Accounting

INTRODUCTION

The enterprise community has accepted that the accounting is “the dialect of business”. They are utilising the accounting to broadcast the reality and the evolution of the economic position and furthermore of the presentation for the economical entities.

DISCUSSION

Financial inpatternation is a pattern of a language. As well as if the language of financial information is to be putted to use, so that investment and credit decisions can more readily be taken, it should not only be intelligible, it should also be comparable. Due to the detail that many companies pursue the globalization process, so they go global the accounting required to follow this process and to present financial positions utilising an unique accounting methods which can be realise by the entire business community. Due to the detail that this method is following global tendencies, and the globalization is first of all a political method the starting issue in creation of an exclusive accounting system required to overtake a difficult process where the main accounting schemes will litigate to enforce their accounting policies and performs. (Belkaoui 2004: 15) These new environmental factors of the global economy, the international monetary system, the Multinational Corporation and foreign direct investment create an environment in which business transactions, their conduct, measurement and disclosure, takes new and distinctive form that call for a specific accounting sub discipline or the harmonization of accounting practices.

Harmonization is wholeheartedly essential because nationwide measures of economic statements are effectively useless; economic markets in more regulated countries are endangered with a decrease of market share; and multinational corporations should arrange multiple reports for distinct countries they do business in. (Nobes and Parker 2001: 45) There is a need for harmonization for accounting standards in order to help the foreign investor to understand the financial statements of the foreign companies who's shares they might want to buy.

Nobes Christopher and Parker, Robert (2002: 12) in “Comparative International Accounting” presented between other ideas that advantages of the developing countries to access directly the international accounting system. O'Malley (2003) in “Comparative International Accounting. A Survey” is presenting the relationship between the international accounting system and taxation of managerial decisions for financial managers. Parker R H (2002: 12) in “Comparative international Accounting” presented also the dangers of implementing the international accounting standards without special preparations. Roberts Alan, Weetman H, Gordon, H (2002: 12) in “Comparative International Accounting : Europe including the European Union” published in Abacus indicate the evolution in Europe regarding the subject since the international accounting system has been lunched. Samuels John M., andA. G. Piper. (2000: 35) in “International Accounting: A Survey” presented the benefits for the financial markets if implementation of international accounting standards are succeding. Salin Victoria (2001: 45) in “National Treatment and Tax Harmonization in North America” published in American Journal of Accounting presented the idea that an international accounting system is preventing the intervention of the governments in the accounting policies.

Saudagaran Shahrokh M (2001: 45) in “International Accounting: A User Perspective “ presented the forces ...