Global Accounting Essay

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Information on the origin and development of global financial reporting including the driving forces behind it. Comparability of financial information which was thought to be greed had always been presumed one of the driving forces behind U.S. accounting standards. Implications of events and transactions in international commerce and finance began to impact the domestic accounting environment. The mission of the FASB was revised at that time to incorporate the objective of promoting the international comparability of accounting standards concurrent with improving the quality of financial reporting. Accounting definitely encompasses many different aspects such as assumptions, principles and concepts. Financials particularly financial statements and reporting is extremely important within the history and driving forces for better accounting processes and standards. Accounting theory also looks into the historical foundations of accounting practices and standards – and the accounting rule making process by which they are derived. Accounting historically can be viewed as a highly constructive and analytical discipline which requires very specific answers that are either correct or incorrect. The driving forces with regards to FASB has created an important …show more content…

GAAP and IFRS. These include - Revenue Recognition, Leases, Financial Instruments, Consolidations, De-recognition, Fair Value Measurement, Financial Statement Presentation, and Financial Instruments with Characteristics of Equity. Certain IFRS/GAAP differences may be adjusted through General Ledger journal entries or chart of account structuring and do not require system changes at the sub-ledger level. This approach will however, vary depending on the structure that the organization has in place as well as the environment described above in Potential System Impacts of an IFRS

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