Over the past decade, market oriented economic reforms occurred in Eastern Europe, Latin America, and Asia have resulted in the development of emerging capital markets and the need for the harmonization of international accounting standards (Harri, 1999). In Vietnam, the reform from Vietnam Accounting Standard (VAS) to International Financial Reporting Standard (IFRS), which allow all business from different part of the world speak “the same unique accounting and financial language”(Nguyen 2012), aims to further strengthen its relationship with Multinational Corporations and will enhance it sustaining economic growth. This essay is writing for the purpose of examining the possibility of IFRS adoption in Vietnam in the future. The first part of the essay briefly introduces the Vietnamese accounting reform from 1986, then, compare the current VAS and IFRS. Secondly, the essay explains the accounting system development in the theoretic framework of globalization. The following part focuses on weighing the benefits and challenges of IFRS adoption in Vietnam. Vietnam economic reform referred as “Doi Moi” launched in 1986 have transformed Vietnam from a “Soviet-style planned economy” to a “socialist-oriented market economy” and created a development success story (world bank, 2011). Macro-economic stabilization, the restructuring of the domestic economy and the steady integration in the region and the global economy has provided a strong socio-economic environment (EIAS, 2011), which positively affect the accounting reform. Based on economic reform as the background conditions, Vietnamese accounting reform can be divided into two major periods, from market economy with socialist orientation (1986-1995) towards globalization (1995 to pr... ... middle of paper ... ...ng standard and the conceptual framework that I studied in UK. As a result, I decide to combine these two topic together, analyzing the international accounting standard adoption in developing countries, particular in Vietnam, which is the country I was assigned for group report, in a globalization context. Regarding the group work done in the GIP module, the main difficulties faced in my group was the coloration and task allocation within a big group. I have found out that bigger group does not mean higher productivity. According to the attendance chart, we only have three or four group mate attend the meeting in the first two-week. As a result, we realized that just allocating task to individual and simply put all the individual work together is not sufficient enough to produce a report. In teamwork, communicating and discussing the individual work is important.
In order to ensure an organization’s financial order, auditors with international standards are a vital part. However, very few auditing companies exist in Afghanistan that can provide auditing services in compliance with international accounting standards. Fortunately, ACC is one of those few auditing firms that can confidently say that its auditing services are in the highe...
“The crisis of fair-value accounting: Making sense of the recent debate” Christian Laux and Christian Leuz, Accounting Organizations and Society 2009
Wolk, H., Dodd, J., & Tearney, M. (2003). Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South-Western College Pub.
On 11th September 2014 US lawmakers have sent a letter in which they have urged the House of Representatives to preserve cash-flow accounting method. The legislators have stated that the shift towards accrual accounting could be detrimental to businesses that have developed their business strategies on cash basis for years. Their argument in defence of cash accounting was that it allows a firm to have more disposable income at a time, increasing growth possibilities for small businesses. Moreover, being less complex, the method requires less funds to be spent on accounting processes. On the other hand, Fayez Choudhury suggested that government public sector’s cash accounting does not represent the true economic health of the government by
Hines, R. D. (1991). The FASB’s conceptual framework, financial accounting and the maintenance of the social world. Accounting organizations and society, 16(4), 313-331.
Accounting systems in Saudi Arabia was shown to be imported from developed countries. Although in Saudi Arabia, the accounting principle and structures were primarily constructed from Western countries, the new accounting system has been reformed to adapt the unique Saudi Arabian environment. The various factors might explain how the new accounting system emerges. This paper will analyze how the three main factors-economy environment, taxation policies and foreign accounting standards and principles affect accounting systems in Saudi Arabia.
In the past, Accounting standards in the US were set by the American Institute of Certified Public Accountants (AICPA). However in 1973, the Financial Accounting Standards Board (FASB) began writing and issuing US GAAP (FASB.org 2012). FASB’s Accounting Standards Codification (ASC) is the source of authoritative US GAAP for nongovernmental entities (DATABASE). As many companies began operating globally the need for consistent financial reporting standards arose. To meet this need, the International Accounting Standards Committee (IASC) was established in 1973 in London, England (Flesher 2008). The main goal of the IASC was to formulate International Accounting Standards (IAS) that could be used for large publicly traded companies, but progress was limited. In 2001, this committee was replaced by the International Accounting Standards Board (IASB). The IAS also switched to the use of International Financial Reporting Standards (IFRS) with the creation of the IASB (Jei-Fang Lew 2005). The introduction of the Euro served as a catalyst for these changes and crea...
The IASC Board approved the IASB (International Accounting Standards Board) Framework ( in April, 1989) which was a successor of the IASC Board, and it accepted its Framework in April 2001 (Wells, 2011)[ Wells, M J. C., (2011). Framework-based Approach to Teaching Principle-based Accounting Standards., Accounting Education: an international journal., 20(4), 303-316.]. International standards are developed by IASB which are named International Financial Reporting Standards (IFRS). Although IASB took the place of IASC with its accounting standards, its IAS (International Accounting Standards) is enforced by IASB until now. The conceptual framework is helpful when it is used to develop the setting of International accounting standards. First of
Many corporations weather US or Global; big or small, public or private, have adopted different accounting practices which have consequences to business owners, investors stockholders, managers and corporations. Over recent years, many countries are gearing towards and trying to converge the two practices between International Financial Reporting Standards as one standard to allow simplified financial reporting and eliminating the need for conversion. The International Accounting Standards Boards (IASB) is trying to bridge the gap between these two accounting standards into one
This essay will discuss the influence NZ Framework brings to financial reporting standards that included NZ GAAP based on the debate between principles-based and rule-based. In particular, it will portray: (1) the nature and orientation of financial reporting framework and GAAP; (2) the main improvement of NZ Framework and the applications framework guided in NZ GAAP.
IFRS are developed and published to promote the use of those IFRS in universal purpose financial statements and other financial reporting. General purpose financial statements are directed towards the common data needs of wide range of users. As it turns out, have different national accounting system is expensive for companies and investors. Companies need to keep a copy of the accounting system, and investors will be cautious about buying shares in the Corporation accounts they do not understand. This problem arises because accounting guidelines have developed over the centuries in which there are different needs from one another, the economy and the means of regulating.
Instead of setting guidelines for industry-specific reporting, IFRS offers standard guidance for the preparation of financial statements. By improving the international comparability and quality of financial data, these standards bring transparency in financial reporting and enable investors and other users of financial statements to make an informed economic decision. IFRS promotes comparability and harmonization. It is essential for the accounting practices in various nations to be coordinated particularly with regards to the multinational organizations that put resources in various
This assignment is dedicated to analyze the development of the accounting profession in Malaysia and evaluate the future direction of Malaysia’s accounting profession. Accounting defines as the process of identifying, recording, measuring and communicating the financial information. It shows the profits or loss for the period, the value of the of a firm’s assets, liabilities and owner equity. Accounting as a profession has a very important role to play in the economic development of any country. Accounting provide information on the resources that available to a firm and the outcome accomplish through their use. Accounting professional are prepared to provide essential guidance to help organizations achieve long-term financial,
...n der Laan Smith, J. (2010). The effect of institutional and cultural factors on the perceptions of earnings management. Journal of International Accounting Research, 9(2), 21-43. http://dx.doi.org/10.2308/jiar.2010.9.2.21
International Financial Reporting Standards (IFRSs) is a set of accounting standards developed by an independent, non-profit making organization popularly known as International Accounting Standard Board (IASB) which was created under the laws of state of Delaware, United States of America, on 8 March, 2001 (IFRS foundation) (IFRS.org, 2017) The objective of the IFRS is to present a unique and comparable accounting framework on how to prepare and disclose their financial statements globally. (Cotter, D., 2012) The most important change that occurred in the history of accounting was the adoption of International Financial reporting standards all around the world.