0142F-Pertemuan2 - Course 0142F International Accounting International Convergence of Financial Reporting Session 2 Agenda 1 Impact on multinational

0142F-Pertemuan2 - Course 0142F International Accounting...

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Course: 0142F – International AccountingInternational Convergence of Financial ReportingSession 2
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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
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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
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StandardizationRigid, narrow set of rulesOne-size-fits-all approachLess flexible than harmonization or convergenceNot the current thinkingHarmonizationStandards that are compatible – no logical conflictsMeans the elimination of differences among existing accounting standardsConvergenceMeans the gradual elimination of differences in accounting standardsBut might also involve a new accounting treatment not in any current standardInvolves cooperative efforts of IASB and national standard-settersNow the preferred term over harmonizationMeaning of convergence
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Pressures for Harmonization
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Government involvement in accounting determination varies across the worldDo governments really use corporate reports?Information needed by governments is often too extensive to include in the reportGovernments can demand whatever information they needInformation needs are extensive and confidentialThese things suggest governments may not be important users of corporate reportsIs this a paradox?Explained by situations where governments might be users1. Governments
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Use reports, along with segmental information, to check performance of local subsidiaries of MNEsGovernments wish to monitor MNE operations as a wholeGovernmental needs in differing departments can be accommodated by an annual reportDeveloping countries would have more information without
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  • Spring '14
  • Accounting, International Financial Reporting Standards

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