Criteria Essay

3285 words - 14 pages

Chapter 2
Worldwide accounting diversity

Chapter Outline

I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP.

II. A variety of factors influence a country’s accounting system.
A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have a non-legislative organization that develops accounting standards.
B. Taxation – financial statements serve as the basis for taxation in many countries. In those countries with a close ...view middle of the document...

B. Companies interested in obtaining capital in foreign countries may be required to provide financial statements prepared in accordance with accounting rules in that country, which are likely to differ from rules in the home country.
C. Investors interested in investing in foreign companies may have a difficult time in making comparisons across potential investments because of differences in accounting rules across countries.
D. There is a lack of quality accounting standards in some parts of the world. The 1997 East Asian financial crisis was at least partially attributable to a lack of high quality accounting in the region.

IV. There are two major classes of accounting systems, the micro-based class and the macro-uniform class.
A. The micro-based class of accounting is found in common law countries, where there is a separation of accounting from taxation, and shareholders are an important source of financing. Information is developed primarily for equity investors, with adequate disclosure serving as a major objective.
B. The macro-uniform class exists in code law countries, where accounting serves as the basis for taxation, and families, banks and government are the major providers of capital. Income measurement is more conservative and disclosure is lower than in the micro-based class of countries.

V. National culture is another factor long thought to influence a country’s accounting system. Using Hofstede’s (1980) societal value dimensions, Gray (1988) developed the following hypotheses:
A. Conservatism hypothesis – countries high on uncertainty avoidance and long-term orientation, and low on individualism and masculinity will foster a more conservative approach to measurement.
B. Secrecy hypothesis – countries high in power distance, uncertainty avoidance, and long-term orientation, and low on individualism and masculinity will exhibit more secrecy (less disclosures) in accounting reports.
C. Research results provide some support for these hypotheses, especially the hypothesis that culture affects the level of disclosure in accounting reports.

VI. Nobes introduced a simplified model of the reasons for international differences in financial reporting in 1998. In this model, the class (A or B) of accounting used in a country is a function of the strength of the equity-outsider financing system, which is a function of a nation’s culture, including its institutional structures.
A. Class A accounting systems are oriented toward providing information to outside shareholders (less conservative, more disclosure). This is consistent with the micro-based class of accounting.
B. Class B accounting systems are geared to taxation and creditors (more conservative, less disclosure, accounting follows tax rules).
C. Nobes suggests that countries in Class B countries that are interested in competing for equity capital will adopt a Class A accounting system if allowed to do so.

...

Other assignments on Criteria

Occs Essay

330 words - 2 pages Choose an organisation that has gone through a change process and critically evaluate the management of that change process by the consultant(s) or change agent(s) involved. The full assessment criteria is overleaf but please note the following information :- Context In order to evaluate the management of the process it is necessary to understand the situational context to assess how appropriate the consultant/change agent approach was

Religion Essay

254 words - 2 pages Week 4 Assignment 1 Click the link above to submit your assignment. "Report on the Religious Life of Planet Earth"   Assume you are from another planet and have been sent to Earth to determine if it is a religious planet or not (something very important to your people). Your superiors are expecting a report back from you. Write a 2–3 page (approximately 500–750 words) “report” that addresses the following: * Discuss the criteria

How To Study Case

378 words - 2 pages Criteria and Alternative Solutions • Identify criteria against which you evaluate alternative solutions (i.e. time for implementation, tangible costs, acceptability to management) • Include two or three possible alternative solutions • Evaluate the pros and cons of each alternative against the criteria listed • Suggest additional pros/cons if appropriate V. Recommended Solution, Implementation and Justification • Identify who, what, when, and

Sdfsdf

266 words - 2 pages 1. Should Trans-Share account for the sale of the fractional interest in the airplane according to ARC 840 (Accounting for Leases) or ARC 606 (Revenue Recognition for Customer Contracts)? Provide citation and explain in your own words. Based off the Codification, Trans-Share should account for the sale according to ARC 606. Citing 840-10-1, a criteria for lease classification is derive from the transfer of all substantial benefits and risks

Ratan Tata

966 words - 4 pages , concepts, models and research evidence should be used as key to open the case. “Course language” should be integrated with “case language”. High marks require skilful integration of concepts and case evidence. This section should comprise 50% of the report. (three pages) 4. Criteria of Evaluation: Goals (Objectives/Performance Targets/KPI’S/Decision Criteria), and Their Time Frames. Clear, concise statement of the

Critical Thinking

805 words - 4 pages or mine? Critical Thinking Involves Standards Critical thinking involves having my thinking measure up to criteria. I can think about something accurately or inaccurately. I can use evidence that is relevant to an issue or irrelevant, or somewhere in between. When I reason out and try to understand the main ideas in a course I’m taking, I can do so on a superficial level or I can try to understand them deeply, trying to get at the heart of the

Wgu Mgt1 Project Charter

673 words - 3 pages Genrays Project Charter Project Charter Template Human Resources Information System (HRIS) Project Charter GenRays September 11th 2012 Table of Contents Project Title Purpose Description Objective Success Criteria or Expected Benefits Funding Major Deliverables Acceptance Criteria Milestone Schedule Approval Requirements Project Manager Authorized by  Project Title Human Resources Information System

Crew Management On Cruise Ship

906 words - 4 pages Report Question: Crew Management of Super Star Virgo Study the crew strength onboard Super Star Virgo. Elaborate on the recruitment methods and criteria in the recruitment of local and foreign crew members by Star Cruise. What are the training and development programmes provided by Star Cruise to ensure quality service? Identify the benefits enjoyed by the crew members. Evaluate and support with reasons if more can be done to

Let1 Task 4

1592 words - 7 pages LET1 Task 4 Christopher Thomas, 215442 WGU Business Management Program A. In the given scenario, the company’s evaluation contains three known evaluation criteria: Friendliness, neatness of workspace, and attitude; and the manager is to rate the employee in these categories. While the complete evaluation form is not available, based on the known information, there are concerns present about the current form being used. First, from what is

Justification Report

1678 words - 7 pages skating options for the upcoming birthday party. An analysis of both Skate and Fun Zone and Cavalier found that, although both alternatives offered great options, Cavalier better met our chosen criteria in cost, food options, and operating time. It is therefore the recommendation that we utilize Cavalier for my daughter’s upcoming birthday party. Thank you for allowing me the opportunity to research potential party choices. I appreciate

Accounting

696 words - 3 pages 2014 a) Phil N. Tropic should recognize this as the asset. In the Conceptual Framework (CF) of IASB, it states that an item can be recognized as the asset if it meets the definition of the asset and meets the recognition criteria at the same time (IASB, 2014). And the definition of the asset in CF is “a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity

Similar Documents

Jamba Juice Problem Statement And Criteria

750 words - 3 pages Problem Statement and Criteria Jamba Juice PROBLEM STATEMENT In the past, Jamba Juice Company had a primary growth strategy of increasing brand awareness through accelerated franchise development and penetration of existing markets. However, due to increased market saturation, Jamba Juice has had a difficult time competing with other premium quality blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages, and

Law And Governance Essay

451 words - 2 pages literature, citation and bibliography using proper APA format. Please use the assignment forum to post your assignment. Upload your assignment before or on the due date: October 20th, 2014 at 10:00 p.m. EST CRITERIA FOR MARKING (25 marks) Interpretation of Assignment (4 marks) Understanding of Principles of Reflective Practice (5 marks) Reflective Quality of Contributions (4 marks) Completed Activities (8 marks) Authenticity/Credibility (4

Paper

267 words - 2 pages , skills, qualifications and knowledge meet the key selection criteria listed in the Position Description. A covering letter quoting the advertisement reference number is required. Please note: It is essential that you address the key selection criteria specifically in your application. This will enable the selection committee to review your experience, skills, qualifications and knowledge in relation to the selection criteria. Applications that do

P1 Unit 2 Business Dimploma Btec

564 words - 3 pages emphasis is on the attributes that are required and it is important to get this right. Once the criteria have been established and the post advertised, they cannot be changed. An appointment panel or committee should not turn from the person specification during the selection process, as adding or removing criteria at a later stage could lead to claims of discrimination. Explain the purpose Essential v Desirable When constructing a