Annotation Most US managers, possibly without knowing it, have some contact with International Accounting. Their own companies may use international accounting or have transactions with businesses using it. Over 100 countries have adopted International Accounting and this number is increasing. Foreign companies can list on the New York Stock Exchange using International Accounting instead of US GAAP. Finally, some of the concepts in International Accounting will find their way into the Management Accounting system used in your organization. This book sets out to explain in a non-technical way, why international accounting has spread globally, how it has influenced US accounting, the problems to be resolved, and the possible strategies the US can adopt. At this stage the US has not formally adopted International Accounting but it is here to stay. Its global acceptance has already impacted on the work US managers do and will increasingly do so "For many years, individual countries decided their own rules and regulations for company financial accounting and reporting. As the world became more global, problems began to arise. A company could make a profit for the year if the rules in its own country were applied, but this could turn into a loss if another country's rules were used. This did not make sense. Investors were hesitant to buy shares in foreign companies, companies were careful when the financial stability of foreign suppliers and customers could not be established, and companies wanting to list on a foreign stock exchange, for example, New York, experienced difficulties. To prevent this confusing and misleading state of affairs, attempts were made at the international level to agree on what the rules, known as accounting standards, should be for financial accounting and reporting. Those standards are now issued by the International Accounting Standards Board (IASB). Since 2002, the standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge U.S. regulations with international accounting standards. These events are not only important to accountants, but to everyone who has been dealing with a company. This could be investors, employees, customers, banks, suppliers, and the tax authorities. If you are interested in the financial performance and status of a company, you need to understand the accounting rules, their changes, and the reasons they pursue an international set of standards."--Page 4 of cover For many years, individual countries created their own rules and regulations for company financial accounting and reporting. As the world became more global, problems began to arise. A company could make a profit for the year if the rules in its own country were applied, but this could turn into a loss if another country's rules were used. To prevent this confusing and misleading state of affairs, standards were issued by the International Accounting Standards Board (IASB). Since 2002, the standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge U.S. regulations with international accounting standards. This book describes: • The process for setting accounting regulations in the United States • Attempts to establish international standards and the barriers confronted • U.S. involvement in international activities through a process known as convergence • Differences that have halted convergence and the U.S. strategy • Frauds and questionable activities and describes the FASB's efforts to ensure that financial statements do not mislead their users
For many years, individual countries created their ownrules and regulations for company financial accountingand reporting. As the world became more global, problemsbegan to arise. A company could make a profit for the yearif the rules in its own country were applied, but this couldturn into a loss if another country's rules were used.To prevent this confusing and misleading state ofaffairs, standards were issued by the International AccountingStandards Board (IASB). Since 2002, the standardsetter in the United States, the Financial AccountingStandards Board (FASB), has been actively engaged withthe IASB in attempting to converge U.S. regulations withinternational accounting standards. This book describes: • The process for setting accounting regulations in theUnited States• Attempts to establish international standards andthe barriers confronted• U.S. involvement in international activities through aprocess known as convergence• Differences that have halted convergence and theU.S. strategy• Frauds and questionable activities and describes theFASB's efforts to ensure that financial statements donot mislead their users
Content: 1. U.S. accounting regulation -- 2. The move toward international accounting -- 3. The U.S. engagement -- 4. Successes and failures -- 5. The disagreements -- 6. The end and the beginning -- Notes -- References -- Index.
