Course: 0142F – International AccountingInternational Convergence of Financial ReportingSession 2
1.Impact on multinational enterprises of the different pressures leading to accounting harmonization and disclosure2.How governments get involved in the harmonization of accounting3.How trade unions and employees are interested in harmonizing accounting 4.Meaning of convergence, arguments for and against international convergence of financial reporting standards5.Development of International Accounting Standards Board 6.Principles-based approach used by the IASB in setting accounting standards7.Framework for the preparation and presentation of financial statement8.Proposed changes to the IASB’s Framework9.IASB’s Standards related to the first-time adoption of International Financial Reporting Standards (IFRS) and the presentation of financial statements10. Support for, and the use of, IFRS across countries11. Issues related to international convergence of financial reporting standards12. Progress made in regard to IASB/FASB convergence project13. Meaning of “Anglo-Saxon” accountingAgenda
1.International Accounting 3rded. Timothy Doupnik & Hector Perera Chapter 3 page 65 – 108. 2.International Accounting 7thed. Frederick D.S. Choi & Gary K. Meek Chapter 8 page 249 - 2763.International Accounting and Multinational Enterprises 6thed. Lee H. Radebaugh, Sidney J. Gray & Ervin L. Black Chapter 7 page 151 - 1844.Intermediate Financial Reporting – An IFRS Perspective. Nelson Lam & Peter Lau Chapter 1 & 2 page 3 - 37Source
•Standardization–Rigid, narrow set of rules–One-size-fits-all approach–Less flexible than harmonization or convergence–Not the current thinking•Harmonization–Standards that are compatible – no logical conflicts–Means the elimination of differences among existing accounting standards•Convergence–Means the gradual elimination of differences in accounting standards–But might also involve a new accounting treatment not in any current standard–Involves cooperative efforts of IASB and national standard-setters–Now the preferred term over harmonizationMeaning of convergence
Pressures for Harmonization
•Government involvement in accounting determination varies across the world•Do governments really use corporate reports?–Information needed by governments is often too extensive to include in the report–Governments can demand whatever information they need•Information needs are extensive and confidential–These things suggest governments may not be important users of corporate reports–Is this a paradox?•Explained by situations where governments might be users1. Governments
•Use reports, along with segmental information, to check performance of local subsidiaries of MNEs•Governments wish to monitor MNE operations as a whole•Governmental needs in differing departments can be accommodated by an annual report•Developing countries would have more information without
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- Spring '14
- Accounting, International Financial Reporting Standards