Accounting
← Abstract
Faced with various issues of international accounting in cultural, economic, ethical and social level, after comparing US with China about the GAAP, analyzing the differences and difficulties in global accounting standard, it’s necessary to separate different accounting standards because of the diversification in different countries, it shows that accountancy professions play an important role in capital market, which can provide useful, relevant and reliable information to interested parties so that help them make decisions about financing, investing and allocating resources efficiently.
← Key words
Economic structure
Culture and ethics
Relevant, reliable useful information
Interested parties
Resources utilization
Accounting standard
True and fair
Substance over form
Accounting harmonization
← The issues of international accounting
1. Globalization The nature of globalization is the market economic globalization, different countries have their own economic and social systems, which are more appropriate for their developing condition. Even though global trade can make each country communicate closely in the international market, they will choose their national GAAP combined with the IFRS or IFAC, which might still cause some significant differences in the financial reports.
2. Credit crunch Credit crunch is a long-term financial crisis, which can influence the accounting standard a lot, using different accounting standards might shows totally different figures and information based on the same financial report by creative accounting. If the information affects the confidence of users, it will lead to the lack of clarity and trust. Credit crunch also cause the breakdown of accounting system, and it need quick and long-term fix, which is very difficult and complex in the international environment.
3. Needs of domestic economies Domestic corporations going public need to adjust their financial reports according to
Faced with various issues of international accounting in cultural, economic, ethical and social level, after comparing US with China about the GAAP, analyzing the differences and difficulties in global accounting standard, it’s necessary to separate different accounting standards because of the diversification in different countries, it shows that accountancy professions play an important role in capital market, which can provide useful, relevant and reliable information to interested parties so that help them make decisions about financing, investing and allocating resources efficiently.
← Key words
Economic structure
Culture and ethics
Relevant, reliable useful information
Interested parties
Resources utilization
Accounting standard
True and fair
Substance over form
Accounting harmonization
← The issues of international accounting
1. Globalization The nature of globalization is the market economic globalization, different countries have their own economic and social systems, which are more appropriate for their developing condition. Even though global trade can make each country communicate closely in the international market, they will choose their national GAAP combined with the IFRS or IFAC, which might still cause some significant differences in the financial reports.
2. Credit crunch Credit crunch is a long-term financial crisis, which can influence the accounting standard a lot, using different accounting standards might shows totally different figures and information based on the same financial report by creative accounting. If the information affects the confidence of users, it will lead to the lack of clarity and trust. Credit crunch also cause the breakdown of accounting system, and it need quick and long-term fix, which is very difficult and complex in the international environment.
3. Needs of domestic economies Domestic corporations going public need to adjust their financial reports according to