(a)
International accounting standards
International accounting standards are the common accounting standards followed by the countries across the world for ease of business, and to eradicate the shortcomings of the accounting standards followed locally to be adopted for international business transactions. But the IFRS (International Financial Recording Standards) differs in some aspects with GAAP (Generally Accepted Accounting Principles).
To discuss: The reasons behind favoring the switch to IFRS by the larger companies, big accounting firms, and rule makers.
(b)
To discuss: The reasons which are given by many smaller companies that oppose the switch.
(c)
To discuss: The criticism of IFRS which is raised with regard to the regulated companies.
(d)
To explain: The concept of condorsement.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
FINANCIAL ACCOUNTING: TOOLS WP ACCESS
- In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions . 31. Baker Tilly MKM (Oman) LLC is the auditor of United Power Company SAOG (Company) and has stated that the financial statements has fairly presented the financial performance and the cash flow for the year. The preparation of financial statements is the primary responsibility of a. Internal auditors of United Power Company SAOG b. Baker Tilly MKM (Oman) LLC c. Board of Directors d. Management at United Power Company SAOGarrow_forwardIn June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions Which of the following is not one of the International code of Corporate Governance? On retiring, a Chief Executive should become a chairman. At least half the board, excluding the chairman, should comprise non-executive directors Levels of remuneration should be sufficient to attract and retain directors The role of Chairman and chief executive officer should be separatedarrow_forwardIn June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions . 29. Comparing the Internal Auditors and External Auditors , which of the following is not true about Internal Audit a. The auditor is appointed by the Management b. It is conducted by the employees of the company c. The scope of the internal audit is decided by the Board of Directors d. It is performed by a separate internal auditing departmentarrow_forward
- In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions . Baker Tilly MKM (Oman) LLC is the auditor of United Power Company SAOG (Company) and has stated that the financial statements has fairly presented the financial performance and the cash flow for the year. The preparation of financial statements is the primary responsibility of Baker Tilly MKM (Oman) LLC Management at United Power Company SAOG Board of Directors Internal auditors of United Power Company SAOGarrow_forwardIn June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions . 30. Which of the following is not one of the International code of Corporate Governance? a. The role of Chairman and chief executive officer should be separated b. On retiring, a Chief Executive should become a chairman. c. At least half the board, excluding the chairman, should comprise non-executive directors d. Levels of remuneration should be sufficient to attract and retain directorsarrow_forwardIn 2005, Tony Menendez , a former ernst and young LLP auditor and director of technical accounting and research training for Hallibution, blew the whistle on Halliburtions accounting practices, the ................ Question: Describe the inadequacies in the corporate governance system at Hallibution ( This Is the case, for subject Accounting Ethics and Regulation )arrow_forward
- The following comments were made at an Annual Conference of the Financial Executives Institute (FEI).There is an irreversible movement toward the harmonization of financial reporting throughout the world. The international capital markets require an end to:1. The confusion caused by international companies announcing different results depending on the set of accounting standards applied.2. Companies in some countries obtaining unfair commercial advantages from the use of particular national accounting standards.3. The complications in negotiating commercial arrangements for international joint ventures caused by different accounting requirements.4. The inefficiency of international companies having to understand and use a myriad of different accounting standards depending on the countries in which they operate and the countries in which they raise capital and debt. Executive talent is wasted on keeping up to date with numerous sets of accounting standards and the never-ending changes…arrow_forwardThe following statement appeared in a financial magazine: “RRA—or Rah-Rah, as it’s sometimes dubbed—has kicked up quite a storm. Oil companies, for example, are convinced that the approach is misleading. Major accounting firms agree.” What is RRA? Why might oil companies believe that this approach is misleading?arrow_forwardThe Steinhoff saga, possibly the biggest case of corporate fraud in South African business history,has dominated financial and general news since the company’s share price collapsed on5 December 2017.The reality is that it seems as though the crisis at Steinhoff is more than an overstatement of incomeand asset values which has triggered a liquidity and credit crunch. It is about the collapse ofcorporate governance and great levels of unethical business leadership.Required: Do some research and explain why it is important for businesses to have ethical standards and codes of conduct for financial managers. Include another example where poor ethical practices by people in a management or trustposition have led to significant losses.arrow_forward
- At the 2019 international meeting of business leaders, Michael Owusu said that multi-jurisdictional attempts to regulate corporate governance were futile because of differences in national culture. He drew particular attention to the Organisation for Economic Co-operation and Development (OECD) and International Corporate Governance Network (ICGN) codes, saying that they were, 'silly attempts to harmonise practice'. He said that in some countries, for example, there were 'family reasons' for making the chairman and chief executive the same person. In other countries, he said, the separation of these roles seemed to work. Another delegate, Victor Bema, said that the roles of chief executive and chairman should always be separated because of what she called 'accountability to shareholders'.One delegate, Vincent Tommy, said that the right approach was to allow each country to set up its own corporate governance provisions. He said that it was suitable for some countries to produce and…arrow_forwardIn June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market. The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Which of the following is not one of the International code of Corporate Governance ? At least half the board, excluding the chairman, should comprise non-executive directors On retiring, a Chief Executive should become a chairman. Levels of remuneration should be sufficient to attract and retain directors Chairman and chief executive officer should be separatedarrow_forwardErnest and Young cleared Wirecard’s reputation back in 2008 and BaFin, the German financial regulator, continually supports Wirecard. Critics of Wirecard were investigated by BaFin. Suggest course of action (s) to prevent discrepancies in the financial resultsreporting to ensure that such scandal will not arise in the near future. Make sure your answers in paragraph not less than 500 words. Thank youarrow_forward
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningBusiness/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage