Masters Of Business Administration ( International Business )

3. Has IFRS adoption made it easier for companies in that country to access the capital markets?

Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large

Standardized reporting across firms from different countries would facilitate cross-border investment and the integration of capital markets (Hail, Luzi, et al). According to Beke (2011), Standardization implies the “elimination of alternatives in accounting for representing economic transactions and other events” (Angeloni). In essence, similar events and transactions would be reported in a similar manner, and vice versa. Having more comparable reports allows firms to make better-informed investment choices due to a better understanding of competing firms, which can lead to cost savings. Moreover, firms that have more comparable reports can better contract with suppliers and firms in other countries, and these contracts are more likely to be fully specified and enforceable. Studies also show that the adoption of IFRS reporting should be associated with an increase in market liquidity, as well as a decline in firms’ cost of capital (Hail, Luzi, et al.).

A set of internationally recognized accounting standards facilitates capital flows across borders. Globally accepted standards make financial information readily comparable for its users. Foreign investors are more inclined to put money into a U.S. company if they are familiar with the company’s financial reporting. Conversely, U.S. investors will find it easier and less risky to invest in foreign companies when they know the local accounting standards (Epstein 2009). This will make U.S. companies and capital markets more competitive, since it saves costly reconcilition of different standards. Preparers, investors, auditors, and others will benefit from these cost effieciencies, since a Results of an IFAC Survey among accounting leaders around the world with respect to the importance of convergence to International Financial Reporting Standards for economic growth in their countries:

But there a certain limit of flexibility of this international standards for cover with all the differences accounting standard or accounting practices in between country. The IFRS is to increase the comparability of annual financial reports no matter oversea or domestic. This only can be success when the new set of accounting standard published by IFRS and adopting by country when only the cultural, economics, politics and other factors within the country change (Chen, 2009).

The purpose for seeking a Master Degree in Global Studies and International Relation is to expand my knowledge on the different ways capitalism, democracy, nationalism, and socialism is affecting the human rights of the world. With this knowledge, I would be able to have an in-depth understanding on how cross-cultural is affecting our world and how one can fix the problem. I will also be able to give a voice for those that do not have a voice. Like my mom was the voice for me throughout school because of my learn disability and because she was my voice I was able to excel and do better than most people ever through possible.

Additionally, there will be a need for a global security force to apprehend offenders of the new standards. This could be a controversial problem in itself. The main issue, is to establish the standards first and get every public trading company to buy in on the idea of implementing the standards. Currently, many countries have agreed to adhere to the international standards. As more countries are adopting the IFRS, the U.S. has yet to agree to the standards. Even though the GAAP and IFRS resembles closely, there are still some issues to be worked out (Street, 2012). Eventually the U.S. will agree to the terms of the IFRS, once all the terms and conditions are in balance (Zeff,

The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have

Coming from poverty is never easy. As a child I always saw my mother and grandmother struggle to raise me. Money was always limited but education was very important. Fortunately my mother was able to work three jobs so that I could attend private school. I was determined to always be the best, so I excelled in my academics and extracurricular activities. While being in high school I discovered I had a passion for writing and I loved being the center of attention. I wrote several articles for the school newspaper and broadcasted for any games that did not collide with cheerleading or dance. Regardless of my financial situation I wanted to be successful so I had to become extremely dedicated to my school work. As my senior year approached I knew it would be difficult for me to get into college. I was going to be the first person in my family to attend and no one was knowledgeable about the process of getting in. It was understood that having a degree would be essential to my goal of being successful so I was determined to earn my degree.

Over the past few years, human societies all over the world have established some increasingly close contacts. The pace at which global integration has been taking place over the past few years has increased dramatically. There have been many unprecedented changes in transportation, computer technology and communications and these have made the world an interdependent global community. Many multinational companies make their products and market them all over the world.

In the report, the Staff points out six dominant issues, which arise with the Work Plan. Firstly, in order to converging IFRS effectively into the U.S. Financial Reporting System, the Staff, based on observations, indicates that IFRS needs adequate improvement on enhancing transparency of financial statements and reducing diversity during application process, which can greatly fulfill comparability of financial statements. Secondly, although the standard setting process of IFRS is commented as independent by most of reviewers, the Staff presents that IASB should improve one of components, which is timeliness, while further boosting IFRS standard setting process. It means that IASB should take more attention to enhance its timely manner on addressing rising issues of standard setting in order to accomplish the needs of investors. Thirdly, according to the observations and comments, the Staff points out U.S. investors show more

This paper follows the previous papers showing that there are needs for harmonization across the globe in order for accounting standards to not be affected in a negative way. The best way to make this happen is by adopting the same set of standards across the globe and stick by them. This paper will show how the adoption of these standards will benefit countries globally by using the United States alone as an example. As a matter of fact, the effects on U.S. reporting practices are likely to be limited. Nonetheless, there could be a significant impact accounting reporting processes and systems. Therefore our focus will be on the costs to implement the solution. The major out-of-pocket costs will probably occur during the transition phase,

The international context requires a deep understanding of the WTO and agreements such as NAFTA, OECD, GATT among others this setup the parameters of the business practice.

Another problem in the SYSCO case study was the safety. Workplace safety and security has grown in importance along with disaster and recovery planning. Also, with explosive internet growth, many employees and managers uses social media such as wikis, blogs, tweets and other techniques. Though it is extremely helpful, but still the risk of social media is apparent. This could lead to many problems such as leakage of trade secrets, potential customers’ information and privacy of all the employees. Increase in safety issues resulted in increase of compensation claims by workers or other agencies.

Managers are looking to globalize operations, developing new markets for their products for better strategic business outcomes. Consumers have better access to a greater variety of goods and services and competition to reach to the new markets with the right product is getting stronger among businesses. Globalization also gives businesses better access to a global workforce, enables them to tap into international raw materials and financial resources. As the world economy is fast becoming a single interdependent system, businesses have competitors, customers, employees from anywhere in the world.