Rio Tinto Limited Executive Summary

The oil and gas industry is easily influenced by the economic segment as there are so many dependent sectors in this industry. Thus, if the economy is in the recession/inflation, there will be fewer oil and gas products manufactured as people will try to cut down on their energy expense such as vacation or having an own car to drive to work…

SFAC No. 8 addresses the cost constraint on useful financial reporting, “Cost is a pervasive constraint that standard setters, as well as providers and users of financial information, should keep in mind when considering the benefits of a financial reporting requirement.” (SFAC No. 8 BC 3.47) However, the ability to place a dollar value and fully enumerate a cost or benefit is almost an impossible task for standard-setters. Additionally, there is no way to successfully identify and measure all of the economic consequences associated with a new standard. The FASB should be applauded though for advancing uniformity in accounting standards, however; uniform financial reporting suggests a one size fits all approach. “Smaller, non-publicly listed firms (and their auditors) argue that accounting standards are formulated mainly for larger, publicly traded firms” and that “compliance costs are disproportionately higher and the

The energy industry is not any different than most commodity-based industries as it faces long periods of boom and bust. Drilling and other service firms are highly dependent on the price and demand for petroleum. These firms are some of the first to feel the effects of increased or decreased spending. If oil prices rise, it takes time for petroleum companies to size up land, setup rigs, take out the oil, transport it and refine it before the oil company sees any profit. On the other hand, oil services and drilling

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

The growth rate for these jobs is also rather slow. According the Bureau of Labor Statistics, the oil and gas industry has only added 23,500 jobs to Pennsylvania from 2002 to 2012. Furthermore, fracking can be linked to job loss. When a commodity is in abundance, its price goes down. Low prices may be beneficial to consumers, but when prices are too low, producers lose revenue. This economic principle is particularly noticeable in the oil and gas industry. Halliburton, an oil field services company who specializes in fracking, laid off 9,000 employees in the first quarter of 2015 due to low oil prices (“Lower Oil Prices”). Although fracking may not have been the direct cause of these low prices, it creates surges in oil and gas that cause similarly low

US oil and gas producers are struggling with persistently low natural-gas prices and a roughly 50% drop in the price of crude oil in the past year. The huge drop in oil prices has caused many drillers to do drastically cut their budgets, including laying off workers. Some firms are also struggling with higher costs of storing fracking related waste due to stricter regulations.

BHP Billiton is an Australian based global company created in order to source and mine natural resources. These resources include copper, iron ore, coal, uranium and nickel. BHP also claims to have “substantial interests in oil and gas” (BHP Billiton, 2015). In order to have continual future growth, BHP has taken the growth of climate change into consideration when planning for the future.

But the energy industry has seen its fortunes go down, as global crude oil prices has continued to sink. While cost of crude

The BHP Billiton is second biggest mining company in the world based on income. The Australian mining company earned a massive $68 billion dollars in sales in year 2013 from selling products such as iron ore, cooper, aluminium, coal, silver, nickel, uranium and manganese according to Spence (2014). Broken Hill Proprietary’s history began in a mine in Broken Hill, Australia. BHP was founded in year of 1885. The company participated in variety of activities such as finding, developing, producing and marketing of iron ore, copper and a range of other natural resources. According to BHP Billiton Chronology (n.d.), Billiton was a mining company and its history found back to year of 1860, when the documents of association were accepted by a meeting of investors in the Groot Keizerhof hotel in The Hague, which is in Holland. In year 2001, Broken Hill Proprietary and Billiton Company have decided to merge into BHP Billiton Company which had positive reactions from certain individuals such as then Australian Prime Minister John Howard who believed this merging of companies is very beneficial for Australia (O’Brien, 2001). BHP Billiton is a Dual Listed Company (DLC) which involves BHP Billiton Public limited company and BHP Billiton Limited. BHP Billiton was established through the Dual Listed Company fusion of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Public limited company), which was finished on June 2001. The head office of BHP Billiton,

Navitas Limited(NVT) is a reputable education provider that operates a range of educational services including University Programs, SAE, Professional and English Programs for students, professionals and migrants from all over the world. University Programs division enables the international students with language problems or unsatisfied academic records, which are not eligible for direct entry to universities, to get into ‘partner’ universities. SAE offers higher education and quality vocational training focused on audio, design, film production and creative media. PEP engages in the provision of English language and literacy programs for international students as well as settlement and work preparation

However, it is difficult to find out specific evidences on the effects of culture on the company’s financial reporting within a large international firm due to some limitations. Firstly, the cultural data is not reliable in an accounting context (Nobes and Parker, 2012). For example, UK and Germany use different legal and accounting systems despite both of them are European countries. German companies are in operating under their own laws and policies. Secondly, compared with the measurement of direct relevant elements of the external environment of accounting such as legal systems or equity markets, the measurements of cultural influences within a company accounting system are vague and indirect (Nobes and parker, 2012). Culture measurement is complex, Hofstede’s theory doesn’t consider about the people which come from other countries and minority population that may have different cultural attributes

In cooperation with Amicorp Curaçao B.V., the author investigated in the autumn of 2015, the perception of the BEPS Action Plan by experts in the professional advisory industry. Furthermore, the author ana-lyzed the impact of the Country-by-Country reporting (Action Plan 13) on the most important business processes in the Client Accounting Department (CAD) of the company (Keteldijk, 2015, p. 1).

Hindustan Lever Limited, India’s leading and fast moving consumer goods (FMCG) and services Company, had enjoyed a competitive advantage as a lone provider of personal hygiene care products until the development of India’s economy. However, with the entry of multinational FMCG companies HLL started experiencing stagnant growth and lower profit margin, and was under pressure of rising its incomes and revenues. At this point HLL’s new ventures division identified the untapped and unexplored rural India (where two-thirds of the population lived), as a key source of growth and expansion for the future. To continue on its competitive edge, HLL designed an innovative approach to penetrate these rural markets, with a project called

As of November 24, 2015 China’s reporting standards are created by the Accounting Regulatory Department, Ministry of Finance, People’s Republic of China. Its role is to be responsible for the setting of the accounting standards in China for business enterprises (IFRS, 2015). As IFRS is stretching worldwide, China has made a public commitment to support global accounting standards and move towards the IFRS as those standards. It is also important to note that the Chinese Accounting Standards for Business Enterprises (ASBEs) was recognized in a joint statement back in 2005. A memorandum was signed by a representative of China and a member of the IASB in 2005 supporting the view that the new accounting standards were convergent with IFRS. A revised and improved version will continue to be on the rise to meet IFRS standards in completing convergence. Very recently, an announcement was made that there are up and coming steps being taken for internationally-oriented Chinese companies with steps for an advance use of the IFRS standards in China. It states that it will also identify the vision of Chinese Accounting Standards becoming fully integrated with IFRS and is encouraging continued co-operation between IASB and Chinese stakeholders (IFRS, 2015).

Reliance Industry Limited is an indian conglomerate company whose headquarter is in Mumbai,Maharashtra,Indi- a.The company operates in these 5 sectors—exploration and production,refining and marketing,petrochemicals,re- tails and telecommunications.But in recent time this company has expanded it’s business in India in construction,energy,health care,textile.The company was co-founded by Dhirubhai Ambani and his cousin champak- lal Damani in 1960s as Reliance commercial corporation. After his death the company was distributed among his son Mukesh and Anil Ambani.