scholarly journals The Convergence Of Multinational Standards And Practices In International Financial Reporting

2012 ◽  
Vol 8 (4) ◽  
pp. 461-466
Author(s):  
Ashley B. Harper ◽  
Linda Leatherbury ◽  
Ana Machuca ◽  
JoDee Phillips
Keyword(s):  
United States ◽  
Multinational Corporations ◽  
Financial Reporting ◽  
The United States ◽  
International Investment ◽  
Reporting Standards ◽  
Reporting Practices ◽  
Advantages And Disadvantages ◽  
Foreign Corporations ◽  
Single Set

The International Financial Reporting Standards (IFRS) is pending a move to incorporate a single set of accounting standards across International borders. The definitive decision for uniting the standards appears to be stalemated. The pending move by the United States to adopt financial reporting practices set forth by the IFRS to encompass a single set of reporting standards bears both advantages and disadvantages for multinational corporations. This paper examines some of the difficulties that can arise by using a single set of standards and addresses two significant studies regarding converging reporting standards. The paper concludes by discussing issues that could potentially arise if the standards are adopted in their entirety by the United States and the political issues that could emerge resultant of their adoption. The significance of international investment opportunities in foreign equity securities by investors in the United States and the significant number of foreign corporations registered on various securities exchanges around the world make the adoption and establishment of international reporting standards a challenge to many accounting professionals.

scholarly journals Income Tax Complexity Faced by Multinational Corporations: A Comparative Study of Canada, the United States, and Other Selected OECD Countries

2021 ◽  
Vol 69 (3) ◽  
pp. 745-790
Author(s):  
Susann Sturm
Keyword(s):  
United States ◽  
Multinational Corporations ◽  
Income Tax ◽  
Transfer Pricing ◽  
The United States ◽  
Oecd Countries ◽  
The Us ◽  
Tax Complexity ◽  
Medium Level ◽  
Foreign Corporations

This study examines the complexity of Canada's corporate income tax system from the perspective of multinational corporations and compares it with the complexity of the US system, also taking into account measures of complexity for 19 other member countries of the Organisation for Economic Co-operation and Development (OECD). The author finds that with regard to the Canadian tax code, the most complex laws are those on corporate reorganization, transfer pricing, and controlled foreign corporations, and with regard to the Canadian tax framework, the most complex areas are tax audits, tax-law enactment, and tax guidance. In comparison with other OECD countries, Canada is remarkably similar to the United States. Both countries have a medium level of overall complexity, and both have a more complex tax code but a less complex tax framework than other countries. However, a closer examination of the Canadian and US tax codes and tax frameworks reveals some significant differences in complexity levels, particularly in respect of certain tax laws.

scholarly journals The Impact Of International Financial Reporting Standards On Accounting Curriculum In The United States

2011 ◽  
Vol 4 (1) ◽  
Author(s):  
JeRamMohan R. Yallapragadarry ◽  
Alfred G. Toma ◽  
C. William Roe
Keyword(s):  
United States ◽  
Financial Reporting ◽  
Business Schools ◽  
The United States ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Accounting Curriculum ◽  
The Us ◽  
The Impact

According to the time line presently specified by the Securities and Exchange Commission (SEC), business firms in the United States (US) should switch from the existing US accounting reporting guidelines of the Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) by the year 2014.  The US business school graduates and accounting professionals have less than four years to understand the differences between the two accounting systems, and to learn how to implement the new International Accounting Standards.  But many of the business schools in the US are not yet ready to include the new IFRS standards in their accounting curriculum. In many schools, administrators do not have any understanding of how to incorporate the new standards in their curriculum. Many European countries shifted to IFRS as early as 2005.  They are ahead of the US in teaching IFRS to their students. The main problems in incorporating IFRS in the curriculum include lack of good textbooks and providing training for professors to learn IFRS procedures so that they can teach them to their students. This paper makes an effort in presenting the historical background of IFRS, and the impact of the adapting of IFRS on US business schools.

scholarly journals International Financial Reporting Standards and Earnings Management in Latin America

2016 ◽  
Vol 20 (3) ◽  
pp. 368-388 ◽  
Author(s):  
Alex Augusto Timm Rathke ◽  
Verônica de Fátima Santana ◽  
Isabel Maria Estima Costa Lourenço ◽  
Flávia Zóboli Dalmácio
Keyword(s):  
United States ◽  
Latin America ◽  
Earnings Management ◽  
Latin American ◽  
Financial Reporting ◽  
The United States ◽  
Reporting Standards ◽  
Anglo Saxon ◽  
Financial Reporting Standards ◽  
Cross Listing

Abstract This study analyzes the level of earnings management in Latin America after the adoption of the International Financial Reporting Standards (IFRS) and analyzes the role of cross-listing in the United States. The literature on earnings management in less developed countries is still under construction, and few studies focus on this issue, especially with respect to Latin America, despite its relevant role in the global economy. This paper fills this gap in the literature as it analyzes the level of IFRS earnings management regarding the first and main Latin American countries applying IFRS (Brazil and Chile), when compared to the main Anglo-Saxon countries with IFRS tradition (United Kingdom and Australia), and with the main Continental European economies (France and Germany). The results show that Latin American firms present a higher level of earnings management than Continental European and Anglo-Saxon firms, and this opportunistic behavior remains significant when only global players with cross-listing in the United States are analyzed. Thus, even with a unique set of high quality accounting standards (IFRS) and strong reporting incentives, countries' specific characteristics still play an important role in the way IFRS is implemented in each country.

scholarly journals Incorporating International Financial Reporting Standards Into The United States Financial Reporting System: Timeline And Implications

2012 ◽  
Vol 11 (3) ◽  
pp. 283 ◽  
Author(s):  
RamMohan R. Yallapragada
Keyword(s):  
United States ◽  
Multinational Corporations ◽  
Financial Reporting ◽  
Accounting Standards ◽  
The United States ◽  
Capital Allocation ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
The Us

In the United States of America (US), all the accounting procedures and guidelines for measurement and reporting by business firms are governed by a body of principles and concepts known as Generally Accepted Accounting Principles (GAAP). These GAAP are presently issued by the Financial Accounting Standards Board (FASB) with the authority delegated by the Securities and Exchange Commission (SEC). Historically, each country developed its own GAAP and there was no uniformity among the GAAPs of different countries. Comparison of financial statements issued by business firms from different countries has become impossible leading toward suboptimal capital allocation across countries in the world. Gradually, with the advent of multinational corporations, there emerged a global demand for convergence of GAAP of different countries into a single set uniform accounting standards applicable to all countries. Initiative for uniform global accounting standards came from International Accounting Standards Committee (IASC) which was established in 1973. The IASC formed International Accounting Standards Board (IASB) in 2001 which began issuing International Financial Accounting Standards (IFRS). Till now about 100 countries have adopted IFRS for their financial reporting purposes. The SEC has yielded to the global pressure to adopt IFRS in the US. SEC has set a timeline for US business firms to change over from US GAAP to IFRS. This paper presents the background and development of the movement of IFRS, timeline for the change in US and the implications involved in the adoption of IFRS in the US.

scholarly journals Genesis of the Definition “Goodwill” as Economical Category: International and Russian Aspect

2019 ◽  
Vol 62 ◽  
pp. 01004
Author(s):  
O.A. Kuzmenko ◽  
A.M. Dyachkova-Politi
Keyword(s):  
United States ◽  
Financial Reporting ◽  
Russian Federation ◽  
The United States ◽  
Reporting Standards ◽  
Historical Trends ◽  
Financial Reporting Standards ◽  
Accounting Practice ◽  
Russian Aspect ◽  
Further Development

The article is devoted to formation of the definition “Goodwill” in Russian accounting practice based on historical trends, regulations and standards. During the research the definition was explored from legal stand point, were considered major milestones in its development and, as a result, it was concluded that further development will be necessary due to acceptance of the International Financial Reporting Standards on territory of Russian Federation. It compares experience of the United States and Russia in regulation of the definition and its realization and recognition in financial reporting. As an economic category goodwill have gone through development of the definition reputation to the leading indicator of the company’s stability in merger and acquisition process. From this position, usage of goodwill in consolidated financial reporting is crucial and requires development of the mechanisms for implementation and guardianship of the intangible assets, its proper amortization and impairment.

scholarly journals THE FUTURE OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS IN THE UNITED STATES: CONSIDERATIONS ON THE CRITICAL QUESTION

2019 ◽  
Vol 34 (1) ◽  
pp. 37-48
Author(s):  
Hristina Oreshkova
Keyword(s):  
United States ◽  
Financial Reporting ◽  
Accounting Standards ◽  
The United States ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Critical Question ◽  
Financial Reporting Standards ◽  
The U.S ◽  
Strategic Goal

In the present article a subject matter that has attracted great interest over the recent decades is discussed. The critical question of the likelihood of adopting the International Financial Reporting Standards in the United States has raised a lot of debates around the world. The problem has been the focus of long-lasting and profound deliberations among both scientific and professional community.Our research found out that the strategic goal of reaching one single set of global accounting standards through the project of convergence developed by the most influential Boards in the world – the International Accounting Standards Board located in London with second headquarters in Tokyo, and the U.S. Financial Accounting Standards Board has not been achieved. It is appropriate to emphasize that the realisation of the convergence project began in 2002 as a result of the Norwalk agreement achieved in September 2002, Norwalk, Connecticut, USA. However, it is increasingly recognized that the era of convergence is coming to an end.Prominent scholars argue that the strategic goal turned out to be neither practical nor achievable in the foreseeable future. For the time being the authorized American institutions do not intend to fully adopt the International Financial Reporting Standards as issued by the IASB into the U.S. financial reporting system. Moreover the authoritative organizations in the United States attempt to continue keeping in line with specifics of the U.S. business environment. It is assumed that the Securities and Exchange Commission will never perhaps risk causing a political storm by yielding the control on its accounting to an institution outside the USA.An essential reason that causes inconveniences in the implementation of the IASB’s accounting standards and the principles is that the accounting standards interact in different ways with national laws, social and ethic codes, domestic fiscal rules and guidelines, and that is unavoidable. However, in each state and jurisdiction the interaction has its essentials and specifics. Complications may arise out of the local tradition, culture and historical continuity in performing accounting as a practice as well as by the legal doctrine and the degree of their interrelation. No less important are the essence and peculiarities of the national legal and accounting system, the extent of cultural impacts on the contemporary development of accounting as well as the principles on the basis of which the systems of state authority are established, interact and function.

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