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Does the way in which accounting represents the world facilitate the control of organizations? - Essay Example
Finance & Accounting
Pages 5 (1255 words)
The development of international accounting standards streamlines the accounting function, such as those standards implemented by the International Accounting Standards Board (IASB), the development of internal business controls are often not linked specifically with accounting principles and activities…
They way in which accounting represents the world does not always facilitate the control of organizations. Representation versus control Not every nation has adopted the International Financial Reporting Standards (IFRS) delivered in 2001 by the IASB. Because of this, there are independent and corporate investors that have identified opportunistic tax havens across the world. The ability to utilize foreign business accounting practices as a means to shelter resources continues to cause problems with how other businesses internationally perform their strategic management functions. For instance, Singapore has amended its tax laws as it had not, until 2009, adopted global accounting standards (google.com, 2009). Previously, businesses operating in Singapore maintained the ability to act as corporate and private investor tax havens as financial reporting from businesses in this country were able to manipulate data in a methodology that would be considered illegal in countries using the IFRS. ...
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