Accounting Reporting Criteria Essay

1643 WordsJan 6, 20097 Pages
Introduction With the ever-increasing number of organizations in the marketing trade, it is essential to have regulations in place to discourage corruption and fraud. Different countries have varying regulatory agencies to monitor business accounting and data keeping. The United States has adopted the Generally Accepted Accounting Principles (GAAP), which are an accepted uniform of standards and practices used in financial accounting and reporting. The GAAP is, in essence, a checks and balance system that sets and maintains a certain degree of standards. Other countries have different governing standards and practices. Although other practices have different standards and measures, the principles are basically the same as GAAP and monitor accounting practices in those countries. Two different organizations such as Starbucks and Sony are originated and run in different countries, practice different standards and policy but still have similar principles and guidelines to abide by. To be successful internationally, varying policies need to be measurable in different markets. Issues with foreign currency Several differences in the accounting reporting criteria between a company being run in the United States and one being run in a different country. Each country has guidelines and rules when it comes to the criteria for accounting. For example, looking at two companies; Starbuck’s and Sony, the accounts are prepared under different regimes. Starbuck’s is a US coffee distributor company and the accounts are prepared according to the Generally Accepted Accounting Principles (GAAP). By comparison, Sony is a Japanese distributor of electronics based in Tokyo and its accounts are prepared according to the accounting practices of the ASBJ (Accounting Standards Board of Japan). The International Accounting Standards Committee (IASC) that was introduced in 1973 was the

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