The Implementation Of International Accounting Standards

The globalization of business activity has resulted in the need for a uniform set of accounting rules in all countries. With U.S. corporations doing so much business in other countries, it is imperative that the SEC and international regulatory boards devise a set of rules and regulations that would benefit both parties. If this did not happen, international companies would be able to do whatever they wanted without repercussion because of the discrepancies in the differing sets of rules. Accomplishing this universal set of rules would allow companies to list securities in any market without having to prepare more than one set of financial statements. There have been so many

11. The financial reporting issues facing Mexico are different in some respects from those of other countries covered in this chapter.

One reason for the concern is the current doctrine of immunity, why this is of concern. In the world of international investment, regulations have not always been equal and perhaps in this current moment, it remains varied, at

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:

It is an issue when considering how to put resources into U.S. stock common stores and non-U.S. stock common trusts.

-Investors are concerned with the reliability and comparability of sinacial statement in countries other than theirs. They favor this because it will help lower cost of investing in countries aboard and enhance the effectiveness

it provides a better indication of ability to generate cash flows than the cash basis.

* To cite the possible opportunities and threats that might affect the international operations of Equal Exchange.

6. Often we expect to observe less voluntary disclosure by companies in emerging market countries than by those in developed countries:

Over the course of the establishment of the IFRS, over 110 countries have adopted partially or fully implemented these standards. This brings the idea of a globalized standard closer to realization, when placed into the perspective that approximately 60% of the world uses one standard; while the U.S. operates on its own unique system. When all

Thus allowing easier comparability between home-based operations and in international financial markets, (Jordan, 2013). Furthermore, Fujitsu has subsidiaries located globally that may require or permit the use of IFRS and will highly benefit from the use of one method of reporting the standards. In turn allowing improvements in efficiency of corporate decision-making and optimal allocation of the company’s scarce resources, (Hicks, 2012). Further, the adoption of IFRS will allow Fujitsu to gain global investment opportunities, where “institutional investors increase holdings in firms that have adopted the IFRS”, (Brown, 2010). Investors will be more willing to “provide financing with greater transparency amongst different firms’ financial statements”, in saying so, it will allow Fujitsu to increase the accumulation of foreign capital through improving the quality of financial reporting and allowing greater transparency when recording the financial performance of the corporation, (American Institute of Certified Public Accountants, 2014). Hence reinforcing that multinational conglomerates are economically advantaged when using only 1 reporting standard, (Dumont, 2012). In addition the IFRS ensures to provide companies, such as Fujitsu with more “accurate, timely and comprehensive financial information” as it abides by national reporting standards (Jordan, 2013).

For many years now, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been developing new standards in relation to the sales and purchases of leases. The joint effort of the two has finally come to an end, with the new standards being issued out on February 25, 2016. These new standards will come into effect starting in 2019. It is important that our diversified company begins preparing for the major implications of these new standards and fully understand what we are dealing with. The Accounting Standards Update No. 2016-02, Leases (Topic 842) will have an immediate effect on our company because is involved in many lease-related transactions as not only a lessee, but as well as a lessor. In this memo, we will be analyzing the changes Topic 842 from the perspective of the lessee and the lessor. The lessee is the company receiving the asset or property from the contract while the lessor is the one providing the asset or property. Finally, there will be an examination of the direct impact this will have on our income statement, balance sheet, and statement of cash flows. First, we will be taking a look at the changes Topic 842 makes from the original lease standards.

According to Delloite (http://www.iasplus.com/en/resources/ifrsf/due-process/background-to-ifrs)”The International Accounting Standards Board (IASB) is an independent non-profit organization that develops and approves International Financial Reporting Standards (IFRSs)”. In mainly usage, the term 'International Financial Reporting Standards ' (IFRSs) has both a narrow and a broad meaning. Firstly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC at 2001 interpretations approved by the predecessor International Accounting Standards Committee.” The IASB has all responsibilities for the technical matters of the IFRS Foundation. The objective of financial reporting is the foundation of the conceptual framework. Other aspects of the framework - qualitative characteristics, elements of financial statements, recognition and measurement - will build on that foundation with the aim of ensuring that financial reporting achieves its objective. The goal of IFRS as said at (source) is”to develop a set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles”. To surmount these difficulties and still connect accounting to

Claritying of the legislations governing the various activities of the market, seeking to update it to respond to the actual practice and consistency with the best international practices, and providing access to products and modern financial instruments. The necessity of consulting the concerned parties, especially those working in the activity.

Tables 3.1 and 3.2 above exhibit the various local content sustainability indicators and their reporting procedures. Although the GRI is the most commonly used guideline, the two standards are often used together in a single sustainability report by oil companies . The present study combines these indicators and adopted a content analysis procedure to test whether there is any variation in the IOCs’ local content reporting before and after the enactment of the Nigeria’s local content law. The next section considers other voluntary local content reporting provisions.