The issues of harmonisation of financial accounting versus variability of management accounting, and its implications on shareholders

IntroductionAccounting system is developed into two form, fiscal be and impress be. Both have diametrical focuses and perspectives to facilitate contrasting users? formulation need. This paper explores the issues for these two approaches: harmonisation of financial accounting and variant of management accounting. Finally, we discussed its implications for organisation?s current or first appearance sh areholders. harmonisation of Financial AccountingFinancial accounting provides information to external users much(prenominal) as shareholders, creditors and regulatory agencies etc for making economic decision. Information has to be reliable, intelligible and easily accessible for today?s general users. Harmonisation would allege to narrow national differences in accounting ideal and, facilitates the comprehension and reliable comparison of financial reports from different countries (Rodrigues and Craig, 2007; Saudagaran and Diga, 1998). multinational Companies (MNC) coul d reduce the compliance cost through suspending preparing different hard-boileds of financial reports when listing on foreign capital markets (Rodrigues and Craig, 2007; S. Henderson et al., 2006; Saudagaran and Diga, 1998). The racy tincture is another benefit of International Accounting Standards (IAS). Saudagaran and Diga (1997) engraft that IAS are seems to be more flexible and neutral than approximately domestic help financial accounting standards. Coopers and Lybrand (1995) concluded that IAS did not let let out materials differences on reconciliations of IAS to US GAAP.

In addition, standardisation w ill bar duplicative costs of national and i! nternational standards (Ampofo and Sellani, 2005). R&D costs associated with adopting IAS are minimal, as result cost populate egg for ASEAN in formulating relevant and acceptable financial accounting standards (Saudagaran and Diga, 1997). This overly benefit to developing countries who unable to afford the cost of topical anaesthetic GAAP. However, social and cultural differences will send away different readings and interpretations of IAS, which may lead to different accounting practices deep down a province (Rodrigues and Craig, 2007). The application of different accounting systems to a common set of... If you want to get a good essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper