The accounting harmonization

Résumé du document

Firstly we will have to consider the relevance of international accounting in history and its requirements to be successfully implemented. Secondly we need to examine the benefits of implementing these international standards. Finally we have to conclude by sighting the significant obstacles with respect to accounting and how it can be harmonized with the current situation of implementing IAS by 2005.

Extraits

[...] Journal of corporate real estate , vol Pg 66 Gbenedio,P., Benson, E., Omolehinwa, E An Analysis of the problems and obstacles to global accounting harmonisation , Managerial Management, Vol Pg 63 Harmonization of international accounting standards paper prepared by the International Federation of Accountants with the assistance of Fédération internationale des bourses de valeurs and the International Bar Association Section on Business Law, publisher : International Capital Markets Group,(1993?) Houston,M., Reinstein,A.,2001,International Accounting Standards and their implications for accountants and US financial statement users, Review of business, Vol.22,Pg 75. Illingworth,B.,William,R The debate world economy needs IAS www.accountancyage.com Radebaugh,Lee H. (Lee Howard),1993, International accounting and multinational enterprises, 3th ed, New York;Chichester:John Wiley & Sons,c Turner,J International Harmonisation ; A professional goal , Journal of accountancy, Pg Wallace, E., Wortmann,R.,2003, Two Gaaps, or not two Gaaps, Pennsylvania CPA journal Vol.72,Pg.22 Wilson, J. (1996) Current Issues in Accounting and Auditing, Wirral, Tudor Business Publishing Zafar I.l, Trini U. [...]

[...] The variety of world accounting practices has been seen by many as significant problem. In fact the problem of analysing accounts from different countries increase finance costs in international capital markets. The cost of an accounting system in an multinational is increased both by the cost of designing and running different accounting systems in different countries, and the cost of adjusting accounts from different countries to the accounting system of the country of the holding company for consolidation. The benefits of International accounting When differences persist within countries, then there is no comparable financial reporting. [...]

[...] Some countries who has yet not develop their accounting system will save lots of money and time by implementing international standards as their national GAAP. Further more governments in developing countries will take benefits of this international harmonization as they will find easier to understand and control the operations of multinational companies. Many businesses wishing to use IAS for all these reasons reviewed above are prohibited from doing so by national law thus, companies can choose to publish IAS financial statement as the supplement to national reporting but the cost and confusion resulting from this dual reporting still severely limits the use of IAS. [...]

[...] In other words, if companies want to be properly prepared, the deadline is effectively in 2004, as companies issuing IAS produce prior year comparatives which means that businesses will have to be able to produce an opening in 1 January 2004 balance sheet under IAS in order to construct their accounts properly. Thus, the deadline is really no more than about 3 months away. However, according to Robert Half surveys shows that the training that is needed isn't happening like it should. [...]

[...] The issues discussed in the earlier congresses mostly were practice oriented. The real next step toward international accounting were in 1950 when Jacob Kraayenhof (1959), founding partner of a major European firm of independent accountants, urges that work on international accounting standards begin. In 1966, Accountant International study group has been formed (AISG) by professional institutes in Canada, the United Kingdom and the United States. It was not until the 10th international congress in Sydney in 1972 that firm proposals were put forward and accepted for means to achieve real progress in International harmonization the result was the establishment of international accounts standards committee (IASC). [...]