The SEC reporting requirements will also have to be adjusted to reflect changes of the converged system. Another reason why U. There are various reasons for such resistance to change, and some are pertinent to the accounting profession, some to corporate management and some are shared by both.
This difference in political power led to little spending on the establishment of institutions such as public schools and slowed down their progress. The International Accounting Standards Board IASB seeks a workable solution to alleviate the existing complexity, conflict and confusion created by inconsistency and the lack of streamlined accounting standards in financial reporting.
IFRS does not segregate extraordinary items in the income statement, but U. This process of catch-up continues as long as the following nations have something to learn from the leading nations, and will only cease when the knowledge discrepancy between the leading and following nations becomes very small and eventually exhausted.
Further, the new standards will increase the international flow of capital. Financial Reporting Financial reporting standards and requirements vary by country, which creates inconsistencies.
Most importantly, several countries with low national income also have low growth rates. Digital media convergence has changed the game plan for journalists and reporters, advertisers and broadcasters. Additionally, the convergence of accounting standards is changing the attitudes of CPAs and CFOs toward the harmonization of international accounting, affecting the quality of the international accounting standards and the efforts made toward the goal of convergence of GAAP and IFRS standards.
You can follow any responses to this entry through the RSS 2. As previously mentioned, the major difference between GAAP and IFRS comes down to one being rules- based and the other being principles-based; this has posed a challenge in areas such as consolidationthe income statement, inventory, the earnings-per-share EPS calculation and development costs.
Such initiatives have consequences on the world of accounting diversity, and the standards convergence of GAAP along with the IFRS largely impacts corporate management, investors, stock markets, accounting professionals and accounting standards setters.
GAAP shows them as net income. Some economists criticise the theory, stating that endogenous factors, such as government policy, are much more influential in economic growth than exogenous factors.
Thus, foreign aid should focus on structure infrastructure, education, financial system etc. Delivered twice a week, straight to your inbox. The exogenous suitability of land for wheat versus sugar determines the growth rate for many countries.
The main issues with convergence lie with the difference in the approach of the U. Limitations[ edit ] The fact that a country is poor does not guarantee that catch-up growth will be achieved. You can leave a responseor trackback from your own site.
Timeliness and the availability of uniform information to all concerned stakeholders will also conceptually make for a smoother and more efficient process. Culture in this context is defined by the FASB as " the collective programming of the mind which distinguishes the members of one human group from another.
Thus, this is in contrast to the theory of conditional convergence, and would suggest that foreign aid should also include income transfers and that initial income does in fact matter for economic growth.
Land that is suitable for sugar and coffee such as Cuba experienced economies of scale from the establishment of plantation that in turn created the small elite families with vested interest in guarded franchise.The University of Southern Mississippi The Aquila Digital Community Honors Theses Honors College GAAP and IFRS Convergence: The Effect On Lease Accounting.
The idea of convergence in economics (also sometimes known as the catch-up effect) is the hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies.
As a result, all economies should eventually converge in terms of per capita income. Kurt Herdman of Schneider Downs explains how IFRS has and will continue to have an effect on nonprofit organizations. The standard sett Nonprofits and International Financial Reporting Standards.
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Tags. (IASB) broadly defined their initial goal of international convergence to be to establish "a. The technology convergence integrating multiple devices into a single one is now a distinct trend in electronic industry. This trend can lead to a decrease in the use of rare and toxic heavy metals due to resource sharing, or an increase due to the application of new and auxiliary technology.
This study investigates the effect of technology. Culture and international business: recent advances and their implications for future research Kwok Leung1, Rabi S Bhagat2, Nancy R Buchan3, Miriam Erez4 and We first review the issues surrounding cultural convergence and divergence, and the processes underlying cultural changes.
We then examine novel constructs for characterizing. This paper examines the direction of causality between international trade and cross-country income differences in several ways.
First, instruments for income are used in pooled gravity regressions to determine the effect of income differences on bilateral trade, and instruments for trade are used in regressions to determine the causes of income .Download