International Accounting

Topics: International Financial Reporting Standards, Financial statements, Electricity generation Pages: 20 (5418 words) Published: September 1, 2013
| 2012|
| QUT
08/10/2012|

AYB 227: International Accounting:Individual Assignment|
Name: Chuan Yang - LiStudent no: n7592736Word count: 1461|

Executive summaryi
Introduction1
Development factors and culture characteristics of country1 * United Kingdom1
* Germany2
* Japan2
Hofstede’s cultural dimensions2
Accounting Practices predictions3
Opacity Impacts on Business Investments4
Limitations in Financial Reports, with respect to Ratios and Accounting Practices4
Conclusion5
Recommendations5
Appendix 6
Appendix 1 – Development factors of UK, Germany and Japan7
Appendix 2 – Hofsted’s social dimension model 9
Appendix 3 – Gray’s Accounting Values 9
Appendix 4 – Strength and Weaknesses of Hofstede’s Model11
Appendix 5 – Opacity Index12
Appendix 6 – Consequences of Opacity Scores13
Appendix 7 – Corruption Perceptions Index15
Appendix 8 – Corruption 16
Appendix 9 – Limitations/Hindrances to Financial Reporting 17
Appendix 10 – Coping Mechanisms23
Appendix 11 – Ratios25
Appendix 12 – Company Outlooks27
Appendix 13 – Movement IFRS30
References
Executive summary
Tasman Sea and Oil Gas Company Limited (TSOGCL) the one of Australia’s largest oil and gas producer. The company is looking to enter a new opportunity of global expansion activities via existing foreign companies.

The following of the report will analysis the three annual reports in the Electric and Gas Utilities industries. This three electric company are; Centrica (UK), Vattenfall (Germany) and Chubu Electric Power (Japan). Through this analysis an extensive range of data needed to be collected in order to make the best decision for TSOGCL investing.

Furthermore, is to determine the development factors of the three countries and how they relate to the Hofstede’s cultural dimensions model and Gray’s model and furthers' is used as a basis when comparing other data.

Last, three different company's financial report will be evaluated and three limitations/hindrances were discovered when comparing and contrasting the three reports. The issues of Timeline, Currency, Auditors, Accounting practices, etc will might occur in the financial report in three different countries. Those limitations may affect the accuracy when accessing the data in the future. The opacity levels of each country needed to be determined, as well as any outside factors like corruption which could have affected the decision.

Last, it was found out that Japan was extensively dominated by their Governments and weren’t complying with the right version of International Reporting Standards (IFRS). UK is also in danger with euro debt crisis, etc.

Therefore, it was chosen that Vattenfall (Germany) would be the best investment opportunity for TSOGCL.

Introduction
Culture has effect people very deeply. Cultural effect country's accounting system, social, national, international and economic factors, etc. Geert Hofstede, a philosopher who advocates the theory of culture dimensions which has linked the culture into business practices. Geert Hofstede has impact strongly to the culture and gives a measure mode and high investment opportunity to a country or to a company.

The following of the report will analysed and evaluated the three annual reports in the Electric and Gas Utilities industries. This three electric company are; Centrica (UK), Vattenfall (Germany) and Chubu Electric Power (japan). Through this analysis their similarities and differences on their accounting systems, an extensive range of data needed to be collected in order to make the best decision for TSOGCL investing. Development factors and culture characteristics of country

The three countries’ development factors; such as taxation, level of economic development educational level and culture, legal systems, taxation, finance, inflation, political and economic ties, etc. All of these factors are all the main factors that...

References: Chubu Electric Power, (2012). Chubu Electric Power Retrieved from:
http://www.chuden.co.jp/english/index.html?srid=lg
Centrica Pls. (2012). Centrica Pls. Retrieved from:
http://www.centrica.co.uk/index.asp?pageid=1
Centrica Pls. (2011). Annual Report 2011. Retrieved from
http://www.centrica.co.uk/files/reports/2011ar/index.asp?pageid=65
Vattenfall. (2011). Annual report 2011. Retrieved from
http://www.vattenfall.de/de/file/Geschaeftsbericht-VAB-2011-eng_20346419.pdf
Chubu Electric Power. (2012). Financial Report. Retrieved from
http://www.chuden.co.jp/english/resource/ir/FY2011%20Financial%20Report.pdf
Vattenfall. (2005). Annual Report. Retrieved from
http://www.vattenfall.de/de/file/Geschaftsbericht-VAB-2005_13592884.pdf?WT.ac=search_success
Chubu Electric Power. (2012). Financial Ratio. Retrieved from
http://www.chuden.co.jp/english/ir/eir_financial/efin_managementindexdata/eman_financialratio/index.html
Central Intelligence Agency (CIA). 2011. Library: The World Fact Book. https://www.cia.gov/index.html (accessed May 5, 2011).
ClearlvCultural. 2010. Geert Hofstede cultural dimensions. http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/ (accessed May 5, 2011).
Doupnik, T
Hofstede, G. 2004. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill.
Kurtzman, J
Kurtzman, J., G.Yago. and T.Phumiwasana. (2009). The Opacity Index 2009 – The Measuring Global Risks – Measuring Business and Investment Risk Worldwide. Retrieved from: http://www.kurtzmangroup.com/pdf/InstituteOpacityIndex_Apr8.pdf
Sondergaard, M
Dictionary.com. (2011). Stock Exchange. Retrieved from
http://dictionary.reference.com/browse/stock+exchange
Horngren, et al. (2007). Chapter 19: Financial Statement Analysis. Financial Accounting – 6th
Edition
[ 20 ]. Jones, 2007, p6
[ 21 ]
[ 22 ]. Jones, 2007, p6
[ 23 ]
[ 24 ]. Jones, 2007, p5
[ 25 ]
[ 26 ]. Jones, 2007, p5
[ 27 ]
[ 28 ]. Kurtzman, et al, 2009
[ 29 ]
[ 30 ]. Kurtzman, et al, 2009
[ 31 ]
[ 32 ]. Transparency International, 2010
[ 33 ]
[ 34 ]. Horngren, et al, 2007
[ 35 ]
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Positive Accounting Theory Research Paper
  • Discuss the Changes That Occurred in Financial Accounting over the Last 2 Years. Essay
  • Advantages and Cost of Adoption in Australia of International Financial Reporting Standards (Ifrss) Essay
  • International Accounting Standards Essay
  • Speech on accounting Essay
  • International Financial Reporting Standards and Accounting Standards Essay
  • Accounting Regulations Essay
  • Accounting Standards Essay

Become a StudyMode Member

Sign Up - It's Free