Page last modified 19:34, 29 Apr 2009 by WileyAdmin
Table of contents
No headersOBJECTIVES
- The International Accounting Environment
- Rationale
- Challenges
- Key Players
- Pronouncements
- Convergence
- Conclusion
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THE INTERNATIONAL ACCOUNTING ENVIRONMENT
Most agree that, for the following reasons, there is a need for one set of globalized accounting standards.
Multinational corporations. Today companies view the entire world as their market. Some of the best-known corporations, such as Coca-Cola, Intel, and McDonald’s, generate more than 50 percent of their sales outside the United States. These organizations no longer think of themselves as simply U.S. companies. The same situation is occurring overseas as many foreign companies find their largest market to be the United States.
Mergers and acquisitions. All you have to do is look in the Wall Street Journal to quickly understand the merger activity taking place between companies from different countries. The merger of such an international giant as Vodafone/Mannesmann suggest that we will see even more of this type of merger in the future.
Information technology. We have witnessed an incredible transformation in the speed and scale of communications among companies and individuals across borders. As communication barriers continue to drop, companies and individuals in different countries and markets are becoming comfortable buying and selling goods and services from one another.
Financial markets. Financial markets are some of the most significant international markets today. Whether it is currency, equity securities (stocks), bonds, or derivatives, there are active markets throughout the world trading these types of instruments. With the touch of a computer key, billions of dollars are transferred from one market to another.
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