Accounting Reporting Criteria Paper
Accounting reporting criteria includes many factors and covers many elements. From Fundamental Financial Accounting Concepts, “accounting is so important that it is often called the language of business. In fact, accounting affects not only individual businesses but also society as a whole” (Edmonds, Edmonds, McNair, Olds, & Schneider, 2006, p. 4). Global business requires added consideration in the way of accounting reporting criteria. With heightened consumer protection becoming increasingly important, regulation of American reporting criteria such as The Sarbanes-Oxley Act (SOX) is common to hear or the Security Exchange Commission’s (SEC) requirement of management submitting a financial statement in an organization’s report. Since so much publicity has been given to U.S. reporting regulations even more difficultly is to identify the regulations in foreign reporting criteria. Many countries do not have the high level of regulations that America has. This makes it extremely important for internationally operating organizations to understand and embrace best practices in financial reporting across borders. The challenges for a U.S. company to deal with a foreign company are regulatory environment, issues with foreign currency, and the differences in general accepted accounting principles. One example of a collaborative effort to create and unify reporting standards across borders is the International Accounting Standards Board (IASB). The IASB is a regulatory environment and was formed in hopes of overseeing unification in the way of international accounting standards (International Accounting Standards Board, 2008). The IASB is a strong supporter of the International Financial Reporting Standards (IFRS) (International Accounting Standards Board, 2008). The IFRS is a standard best practices guide for financial reporting covering many areas in the content of financial statements and reporting (Wikipedia, 2008). Although its...
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