Harmonization of Accounting Standards - 4616 Words

Abstract Discussion on harmonization is started quite long time ago. Its impact on the countries economy is good or bad is the central idea of this essay. This essay is written specifically on the accounting standard used in Australia. This essay starts with introduction on various topics such as conceptual framework, IASB, Sacs then it discussed the issue of harmonization. Harmonization will have positive impact on the economy because it attracts overseas investors to invest in Australia. This essay covers difference between conceptual framework developed in Australia and IASB framework. There are given lot of difference such as treatment of non for profit entity is same as the public entity in A-IFRS. Reporting entity concepts and†¦show more content†¦R., and S. Jones, 2002 Conceptual framework is like a constitution for standard setting process. It is the concepts to define nature, subject, and purpose, of the financial report. it has many advantages to have a conceptual framework for than company for example when there is a conceptual framework implemented in the country then all business bodies follows that framework and so there is better communication between different business entities. Otherwise it is not possible if there is no conceptual framework in the country. The AARF (Australian accounting research foundation) has discussed many different benefits of having conceptual framework as follows all financial reports will be in consistent with others. Setting conceptual framework is also economical for the country. More advantages are given below: †¢ Those who made the framework are now more responsible and accountable for their actions .entities are now more accountable if they do not proved any disclosure or giving false information. CF provides a means of communicating key concepts to financial report to preparers and users, as well as providing guidance to reporting entities when no specific standards address a particular issue. †¢ Financial reports made by the help of conceptual framework are consistent and more in logical manner so that there is more understandability in the financial reports. †¢ Because standard-setters will have harmony on many important issues, theShow MoreRelatedAccounting Theory -Harmonization of Standards2779 Words   |  12 PagesHarmonization of International Accounting Standards Contents A. Introduction Objective.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 B. Why Harmonization of international accounting standards required†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 C. Factors influencing any Country’s Accounting Standards†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..6 D. Role of International Accounting Standard Board (IASB)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..8 E. Moving towards Harmonized International Accounting Standard†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.9 F. Obstacles and Benefits of the harmonization of InternationalRead MoreHarmonization of Accounting Standards Through Internationalization5845 Words   |  24 PagesVol. 2, No. 2 International Business Research Harmonization of Accounting Standards through Internationalization Nikhil Chandra Shil, ACMA (Corresponding Author) Department of Business Administration East West University 43, Mohakhali C/A, Dhaka – 1212, Bangladesh Tel: 9887989(Off.) ext 253, 01819289589 (M) Dr. Bhagaban Das P.G. Department of Business Management, Fakir Mohan University P. O.: Balasore, Pin.: 756019, Orissa, India E-mail: bhagaban_fm@yahoo.com Alok Kumar Pramanik DepartmentRead MoreHarmonization of International Accounting Standards: Advantages Disadvantages, Obstacles Solutions3944 Words   |  16 Pages Harmonization of International Accounting Standards: Advantages Disadvantages, Obstacles Solutions   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As the trend for globalization in business becomes increasingly important for economic success, many issues arise through international business practices for corporations, governments, and investors.   Due to the many conflicting codes and practices that exist between various national financial accounting standards throughout the world, international business becomes harder to analyzeRead MoreExamine the Advantages and Disadvantages for China of Harmonization of Accounting Standards Under the Current Economic and Social System1762 Words   |  8 Pagesdisadvantages for China of harmonization of accounting standards under the current economic and social system. With the development of economic globalization and capital markets, accounting standards based on a national system cannot satisfy the needs of users whose decisions are increasingly international. Therefore harmonization of accounting standards has become an inevitable choice for many countries. The Chinese government has introduced four sets of accounting standards and efforts continue toRead MoreAdvantages and barriers of harmonizing International Financial Reporting Standards throughout the world1065 Words   |  5 Pagesinternational trade and capital flows that has occurred over the previous two decades has increased the desire to harmonise accounting standards across the globe. The appeal of international accounting harmonization has been extensively discussed. Numerous academics Ali, J M (2005), Adhikari and Tondkar (1992), Saudagaran (1997) argue that adopting International Financial Reporing Standards (IFRS) would bring great benefits to society, such as comparability of statements between countries, progression andRead MoreThe Importance Of Accounting Standards For Business Affairs1049 Words   |  5 Pagesthat’s understandable globally and comparable across the international boundaries. IFRS initially was formed to harmonize accounting across European Union, but the value of harmonization was so overwhelming and attractive around the world that became a benchmark globally. Importance of Accounting Standards In this assignment I want to explain the importance of the Accounting standards. As the world economy is becoming integrated and globalization is becoming a universal phenomenon, more and more businessesRead MoreMgt4045967 Words   |  4 PagesWRITE-UP DUE: Thursday, 10/28/10 1. Explain the rationale for the global harmonization of financial reporting and disclosure requirements. -Make the financial statement more comparable across the global market so investors can invest their capital in more efficient comparable. 2. Identify two groups that are exerting pressure for pursuing global harmonization. How do these two groups stand to benefit from harmonization? -Investors are concerned with the reliability and comparability ofRead MoreDifferences Between Gaap And Ifrs1442 Words   |  6 PagesIntroduction There are two distinct methods of accounting for finances in the business world. These two methods are the methods both prescribed by the U.S., which is known as the generally accepted accounting principles (GAAP), and that which is used by the international community known as international financial reporting standards (IFRS). GAAP is regulated by the financial accounting standards board (FASB) while IFRS is regulated by the international accounting standards board (IASB). These two methods areRead MoreUniversal Accounting Standards954 Words   |  4 PagesUniversal Accounting Standards Issue The internationalization of business activities has increased exponentially over the past 3 decades. Because the accounting standards and practices of different countries have developed in response to diverse environments, accounting has developed with strong national accents . As a result, multinationals with branches and investments in a wide array of countries find it difficult to achieve a consolidated financial report. Further, investors in these multinationalsRead MoreRomania’s Post Communism Accounting Practices and the Effects of Adapting Ifrs for Smes1725 Words   |  7 PagesPost Communism Accounting Practices and The Effects of Adapting IFRS for SMEs â€Æ' Abstract Romania, located in southeastern European, was heavily influenced by the Russian Soviet Union as a socialist republic between 1947 and 1989. With becoming a capitalist country in 1989, its accounting practices began its transformation. The purpose of this paper is to analyze Romania accounting practices post its revolution. The paper discusses three major accounting practice conversions