Why study international accounting?

NOTE: These notes are prepared solely for the students in Acc 611. They are not to be used for any other purpose without the permission of Jagdish S. Gangolly.

Internationalisation of

• Business
• Accounting
• Accounting Profession

BUSINESS:

• Markets for products
• Financial markets
• Overseas Company operations
• transnational ownership
• Profitability of overseas operations
• Overseas investment opportunities
• Managerial talent
• Technological talent

ACCOUNTING

• Local orientation vs. Global need
• Non-comparability of financial statements
• Lack of commonly agreed standards
• conflicting requirements among jurisdictions
• Need for translations
• Lack of standard terminology/lexicon
• Information need for transnational managerial decisions

Accounting Profession

• Barriers to entry
• Internationalisation of clients
• Need for identity (practice)
• Need for commonly agreed auditing standards
• Institutional differences and the need for "harmonisation"

Updated on February 13, 1997 by Jagdish S. Gangolly