Financial Accounting

Case 2: Variety is the Spice of Life

Question 1:
Due to the environmental factors that shape accounting mystifyments in several(predicate) countries, using scarcely one uniform accounting and inform standard whitethorn not represent a attract win situation for all concerned. By using only one accounting system within a transnational company can having very assorted effects in all areas. Since countries use and arrive at different accounts systems, rules and regulations, financial reports at the end of a year allow differ which may cause a negative effect on any country if only one uniform accounting and account standard was used.

Question 2:
When using accounting tuition the primary role of accounting in other countries must be identified and understood that they result differ than their country. The penchant and information within a financial report will be affected. How accounting reports are interpreted and used will be influenced. This can impart both advantages and disadvantages.

The environmental factors which are likely to shape accounting development in a country are a great advantage to have diversified accounting practices and standards.



Each country would then be able to develop their accounting standards based off of the sideline factors:
* Nature of capital markets
* Type of Reporting
* Size and complexness of business entities
* Type of legal systems
* Level of enforcement
* Rate of inflation
* policy-making and economic ties with other countries
* Stature of accounting profession
* Existence of abstract framework
* Quality of accounting education
With these factors in mind, countries are able to develop accounting standards that best suit their needs. This can allow for soothe in due reporting.

One of the major disadvantages of having a diverse accounting standard within different countries is the ability to have the same information on the reports. A country with high up financial reporting and disclosure...If you want to get a sufficient essay, order it on our website: Orderessay



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