Financial Reporting

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Recommended: Similarity between IFRS and GAAP

Financial Reporting Generally accepted accounting principles (GAAP) are uniquely different for each country. Although there has been a push for International Financial Reporting Standards (IFRS) to be the new accounting standards for both domestic and foreign financial statements, local GAAP still remains the current standard for participating countries (CFO, 2008). Regulations regarding an organization’s regulatory environment and issues with foreign currency vary within domestic and foreign companies. The differences in GAAP also vary between the two. When U.S. companies do business overseas, they must also follow certain rules regulated by the Foreign Corrupt Practices Act (FCPA). According to CPE Inc. (2008), “Every company and employee directly or indirectly involved in a foreign operation should have a working knowledge of the FCPA (para. 4). The Financial Accounting Standards Board (FASB) is the U.S. organization that creates the rules and regulations domestic companies must abide by according to GAAP. In addition, “Corporations whose stock is publicly traded must also comply with the reporting requirements of the Securities and Exchange Commission (SEC), an agency of the U.S. government” (para. 4). Abiding by the established standards will help ensure that ethical business practices are upheld across borders. Accounting Reporting Criteria Paper United Technologies Corporation (UTC) is a global conglomerate and provider of “high technology products and services to building systems and aerospace industries” (UTC, 2008). With corporate world headquarters located in Hartford, Connecticut; UTC was the 42nd largest corporation in the United States in 2007 with more than 4000 locations in approximately 62 countries (UTC,... ... middle of paper ... ...ives UTC. (2008). Facts and Figures. Retrieved November 6, 2008, from http://www.utc.com/utc/About_ UTC/Fast_Facts.html UTC (2008) Financials. 2007 Annual Report, Retrieved November 6, 2008 from http://www.utc.com/utc/Static%20files/Company%20Reports/Annual%20Reports/2007/2007_utc_annual_report.pdf Clark, N. (2007, November 27). Airbus' Currency Exchange Troubles Could Multiply. Retrieved November 9, 2008, from International Heral Tribune: http://www.iht.com/articles/2007/11/23/business/airbus.php Financial Statements. (2004). Retrieved November 9, 2008, from EADS Annual Report 2004: http://www.reports.eads.net/2004/ar_2004/en/downloads/Book2/financial_statements_and_corporate_governance.pdf Sacho, Z. Y. (2006, Novembert). The effect of Europes transition to IFRS. Retrieved November 9, 2008, from BNET: http://findarticles.com/p/articles/mi_qa5377/is_/ai_n21402335

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