Got a tricky question? Receive an answer from students like you! Try us!

The International Convergence Project - Assignment Example

High school
Finance & Accounting
Pages 8 (2008 words)
Download 1


The International Convergence Project Table of Contents Table of Contents 2 Introduction 3 International Convergence Project & Its Relevance 4 Current Situation of Global Convergence 8 Conclusion 12 References 13 Introduction This project includes a discussion on International Convergence Project being carried out by IASB through the IFRS guidelines…

Extract of sample
The International Convergence Project

Globalization has undoubtedly contributed to the economic growth in developed as well a developing countries through the principle of comparative advantage and increased specialization. With the benefits of globalization, the policy makers have also recognized the need for uniform disclosures by firms engaged in multinational businesses. As accounting is a universal language for business, it becomes all the more important to have sound and comparable accounting principles to enable the capital providers, analysts and regulators to understand the health of business and make relevant decisions. Understanding this need the standard setters have come up with the international convergence project for uniform accounting standards. This project includes the discussion on need for uniform accounting standards in modern financial world. The benefits that accrue on behalf of adoption of single accounting standard framework by majority of the countries have also been provided. Furthermore the empirical evidence post-IFRS adoption by European firms has been included. Lastly the current state of convergence project has been provided. ...
Download paper
Not exactly what you need?

Related Essays

Macroeconomic Convergence, Development And Growth.
The convergence process is dependent on a large number of factors such as the population growth, speed of capital formation and the presence of efficient economic policies as well as appropriate financial institutions. Along with this the accumulation of human and physical capital are important as it significantly influences the savings and rate of investment (Halmai & Vasary, 2009, p.3). Technological spread, change in growth rate and total productivity of the factors are the major players in enhancing the rate of convergence (Halmai & Vasary, 2009, p.3). As per professor Jeffrey Sachs,…
11 pages (2761 words)
GAAP stands for General accepted accounting principles and are the set of standards developed by US, keeping their needs in mind. On the other hand, IFRS stands for international financial reporting standards are standards developed by UK. In the past financial statements were relevant to these respective countries only but globalization has called for the need of one set of standards. Convergence of international accounting refers to the goal and the path taken to reach one set of standards that are followed throughout the world. The goal is to eliminate the differences and to improve the…
4 pages (1004 words)
Explain why Listed Companies Produce Financial Statements for Externals Users and how These are Regulated in the UK
According to Tracy, J. (2009), these users are interested in “four basic financial aspects of a business”. These four are the “sales revenue and profit or loss performance”, the “financial particular the solvency prospects of the company, the capital issued by the company and “any other claims that directly or indirectly participate in the profit of the business” and the sources and uses of the company’s cash flows (Tracy, 2009). Financial statements are especially critical for listed or public companies. These are the companies that are in the centre of the…
8 pages (2008 words)
International Finance International Investing Project
The explanations will offer insight on what is driving the valuations of the U.S.-based MNCs and the foreign stocks over time. Select two stocks of U.S.-based MNCs that you want to include in your portfolio. If you want to review a list of possible stocks or do not know the ticker symbol of the stocks you want to invest in, go to the website http:/, which lists stocks alphabetically, or to http:/, which lists stocks by sectors or industries. Make sure that your firms conduct a substantial amount of international business. Next, select two foreign stocks that are…
Convergence from GAAP to IFRS
The paper will further discuss the benefits, which will accrue to United States firms, investors, and the economy as a whole, as a result of converging from United States Generally Accepted Accounting Principles to International Financial Reporting Standards. Convergence from Generally Accepted Accounting Principles to International Financial Reporting Standards Currently, International Financial Reporting Standards are used by more than 12,000 companies in the world and have been in use in over 100 countries around the globe. According to Kaiser et al. (2012), there are various ongoing…
4 pages (1004 words)
convergence between GAAP and IFRS
Furthermore, consideration in respect of financial statement presentation and business combination is required significant convergence (Kaiser et al., 2012). Challenges and Benefits of Convergence As far as the convergence is concerned, it can be observed that US public listed companies will be benefitted more if they adopt IFRS as an obligation from SEC. There are various difficulties as well as benefits of adoption of IFRS as a means of convergence. The major difficulty that may arise due to such convergence is the transition of financial statements from US GAAP to IFRS. The transition will…
4 pages (1004 words)
IFRS and GAAP Convergence
When the financial statements are available in annual reports, it is the responsibility of the managers to evaluate and discuss results of company performance. External parties use these financial statements to analyze the company’s financial performance. Therefore, external users of financial statements are requires to be familiar with the tools and techniques which are used in financial performance analysis (Needles, Powers and Crosson, 2010, p.1270). Financial analysis includes the analysis of income statement and the assets and liabilities in the balance sheet. It can be done by…
4 pages (1004 words)