ARTICLE ANALYSIS

Article Analysis

Article Analysis

The article “Accounting in the Global Business Environment” by Bernard, Mary Ellen, Oliverio, Newman was published in CPA journal. The authors discuss differing accounting organizations in the global business environment. The international accounting standards are driven by the optimistic global business leaders who are the Chief Executives of large corporations of different countries in the world. More and more companies are going global and sharing their knowledge and expertise around the world. This increases the importance of a single international association for synchronizing the financial transactions and accounting reporting standards.

The title creates an image of the article in mind of the potential reader (Mauk & Metz, 2007). There are different organizations related to international accounting. The main associations are briefly discussed. The International Federation of Accountants (IFAC) fulfills the purpose of creating a stronger and integrated profession of accountancy. The organization put efforts to gain increased acceptance and recognition of the standards for regulating the financial and capital market. The International Accounting Standards Committee (LASC) works to develop accounting principles that are used by business throughout the world for financial reporting. The International Organization of Securities Commissions (IOSCO) identifies the differences in financial accounting standards and reported in different countries of the world. There are also different regional groups that represent the accounting and reporting standards for their regions like Africa or Europe.

A claim is the main idea or position of the writer that is being portrayed to the reader (Wardle & Downs, 2011). The U.S' decision makers have been reluctant in completely accepting the international standards. The U.S' disclosure requirements are considered to be the most careful and accurate in the world. The U.S' system is fairly monitored regulation. There are many issues pertaining in the international accounting associations, in the world. Some of those issues are briefly discussed in this article. In the United States, the accounting standards say that historical cost should be considered for recording transactions. On the other hand, the experts are debating for considering fair market value to record especially for financial instruments. The international standard is to match the revenues received in the fiscal year to the expenses accrued to generate the earned revenues during the same period. This is the economic reality which means the actual happenings in the period. However, in Germany, there is a different definition of economic reality. Performance of one year is not a true representation ...