries although some took their time, example Italy. 2- The issue of fourth directives led to several changes in the accounting practice in member states. 3- The directives were legalized and prescribed by law. 4- The stock exchange had set minimum standards for listed companies but the requirement of the 4th directive apply to

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