国际商务 查尔斯W.L.希尔 第七版 原版官方PPTchap019.pptVIP

International Business 7e by Charles W.L. Hill Chapter 19 Accounting in the International Business Introduction Accounting is the language of business – it is the way firms communicate their financial positions Accounting standards differ from country to country These differences make it difficult for investors, creditors, and governments to evaluate firms The International Accounting Standards Board (IASB) has made some attempts to establish common accounting and auditing standards across countries Introduction Figure 19.1 Country Differences In Accounting Standards A country’s accounting system evolves in response to local demands for accounting information While there have been efforts to harmonize accounting practices across countries, significant differences remain One study found that among 22 countries, there were 76 ways to assess the cost of goods sold, 65 differences in the calculation of return on assets, and 20 ways to calculate net profits The differences make it challenges to compare financial performance of firms from different countries Country Differences In Accounting Standards Five main variables influence the development of a country’s accounting system: 1. the relationship between business and the providers of capital 2. political and economic ties with other countries 3. the level of inflation 4. the level of a country’s economic development 5. the prevailing culture in a country Country Differences In Accounting Standards Figure 19.2 Relationship Between Business And Providers Of Capital The three main external sources of capital for firms are: Individual investors Banks Government A country’s accounting system reflects the relative importance of each constituency as a provider of capital So, accounting systems in the U.S. and Great Britain are oriented toward individual investors; Switzerland, Germany, and Japan focus on providing information to banks; and France and Sweden prepare financial documents with the government i