Financial Accounting

Case 2: Variety is the Spice of Life skepticism 1: Due to the environmental factors that shape account mystifyments in several(predicate) countries, using scarcely one uniform account and state standard whitethorn not represent a pull win situation for all concerned. By using exactly one invoice system within a international company can having very assorted effects in all areas. Since countries use and arrive at disagreeent accounts systems, rules and regulations, monetary cut throughs at the end of a year allow take issue which may cause a negative effect on any country if only one uniform write up and account standard was employ. Question 2: When using accountancy system tuition the primary role of accounting in former(a) countries must be identified and understood that they result differ than their country. The penchant and information within a financial report will be affected. How accounting reports are interpreted and used will be in fluenced. This can impart both reinforcements and disadvantages. The environmental factors which are likely to shape accounting development in a country are a great advantage to have diversified accounting practices and standards.

Each country would therefore be able to develop their accounting standards based mop up of the sideline factors: * Nature of capital markets * Type of Reporting * surface and complexness of business entities * Type of legal systems * Level of enforcement * estimate of inflation * policy-making and economic ties with other countries * Stature of accounting profession * Ex! istence of abstract framework * Quality of accounting education With these factors in mind, countries are able to develop accounting standards that best suit their needs. This can allow for soothe in due reporting. One of the major disadvantages of having a diverse accounting standard within different countries is the ability to have the like information on the reports. A country with high up financial reporting and disclosure...If you want to get a suitable essay, order it on our website: OrderCustomPaper.com

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