ACC 300 Accounting Reporting Criteria

ACC 300 Accounting Reporting Criteria - Accounting...

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Accounting Reporting Criteria 1
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Accounting Reporting Criteria 2 Accounting Reporting Criteria There are many opportunities as well as challenges for corporations who enter a globalized market. The challenges can be exceptionally difficult for those who prepare and use financial and accounting reports and information for international companies. This is because the accounting reporting criteria differ between the Generally Accepted Accounting Principles in the United States, the Financial Accounting Standards Board in the United States, and the International Accounting Standards Board. The International Accounting Standards Board was formerly known as the International Accounting Standards Committee prior to 2001 and was established to specifically address the differences between financial markets in different companies that operate globally. A comparison of a domestic company and a globally-operating company reveals some of these differences. When looking at domestic and global companies, with Ford and Honda as our examples, the regulatory environments have many similarities. As a publicly traded American company, Ford is required to adhere to standards and regulations established by United States regulatory bodies. Ford’s 2006 Annual Report includes statements attesting to its compliance to the following regulatory entities: the United States Securities and Exchange Commission (SEC), the Public Company Oversight Accounting Board (PCOAB), the Financial Accounting Standards Board (FASB), and the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (Ford Motor Company, 2009). Surprisingly, Honda must adhere to the guidelines of these same regulators and file an annual report in the United States (Honda Worldwide, 2009). This is because Honda is a publicly traded company in the U.S., even though the company is based in Japan. As a foreign company, Honda must be compliant with several additional international regulating bodies. It must follow
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Accounting Reporting Criteria 3 the standards established by the International Accounting Standards Board (IASB) and the
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ACC 300 Accounting Reporting Criteria - Accounting...

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