Comparative International Accounting 9781292081908, 1292081902

Table of contents :
Cover......Page 1
Title page......Page 4
Copyright page......Page 5
Brief contents......Page 6
Contents......Page 8
Contributors......Page 17
Preface......Page 18
Part I SETTING THE SCENE......Page 24
Objectives......Page 26
1.1 Differences in financial reporting......Page 27
1.2 The global environment of accounting......Page 28
1.3 The nature and growth of MNEs......Page 38
1.4 Comparative and international aspects of accounting......Page 41
1.5 Structure of this book......Page 44
Summary......Page 46
References......Page 47
Useful websites......Page 48
Questions......Page 49
Objectives......Page 50
2.2 Culture......Page 51
2.3 Legal systems......Page 54
2.4 Providers of finance......Page 56
2.5 Taxation......Page 60
2.6 Other external influences......Page 64
2.7 The profession......Page 65
2.8 Conclusion on the causes of international differences......Page 66
2.9 Some examples of differences......Page 67
Summary......Page 75
References......Page 76
Questions......Page 80
Contents......Page 81
3.1 Introduction......Page 82
3.3 Classifications by social scientists......Page 83
3.4 Classifications in accounting......Page 85
3.5 Extrinsic classifications......Page 89
3.6 Intrinsic classifications:1970s and 1980s......Page 94
3.7 Developments related to the Nobes classification......Page 99
3.8 Further intrinsic classification......Page 101
3.9 Is there an Anglo-Saxon group?......Page 102
3.10 Classification in an IFRS world......Page 103
3.11 A synthesis of accounting classifications......Page 104
Summary......Page 106
References......Page 107
Questions......Page 111
Contents......Page 112
4.1 Introduction......Page 113
4.2 Reasons for, obstacles to and measurement of harmonization......Page 114
4.3 The International Accounting Standards Committee......Page 117
4.4 Other international bodies......Page 126
4.5 The International Accounting Standards Board......Page 130
References......Page 135
Useful websites......Page 138
Questions......Page 139
Part II FINANCIAL REPORTING BY LISTED GROUPS USING IFRS OR US GAAP......Page 140
Objectives......Page 142
5.1 Introduction......Page 143
5.3 Adoption of, and convergence with, IFRS......Page 144
5.4 IFRS in the EU......Page 148
5.5 IFRS/US differences......Page 151
5.6 Convergence of IFRS and US GAAP......Page 156
5.7 Reconciliations from national rules to US GAAP or IFRS......Page 157
5.8 International financial analysis......Page 159
Summary......Page 167
References......Page 168
Questions......Page 172
Contents......Page 174
6.1 Introduction......Page 175
6.2 The conceptual framework......Page 177
6.3 Presentation and accounting policies......Page 182
6.4 Revenue and foreign currency transactions......Page 184
6.5 Assets......Page 185
6.6 Liabilities......Page 189
6.7 Group accounting......Page 190
6.8 Disclosures, and management commentary......Page 192
6.9 Synthesis: the sources of the content of IFRS......Page 193
Summary......Page 194
Useful websites......Page 195
Questions......Page 196
Appendix 6.1 An outline of the content of International Financial Reporting Standards......Page 197
Objectives......Page 209
7.2 Motivations for varied IFRS practice......Page 210
7.3 Scope for varied IFRS practice......Page 212
7.4 Examples of varied IFRS practice......Page 219
7.5 Changes in IFRS practice over time......Page 221
7.6 Implications......Page 222
References......Page 223
Questions......Page 225
Contents......Page 226
8.1 Introduction......Page 227
8.2 Regulatory framework......Page 228
8.3 Accounting standard-setters......Page 232
8.4 The conceptual framework......Page 235
8.5 Contents of annual reports......Page 238
8.6 Accounting principles......Page 243
8.7 Consolidation......Page 250
8.8 Audit......Page 252
8.9 Differences from IFRS......Page 253
Summary......Page 255
References......Page 256
Further reading......Page 257
Questions......Page 258
Contents......Page 259
9.1 Introduction......Page 260
9.2 Revenue recognition......Page 261
9.3 Recognition of intangible assets......Page 263
9.4 Measurement of assets......Page 265
9.5 Financial instruments......Page 267
9.6 Provisions......Page 271
9.7 Employee benefits......Page 275
9.8 Deferred tax......Page 279
9.10 Comprehensive income......Page 284
Summary......Page 287
References......Page 288
Questions......Page 289
Objectives......Page 290
10.1 Introduction......Page 291
10.2 Motivations for political lobbying......Page 292
10.3 Political lobbying up to 1990......Page 294
10.4 US political lobbying from 1990......Page 304
10.5 Political lobbying of the IASC/IASB......Page 309
10.6 Preparer attempts to control the accounting standard-setter......Page 314
10.7 Political lobbying of the FASB’s convergence with the IASB......Page 316
Summary......Page 318
References......Page 319
Useful websites......Page 321
Questions......Page 322
Part III CHINA AND JAPAN......Page 324
Contents......Page 326
11.1 Introduction......Page 327
11.2 Japan: regulatory issues......Page 328
11.3 Japan: accounting practices......Page 336
11.4 Japan: differences from IFRS......Page 341
11.5 China: regulatory issues......Page 343
11.6 China and IFRS......Page 347
References......Page 351
Questions......Page 354
Appendix 11.1 ASBE Standards......Page 356
Part IV FINANCIAL REPORTING BY INDIVIDUAL COMPANIES......Page 358
12.1 Introduction......Page 360
12.2 Outline of differences between national rules and IFRS or US GAAP......Page 361
12.3 The survival of national rules......Page 363
12.4 Financial reporting, tax and distribution......Page 365
12.5 Special rules for small or unlisted companies......Page 366
References......Page 370
Useful websites......Page 371
Questions......Page 372
Objectives......Page 373
13.2 Harmonization within the European Union......Page 374
13.3 Transition in Central and Eastern Europe......Page 381
References......Page 390
Useful websites......Page 393
Questions......Page 394
14.1 Introduction......Page 395
14.2 Who makes the accounting rules?......Page 396
14.3 Which business enterprises are subject to accounting rules?......Page 406
Summary......Page 411
References......Page 412
Further reading......Page 413
Useful websites......Page 414
Questions......Page 415
Appendix 14.1 Contents of the Plan comptable général (relating to financial accounting and reporting)......Page 416
Appendix 14.2 Financial accounting chart of accounts, Classes 1–7 in the Plan comptable général (ANC’s translation of 1999 chart, adjusted for changes in 2014)......Page 417
15.1 Introduction......Page 419
15.2 France......Page 420
15.3 Germany......Page 424
15.4 United Kingdom......Page 430
Summary......Page 431
References......Page 432
Questions......Page 433
Appendix 15.1 Formats for French financial statements (2014 plan comptable)......Page 434
Appendix 15.2 Formats for German financial statements (before implementation of the 2013 revised Directive)......Page 437
Appendix 15.3 Formats for British financial statements (before implementation of the 2013 revised Directive)......Page 440
Part V GROUP ACCOUNTING ISSUES IN REPORTING BY MNEs......Page 444
Objectives......Page 446
16.2 Rate of adoption of consolidation......Page 447
16.3 The concept of a ‘group’......Page 448
16.4 Harmonization from the 1970s onwards......Page 450
16.5 Definitions of entities in which the group invests......Page 453
16.6 Techniques of consolidation......Page 456
16.7 Publication requirements and practices......Page 462
References......Page 464
Questions......Page 465
Contents......Page 466
17.1 Introduction......Page 467
17.2 Translation of transactions......Page 470
17.3 Introduction to the translation of financial statements......Page 475
17.4 The US initiative in the 1970s......Page 478
17.5 The temporal method versus the current rate method......Page 481
17.6 Current US GAAP......Page 486
17.7 Current IFRS......Page 488
17.8 Translation of comprehensive income......Page 490
17.9 Accounting for translation gains and losses......Page 493
17.10 Research findings......Page 499
17.11 An alternative to exchange rates?......Page 502
Summary......Page 503
References......Page 504
Questions......Page 505
18.1 What is segment reporting?......Page 506
18.2 Segment reporting regulations......Page 509
18.3 Constraints on the benefits of segment reporting......Page 519
18.4 Assessing the benefits of segment reporting......Page 523
Summary......Page 531
References......Page 532
Questions......Page 535
Part VI MONITORING AND ENFORCEMENT......Page 536
Objectives......Page 538
19.1 Introduction......Page 539
19.2 Reasons for the internationalization of auditing......Page 541
19.3 Promulgating international standards......Page 546
19.4 The international audit process......Page 553
Summary......Page 565
References......Page 566
Questions......Page 567
20.1 Introduction......Page 568
20.2 Modes and models of enforcement......Page 570
20.3 United States......Page 573
20.4 European Union......Page 574
20.5 West Pacific Rim......Page 581
Summary......Page 582
References......Page 583
Questions......Page 586
Synoptic table of accounting differences in eight GAAPs, 2015......Page 588
Glossary of abbreviations......Page 591
Suggested answers to some of the end-of-chapter questions......Page 597
Author index......Page 615
Subject index......Page 619