International standard

Commission announced its plans to force US companies to switch from the General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS). In the US, GAAP are the accounting procedures that companies are required to follow when generating the company’s financial statements. (Investopedia, n.d.) While the IFRS is the international accounting standards in which business transactions are reported in financial statements. The IFRS provides a common accounting…

ASTM STANDARDS Short introduction – ASTM standards are consensus standards for systems, services, materials and products. ‘ASTM International’ is one of the largest voluntary standard developing organization in the world. It is a non-profit organization that provides a forum for the development and publication of international voluntary standards. There are approximately 12,575 ASTM standards that operate globally. TESTING ASTM STANDARDS- Scope- There test methods help in the determining of…

globalization has resulted in a global economic integration process. Following the development trends of economic globalization, economic communication is becoming more and more frequent. The language of accounting such as financial report used by international society generally, plays an important role in the process of economic globalization. At the same time the people involved are having a higher demand for it. Bushman (2003) argues the quality of the accounting information, especially the…

rules-based accounting standards under the U.S. Generally Accepted Principles, with principles-based accounting standards under International Financial Reporting Standards, adoption of IFRS is inevitable. Leading the push for a single set of high-quality International accounting standards is the U.S. Securities and Exchange Commission (SEC), a government appointed body. The SEC’s call to action has prompted the shift away from U.S. GAAP toward the globalization of accounting standards through a…

frameworks in a bid to enhance uniformity and consistency in financial reports. Different countries all over the world have been evident to adopt varying standard that govern the presentation and recognition of the items in financial reports. However, with the current trends towards globalization, companies in the US have grown interests in embracing standards that govern MNCs and global firms. It is however worth noting that, despite the overwhelming advantages associated with this…

would work toward convergence of existing U.S. standards not included in the convergence project to IFRS. This, according to Beswick, would ensure that existing guidance was appropriate for U.S. companies on a standard to- standard basis; when the IASB would issue new standards, FASB would decide whether to adopt them. As described in a May 2011 SEC staff paper, Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for…

Although the International Financial Standard Reporting (IFRS) of the International Accounting Standard Board has gained strong support worldwide, IFRS should not be adopted as a global reporting standard. First, the IFRS adoption does not cause rising of globalization, as it supporters may have claimed. Second, IFRS is not superior to other national general accepted accounting principles (GAAP), in particularly to the U.S. rules-based GAAP. Third, IFRS fails to deliver uniformity as a…

The article titled “The Going Concern Assumption: Critical Issues for Auditors” written by Bor-Yi Tsay and Sean Chen found in the CPA Journal talk about the going concern issue to how it affects auditors and the challenges that auditors risk in issuing a going concern or not. As Bor-Yi and Sean Chen focus on this article “is to present the relevant issues surrounding the topic of the going concern assumption in financial reporting and auditing.” Bor-Yi and Sean Chen started their article by…

1. PRE-IFRS development factors, cultural dimensions and accounting values of Japan and China The following four main PRE-IFRS development factors have the biggest impact on international business accounting practices: source of finance, legal system, taxation system and political and economic ties (Meek & Saudagaran, 1990). Once you know a nation’s PRE-IFRS developmental factors, particularly Source of Finance, then you are able to predict the cultural dimensions that will be in place as they…

Imagine a world without accounting. Would businesses still be able to operate and function? How would they know if they know what Would businesses still exist. Accounting information is a fundamental part of accounting it allows businesses to know where they financially stand. Accounting is a system that was specifically constructed and developed to record data, the field of accounting has developed over the years and is a key part of keeping society in order; it is a vital tool. The objective…