Country Differences in Accounting Standards Essay

Country Differences in Accounting Standards - Essay Example The United States of America perform its accounting and the respective financial statements utilizing the generally accepted accounting principles (GAAP). In the United Kingdom a different set of financial standards is being utilized called the financial reporting international standards. The platform utilized in Europe is an international project to standardize the financial reporting standards of corporation across the world. In Europe any company selling its stocks in any registered stock exchange such as the London Stock Exchange (LSE) must release financial standards prepared following the international reporting financial standards. Canada is a nation that is evaluating a transition from Canadian GAAP to IFRS. The new international financial reporting standards are geared towards providing a simple system with flexibility to personalize the system since it is not a rigorous as GAAP. Simplicity allows corporations to achieve savings in their administrative function. There are differences and similarities in the way a company using generally accepted accounting principles or international financial reporting standards are prepared. The GAAP required the financial statements to follow an exact format which the company can not deviate from, while the IFRS has multiple formats. The valuation of investments is performed in GAAP at the cost of the investment and earnings or losses are registered once the investment is sold. In the IFRS the value of the investment goes at fair market value. The investment segment of a GAAP prepared statement is very detailed and illustrates the value of each individual investment. In the international financial reporting standards investment are included at the discretion of the accountants responsible for preparing the financial statements. The consolidated financial statements of GAAP financial statements include subsidiary information only

The economies of two neighbouring states Assignment - 1

The economies of two neighbouring states - Assignment Example Both countries had adopted the ideology of Confucianism, which gives emphasis on knowledge and education, and became their guide to garnering economic benefits. Employing Confucianism, people in both countries are being classified based on their knowledge and skills to determine their prospects of employment. The two countries differ so much when it comes to economic system, price system, employment system and public finance. After WWII, Japan’s economic growth had been rapid, having been successful among the market capitalist economies in the world, whereas, China’s economic system consists mainly of the Chinese Communist Party (CCP), whose influence over all levels of economic and political activities are apparent. Japan imports fuel and energy resources, and in their thrust to excel in the steel industry, on the process, their environment had become extremely polluted. China’s industry also includes steel, but they are equally strong when it comes to agricultu re which is fully controlled by the government, to undertake the feeding of the large population of China. Prices of commodities in Japan are being determined by the demands of consumers as prescribed under the consumer sovereignty law in Japan’s market system. However, in the case of China, consumer demands do not establish the pricing system, but the government of China first takes into consideration the costs of productivity, potential profits and taxes. The labor system of Japan exists on a relatively uniform wages, which had proven to be effective for them because it brought about higher rates of labor productivity. In the meantime, China maintains the â€Å"eight-wage† classification system, in which the workers’ wages are dependent on their skill level, class one being the lowest (Chan, 2002). The market forces are overridden by government action in determining wages. Income distribution caused wider degree of disparities