Different Approaches to Corporate Reporting Regulation

Despite those enormous advantages, it has been argued that IFRSS adoption lead to significant costs. The main argument is that IFRSs do not consider local needs and priorities as every country has their own ‘business environment, legal systems, cultures, language and political environment’ (Henderson and Peirson, 2000 cited from Malthus, S., 2004). However, to overcome this problem, IASB can accommodate flexible reporting standards that enable companies to choose alternatives that are more suitable for their external condition. It is opinion of some opponents of IFRS adoption that IAS is ‘insufficiently detailed’ (Uddin,M.S., 2005, p.4) that require accountants’ and auditor’ professional judgment. However, overly detail might be contra productive and not flexible in anticipating every changes and differences.

We now want to look into the International Accounting Standards Board and framework for the preparation and presentation of financial statements. The conceptual frameworks are split into five categories and are in the following order: the objective of financial statements; underlying assumptions; the qualitative characteristics that determine the usefulness of information in financial statements; the definition, recognition, and measurement of the elements from which financial statements are constructed; and the concepts of capital and capital maintenance (Ankarath 11). The standards under IFRS are beginning to become much more popular across the world for several different reasons. The International Financial Reporting Standards are currently being used by at the very least 100 countries and “[was] expected that by 2011, more than 150 countries [would] have adopted them” (Ankarath 1). We happen to find this important because it seems that a lot of countries are starting to adopt IFRS to report their financial statements. One of the reasons why many countries made the switch over to IFRS is because “the decision of the U.S. SEC to allow foreign private issuers to list their securities on U.S.

Few pieces of legislation have had an impact on corporations, accounting firms, and investors like Sarbanes-Oxley. Sarbanes-Oxley was passed by Congress in 2002 as direct result of the accounting scandals that plagued the public equity markets during the late 1990s and early 2000s. Sarbanes-Oxley was developed to be a series of measures, safeguards, guidelines, and criminal punishments in order to prevent future accounting scandals on the scale of Enron and Worldcom. Sarbanes-Oxley has profoundly impacted both management and accountants albeit in mostly similar ways. The following exploration will compare and contrast these views held by management and accountants regarding Sarbanes-Oxley.

After reading the first half of the text, I learned about the topics of globalization, economic development, international financial markets, and more. International business is relevant in almost all news articles today. Although I have learned a large measure of information from each chapter, I was mostly interested in chapter five’s topic of international trade which discussed how countries sell, purchase, or exchange goods across national boarders.

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2. Course Text Book: Ball, Donald; Geringer, Michael; Minor, Michael; McNett, Jeanne. International Business. McGraw-Hill Higher Education, 13th edition, 2012. Print

International Finance MBA 610.63 Westlake Village Center Wednesday 1/5-2/16/05 Len Rushfield (310) 474-5848 (603) 843-9683 (efax) leonard.rushfield@pepperdine.edu/ asiaptner@aol.com Course Objectives MBA 610.63 is intended to provide a foundation of understanding of international finance and the critical options for corporate financial management within the global markets. Intensive reading will establish the basis of information on international financial structure, processes and techniques. Cases will identify important real

Regulation is design to control and govern conduct by authority that has the power to oversee how financial statement have been prepared and enforce compliance with regulatory requirements (Deegan 2009, p.59). In recent years, there have been changes in the New Zealand regulatory requirements for external financial reporting. External financial reporting in New Zealand is regulated by the legislation, Accounting standards and the Financial Markets Authority. The changes to New Zealand regulation is to the Financial Reporting Act 2013 which will replace the Financial Reporting Act 1993 and would come into effect on 1 April 2014. The Financial Reporting Act applies to all reporting entities (Deegan & Samkin, 2013). This new act will see that

International business is the most desirable and vital phenomena in today’s modern world. Most individuals know that International Business is the necessity for the prosperity of our world. No one can prosper without performing business internationally. When learning of how other countries conduct International Business, a company can expand their market to appeal to citizens of these places. However, being as close knit as we are to other countries, not everyone holds the same values. Every business’ goals is to make profit and if one company acts in an unethical matter, that will create a downfall domino effect. This statement holds truth for the result of the financial/banking crisis that occurred in 2008 because of many errors that were made unethically and eventually affected many other countries around the world and their living conditions.

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The AICPA Code of Professional Conduct is the foundation of ethical reasoning in accounting. The Code of Conduct typically is used to discuss the ethical obligations of CPAs. The principles guide members in the performance of their professional responsibilities and call for an unyielding commitment to honor the public trust. Although CPAs cannot legally be held to these principles, they do represent the expectations for them on the part of the public in the performance of professional services. Excello must be cautious to follow the rules of due care, general public interest and honesty.

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

In the 1970’s there was an increase in discussions about unifying reporting procedures. With the increase of business dealings between companies in different countries the experts started to ask the question: “Why can’t we agree on a single reporting practice”? Now, logic would have it that anyone looking to invest in a company or do business with a company in another country should be able to look at their financial reports and make a sound decision. The problem arises when a company in the US is examining a company in Germany and the American company is unable to make a confident assessment of the financial standings of the company in Germany due to the dissimilarity in the financial records. The lack of transparency (and possible inaccuracies) suggests that it

Global Financial Management In today's increasingly internationalized worldwide economic system, defined by the expansion of multinational corporate conglomerates into foreign shores, the necessity for effective and efficient global financial management has never been greater. Whereas autonomous countries once maintained clear authority over businesses which were built on their shores, through levying taxes, enforcing fiscal regulations, and instituting a lawful system of commerce, today the most successful companies are those with the wherewithal to transfer their operations abroad. Global financial management requires a comprehensive comprehension of foreign exchange and currency markets, derivatives securities, international financial debt and equity markets, international portfolio investments and the global market for real assets. Due to the fact that "financial markets and intermediaries today are globally linked through a vast international telecommunications network," with this continual process resulting in "the trading of securities and the transfer of payments go on virtually around the clock," (Merton and Bodie, 1995), the field of global financial management has emerged to meet the needs of major multinational corporations.

All companies are obligated to corporate reporting under the Corporations Act 2001. It involves corporate reporting through the implementation of an audit committee. This motion requires accountability and transparency, without it, companies may be viewed as sneaky and troublesome. JB Hi-Fi has established an Audit and Risk Management Committee (ARM) as stated in their annual reports. This committee meets regularly and are independent of the company as they are non-executive directors. To further demonstrate JB Hi-Fi’s integrity, Deloitte Australia is used as an independent auditing company to additionally declare the annual financial reports as unbiased, factual and honest.