Essay Title: 

International Accounting

March 24, 2016 | Author: | Posted in accounting, mathematics and economics

International Accounting Introduction

This seeks to answer given questions about international accounting standards and its adoption by Korea due to the latter ‘s previous problems related with the accounting profession . It discusses therefore the adoption of the international financial reporting standards IFRS and role of government and businessmen its eventual adoption and application . It also discusses the role of investors demand for financial disclosure vis-a-vis the effectivity of regulations

Questions and Answers

Question (1 ) This article states that accountants standards in South Korea `Fall far short of international standards [banner_entry_middle]

‘ Would the adoption of IFRS improve financial reporting quality of Korea

Yes the adoption of the IFRS (Casabona , and Shoaf , 2002 ) would improve the financial reporting quality of Korea because the IFRS was international in character and addressed the some of the latest development in technology . Case facts from the same article admit , For a start , the accounting rules that the government introduced in the wake of the financial crisis still fall far short of international standards For instance , South Korean companies can count as assets payments that are not due for a year or more ‘ The statement is an admission that the Korea needs to adopt international standards which carries a presumption of universality by its being international

It must be noted however these accounting standards need the support of those to be governed and the government ‘s determination to implement the same . Any kind of problem in the world could be solved first , by an acknowledgement that a problem exists and that a solution is desired and decided upon to solve the problem . It is just like an issue of poverty and corruption . If the people are poor and they accept it as such and they value poverty , then no amount of innovation in rules could change them because it is what they want . So it is with corruption , if everyone does it and many cannot see the wisdom of seriously addressing it , it will always be there . Hence in the case of accounting standards , the need for change must be acknowledged and a determination to really solve the problem by implementing better standards must be actually done by the government of Korea . The best proof is to really put to prison criminally erring accountants and making responsible people suffer the consequences of their actions

Question (2 . Is it fair to say that this article suggests that formal accounting standards mean relatively little if there is not a general consensus in a country ‘s business culture that these standards be followed and enforced ? What changes would need to occur in South Korea for real progress in financial reporting and corporate governance to occur ? What are the implications for the prospects for successful accounting harmonization

Yes it is fair to say to suggest that formal accounting standards mean relatively little if there is not a general consensus in a country ‘s business culture that these standards be followed and enforced . Accounting Standards are rules hence they are just like… [banner_entry_footer]

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