11_Fischer10e_SM_Ch0 - NoSuchKeyThe specified key does not

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 9 UNDERSTANDING THE ISSUES 1. A variety of environmental factors may account for the differences in accounting principles among countries. A major factor relates to the influence that other countries may have had on a particular country. For example, countries that were ruled or colonized by England are more likely to have accounting principles similar to those of England. Another important factor is the standard-setting process and whether the accounting principles have been developed more in the private versus public (government) sector. In some countries, government rules and regulations heavily influence accounting principles. Other factors resulting in differences in accounting principles include types of busi- ness activities and economic conditions, forms of capital markets, typical forms of doing busi- ness, social and cultural values, and the co- operative efforts between nations with respect to trade and capital markets. 2. The objectives of the International Accounting Standards Committee Foundation are: (a) to develop, in the public interest, a single set of high quality, understandable and en- forceable global accounting standards that require high quality, transparent and com- parable information in financial statements and other financial reporting to help parti- cipants in the world’s capital markets and other users make economic decisions; (b) to promote the use and rigorous applica- tion of those standards; (c) in fulfilling the objectives associated with (a) and (b), to take account of, as appro- priate, the special needs of small and me- dium-sized entities and emerging econom- ies; and (d) (e) to bring about convergence of national accounting standards and International Accounting Standards and International Financial Reporting Standards to high quality solutions. The FASB supports the objectives of the Foundation primarily through its commitment to the convergence project. The FASB signed, and subsequently reaffirmed, its memorandum of understanding with the IASB formalizing its commitment to the convergence of U.S. GAAP with IFRS. A number of initiatives have been undertaken in order to move toward the goal of convergence. Some of these initiatives in- clude joint projects with the IASB, short-term convergence project, an IASB in residence at the FASB, and the consideration of conver- gence in all agenda items taken up by the FASB. 3. U.S. GAAP differs from IFRS in a number of areas although through the convergence project the areas of difference are becoming fewer. Exhibit 9-2 sets forth a number of areas where there are differences. Students may be encouraged to select a topic covered by one of the IFRS and research it on the IFRS Web site (http://www.iasb.org) or at http://www.iasplus.com/standard/standard.htm and then compare the standard to that in the United States. Another site of interest may be the comparisons between U.S. GAAP and IFRS as set forth by PricewaterhouseCoopers “Similarities and Differences—A Comparison of IFRS, US GAAP and Indian GAAP (http://www.pwc.com/extweb/pwcpublications .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/05/2010 for the course ACC 476 taught by Professor Hildy during the Spring '07 term at Lane.

Page1 / 6

11_Fischer10e_SM_Ch0 - NoSuchKeyThe specified key does not

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online