The international economic scenario Research Paper

The international economic scenario - Research Paper usageThe news say requirement for businesses has also changed due to this change. Demands of stakeholders bind changed when it comes to information. This is because stakeholders are also becoming global. Single investors holds portfolio of investments in many dissimilar regions of the world. Similarly companies invest in many different nations, thus the demand for accounting regulations has totally changed since the last few years. International Economy Online stock exchanges provide excess to capital to organizations from different areas of the world. A very good example would be NASDAQ allowing American firms to raise capital from as faraway away as Brunei. Another major reason of change in the global restrictive scenario has been the novel economic meltdown. The global economic meltdown is perceived as not only a also-ran of organizations ability to regulate them but also a failure of regulations and regulatory bodies. Therefore organizations are oblige to look for markets beyond their home countries (Europe and USA) to alternate investment and capital sources. Thus in many ship canal the fiscal crisis is also forcing organizations to go to a greater extent global. With going global comes the challenge of tackling many different financial systems and regulatory bodies. ... FASB is an American body credited with the formulation of GAAP i.e. Generally Accepted Accounting Principles. Differences The FASB is operate in a highly litigious environment and thus the GAAP are formulated to adapt this environment. This is the very reason that GAAP is a more comprehensive and detailed accounting standard. This would seem a positive aspect of any accounting standard but in reality it becomes a sof bothod difficult to implement or understand GAAP. Moreover for organizations working outside the United States it becomes even more difficult to understand the GAAP as it is closely linked with American Legal sy stem. Similarly IASB is amenable for the formulation of IFRS (International Financial Reporting Standards). As the name suggests, as compared to GAAP, IFRS are simply standards rather than principles. Although on the face of it minor in nature, this difference totally redefines the IASB standards. This is because IFRS are more taken as more a set of broader guidelines rather than hard-core principles. For many years there has been a competition for dominance amongst the two reporting bodies. This race has already been won by IFRS. The structure of IFRS allows more internationally different regulatory bodies to adopt and adapt them. Thus allow them to address their own specific need and still roost understandable to users and evaluators. Therefore globally IFRS has become the global reporting standards. Emerging markets, underdeveloped economies and developed economies have all shifted to IFRS. The Unites States is also gradually shifting from GAAP to IFRS. The gradual process sta rted with US companies being allowed to report in IFRS as per their discretion. Moreover the AICPA has announced that a gradual process would be