international accounting

L/O/G/O International Accounting Tang Tri Hung, PhD. Content ►Concept ►International accounting Collation ► Reconciliation – Accounting Convergence ►Research directions Is a wide field of study, including:  Accounting multinational companies (MNEs)  International accounting comparative  Accounting Convergence / International Standards The concept of international accounting  Factors affecting the national accounting system  Grouping national accounting system  The existing accounting differences International Accounting Collation  Business Environment  Legal Environment  Cultural Environment  Other factors Factors affecting the national accounting system  Securities Market  Banking  Households  State Business Environment * United States includes American SE, SE Group and NASDAQ New York ** Japan includes Tokyo SE and Osaka SE *** Euronext includes France, Portugal, the Netherlands and Belgium Source: www.word-exchanges.org Some figures Countries 1996 2006 GDP Market values % Of GDP GDP Market values % Of GDP UK 1,106.7 1,346.6 121.7% 2,109.0 3,058.2 145.0% United States* 7,245.8 6,917.7 95.5% 12,487.2 17,437.7 139.6% Canada 568.6 366.3 64.4% 1,175.4 1,482.2 126.1% Australia 348.8 244.3 70.1% 680.0 804.0 118.2% Euronext*** 2,333.4 906.8 38.9% 3,134.4 2,706.8 86.4% Japan 4,393.8 3,667.3 83.5% 4,259.2 4,758.5 111.7% Germany 2,259.3 577.4 25.6% 2,650.8 1,221.1 46.1% A few figures Countries The proportion of investors in securities market (1994) Individuals Companie s State Financial organizations Foreign UK 18 2 1 62 16 United States 48 9 0 37 6 Germany 17 42 6 19 17 France 32 16 6 23 22 Japan 20 28 1 42 8 Source: Berglof (1996 – Stock Exchange Quartely, Summer 1995) * United States includes American SE, New York SE Group and NASDAQ ** Japan includes Tokyo SE and Osaka SE *** Euronext includes France, Portugal, the Netherlands and Belgium Source: www.word-exchanges.org Some figures (Billion USD) Countries Market Values 2006 The value of domestic transactions in 2006 The value of international transactions in 2006 UK 3,058.2 4,283.6 3,288.1 United States* 17,437.7 29,901.4 2,507.4 Canada 1,482.2 1,273.1 8.7 Australia 804.0 824.4 35.2 Euronext*** 2,706.8 3,833.9 19.4 Japan** 4,758.5 6,024.5 1.4 Germany 1,221.1 2,483.4 253.8 Inflationary • The development of the accounting system is based on current prices (CCA) and constant purchasing power (CCP). • The accounting system of the countries in South America Business Environment [...]... to accounting Common law Accounting are only prescribed in a few laws, usually in Corporate Law Roman law  Accounting is prescribed meticulous, detailed in the laws, for example the Commercial Law or Corporate Law In some countries, there is a separate set of accounting rules Legal Environment Taxes and Accounting Influence of Tax to Accounting  Trend 1: The tax does not affect the accounting Accounting... Institutionalization (legal, capital markets, professional organizations, education, religion ) Accounting culture Accounting regulations Accounti ng System Model Gray (1998) External environment Culture (including institution al structures ) The supply power system of external capital The different accountin g systems Grouping national accounting system  Simple classification The Anglo-Saxon school The Europe mainland... Germany France Japan * Source: IFAC, up to the time 2005-2006, excluding trainees, associate members ** Source: NationMaster.com, 2006 60,6 82,4 60,9 127,5 Cultural Environment  Accounting is the language of business, so that accounting can not escape from the cultural environment  Identifying the elements of the cultural environment is a difficult issue  The different viewpoints Cultural Environment... 65 31 Japan 46 54 92 80 Cultural Environment Hofstede – Gray Model (continue)  Gray developed the theory of Hofstede in the accounting field into cultural values: Professionalism / Statutory control Uniformity / Flexibility Conservatism / Optimism Secrecy / Transparency 4 ACCOUNTING VALUE OF Sidney J.Gray • Professionalism versus Statutory control: The tendency to make a professional judgment and... tendency to comply with the legislation and under the control of the State • Uniformity versus Flexibility: The tendency to enforce the rules agreed between the accounting firm is opposed to the flexibility in each specific case of every business 4 ACCOUNTING VALUE OF Sidney J.Gray (cont.) • Conservatism versus Optimism: The trend cautious approach in measuring for the event with the uncertainty in the... interaction between countries: The former colonies The process of regional and international integration The former socialist country Cultural Environment  There are many other factors which are identified as politics, finance, geography  Some models attempt to systematize the factors or explain the change of the national accounting system Model Gray (1998) Influence from outside (nature, commerce,... and Accounting Influence of Tax to Accounting  Trend 1: The tax does not affect the accounting Accounting profit is related but independent of taxable profit  Trend 2: Tax dominant way of accounting records, accounting profit has to be closest to taxable profits Legal Environment Role of professional organizations State plays a crucial role, the professional organization’s are placed under the . study, including:  Accounting multinational companies (MNEs)  International accounting comparative  Accounting Convergence / International Standards The concept of international accounting  Factors. L/O/G/O International Accounting Tang Tri Hung, PhD. Content ►Concept International accounting Collation ► Reconciliation – Accounting Convergence ►Research directions Is. accounting  Factors affecting the national accounting system  Grouping national accounting system  The existing accounting differences International Accounting Collation  Business Environment 