Select A Non Uk Company And Obtain Its Latest Annual Financial Reporting Documents

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College Number
(Bottom Left of College Card) 100744209

Year: 3

Course Code MN3045

Course Tutor: Prof Jane Davison
Assignment No.: 1

Degree Title: Management with Accounting

Question No. & Title: Select a non-UK company and obtain its latest annual financial reporting documents. Introduction
Company’s annual financial reporting is an important tool to translate and transfer information of organization’s financial performance to shareholders and users. This report will choose Volkswagen AG’s 2014 annual financial reporting as the example to examine how the company to show its accounting works.

In this report, it firstly will attempts to examine the external and culture influences on the annual financial reporting. After that, the
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These differences dimensions of culture have complex impacts the behavior of accountants such as preparers, auditors, regulation-makers, and as well as on the accounting practices users (Gray, 1988). For examples in the Table 1, it outlines some effects of culture on accounting and financial statements.
Cultures Effects on accounting behaviors
High uncertainty avoidance and low individualism. Conservative measurement of income, limit disclosure.
Uncertainty avoidance decreased. Transparency increased.
Table 1.
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
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