Embracing Globalism

747 Words3 Pages
The world is embracing globalism, which is a key change in not only the political and cultural paradigms of the business world, but the economic structure. Indeed, as the process and potential of globalism increases in the 21st century, several different fiscal and legal issues have developed that assist organizations in developing standards that will allow an easier approach to global business (Godfrey & Chalmers (eds.) 2007). However, as we have seen with companies like Enron, the use of accounting data can be at the heart of fraud and public confidence and trust, thus standards must be developed as companies consistently move towards global business opportunities (Inkpen & Ramawamy, 2006). The International Financial Reporting Standards (IFRS) are one example of this, adopted in 1989 by the International Accounting Standards Board. Many of these were previously known as International Accounting Standards (IAS) issued between 1973 and 2001. However, on April 1, 2001, the IASB took over the responsibility for setting new standards to establish a framework for the preparation and presentation of financial standards. This is done, broadly, to reflect true and accurate views of the organization regardless of the country of preparation (IASB 2012). Within this larger need for standardization, there are a number of issues that require more lengthy explanations. Among which, the recording of liabilities across the IFRS and to support a more global approach to the "convergence
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