« Comparative international accounting systems and practices ANGLO-SAXON ACCOUNTING There is no doubt that Anglo-Saxon accounting can be distinguished from ...» Document abstract
$9.95
26 word format
Language : english
accounting
presentation
date published
28/09/2006
review : not yet assessed
level : General public
requested 3 times
SummaryThere is no doubt that Anglo-Saxon accounting can be distinguished from accounting in continental Europe, Asia, Latin American, and many other parts of the world. It is practiced not only in the United States and United Kingdom, but also to an important extent in countries where, for example, the United Kingdom has had a major colonial influence, such as in Australia, Canada, Hong Kong, India, Ireland, Kenya, Malaysia, New Zealand, Nigeria, Singapore, and South Africa. Anglo-Saxon accounting tends to be relatively optimistic and transparent compared to the Germanic and Latin countries, as well as Japan.
In many Ways, Accounting in the United Kingdom is very similar as might be expected given the importance or the historical and investment connections between the two countries. Just as the language and legal system were exported from the United Kingdom to the United States, so were the founding fathers of U.S accounting, including pioneers such as Arthur Young (a Glasgow University graduate of the 1880s). Nevertheless, the United States has adapted rather than adopted the United Kingdom accounting tradition. Indeed, the more recent historical and environmental circumstances of the United States have given rise to some significant distinguishing features.
The securities markets are the dominant influence on accounting regulation in the United States. Dealings in securities and investor protection are regulated and enforced at the federal government level under the Securities Act of 1933 and the Securities Exchange Act of 1934, which were passed in response to the stock market crash of 1929 and subsequent financial crises.
The Securities and Exchange Commission (SEC) was established with the legal authority to enforce the securities laws and also to formulate as well as enforce accounting standards. However, the SEC recognizes as authoritative the “Generally Accepted accounting Principles“ (GAAP) embodied in standards issued by an independent Financial Accounting Standards Board (FASB), witch was established in 1973 following criticism of the standard setting procedures of the American Institute of Certified Public Accountants, thus the standard setting role has been delegated to the FASB with the SEC acting in only a supervisory capacity unless it deems it necessary to intervene, which it has done on only rare occasions (e.g. With respect to oil and gas accounting). Corporations are required to follow EASB standards; otherwise the SEC will refuse registration and hence trading in their securities. It should be noted that only listed corporations (a minority of U.S. corporations) are required to comply with the very detailed regulations imposed by the SEC for investor protection purposes.
The FASB has a very open approach to standard setting known as operating in the “sunshine”. All meetings are open to the public and a variety of opinions sought in an elaborate “due-process” in an effort to ensure that the public interest is properly served. In order to help formulate new standards and improve existing ones; the FASB has developed an explicit conceptual framework of objectives and qualitative characteristics of financial reporting in its series of statements of financial accounting concepts.
The Fast’s pronouncements on accounting practice are issued as “Statements of Financial Accounting Standards” (SFAS). More Than 100 of these had been issued by 1991. Taken overall, the FASB Standards are quite detailed and voluminous compared to U.K standards, for example, this suggest that while the United Stats is similar in many ways to the United Kingdom and Other Anglo-Saxon countries, it is unique in having perhaps the most comprehensive system of accounting regulations in the world, at least so far as securities markets are concerned.
In many Ways, Accounting in the United Kingdom is very similar as might be expected given the importance or the historical and investment connections between the two countries. Just as the language and legal system were exported from the United Kingdom to the United States, so were the founding fathers of U.S accounting, including pioneers such as Arthur Young (a Glasgow University graduate of the 1880s). Nevertheless, the United States has adapted rather than adopted the United Kingdom accounting tradition. Indeed, the more recent historical and environmental circumstances of the United States have given rise to some significant distinguishing features.
The securities markets are the dominant influence on accounting regulation in the United States. Dealings in securities and investor protection are regulated and enforced at the federal government level under the Securities Act of 1933 and the Securities Exchange Act of 1934, which were passed in response to the stock market crash of 1929 and subsequent financial crises.
The Securities and Exchange Commission (SEC) was established with the legal authority to enforce the securities laws and also to formulate as well as enforce accounting standards. However, the SEC recognizes as authoritative the “Generally Accepted accounting Principles“ (GAAP) embodied in standards issued by an independent Financial Accounting Standards Board (FASB), witch was established in 1973 following criticism of the standard setting procedures of the American Institute of Certified Public Accountants, thus the standard setting role has been delegated to the FASB with the SEC acting in only a supervisory capacity unless it deems it necessary to intervene, which it has done on only rare occasions (e.g. With respect to oil and gas accounting). Corporations are required to follow EASB standards; otherwise the SEC will refuse registration and hence trading in their securities. It should be noted that only listed corporations (a minority of U.S. corporations) are required to comply with the very detailed regulations imposed by the SEC for investor protection purposes.
The FASB has a very open approach to standard setting known as operating in the “sunshine”. All meetings are open to the public and a variety of opinions sought in an elaborate “due-process” in an effort to ensure that the public interest is properly served. In order to help formulate new standards and improve existing ones; the FASB has developed an explicit conceptual framework of objectives and qualitative characteristics of financial reporting in its series of statements of financial accounting concepts.
The Fast’s pronouncements on accounting practice are issued as “Statements of Financial Accounting Standards” (SFAS). More Than 100 of these had been issued by 1991. Taken overall, the FASB Standards are quite detailed and voluminous compared to U.K standards, for example, this suggest that while the United Stats is similar in many ways to the United Kingdom and Other Anglo-Saxon countries, it is unique in having perhaps the most comprehensive system of accounting regulations in the world, at least so far as securities markets are concerned.
Table of Contents
- Anglo-saxon accounting
- United states
- United kingdom
- Nordic accounting
- The netherlands
- Sweden
- Germanic accounting
- Germany
- Switzerland
- Latin accounting
- France
- Italy
- Asian accounting
- Japan
« Due to development of international accounting standards IAS application of the unified accounting standards that past performances of a comparative profit is ...» Document abstract
$9.95
40 word format
Language : english
finance
theses
date published
11/07/2006
review : not yet assessed
level : Expert
requested 5 times
SummaryThe paper deals with the issue of mergers and acquisitions on the western market, viewing the topic from the standpoint of their failure and success. The subject is an extremely important one at present, as, on the one side, there is a trend towards major international mergers and acquisitions and, on the other side, many researches indicate that more than half of deals fail.
Having done the research on main factors of failure of Mergers and Acquisitions, it was established that companies fail transactions, because they forget about shareholders’ interests and are often driven by their own interests and motivations. While shareholders are interested in financial flows that can generate a particular transaction, managers often overpay for the target, by mistake and sometimes even intentionally, and thus transfer wealth to target’s company. Secondly, managers pay often in stock rather than in cash, communicating in such a way to shareholders about company’s insufficient liquidity. There have been determined some other less frequent factors of failure, but still affecting acquiring company’s shareholders.
The moral of the paper consists in that shareholders have an uncanny knock to react immediately to changes in corporate structure by pushing up or by pulling down the stock prices. Although there exist numerous motivations for mergers and acquisitions, companies must always set in advance the ultimate goal of value creation for their shareholders
Having done the research on main factors of failure of Mergers and Acquisitions, it was established that companies fail transactions, because they forget about shareholders’ interests and are often driven by their own interests and motivations. While shareholders are interested in financial flows that can generate a particular transaction, managers often overpay for the target, by mistake and sometimes even intentionally, and thus transfer wealth to target’s company. Secondly, managers pay often in stock rather than in cash, communicating in such a way to shareholders about company’s insufficient liquidity. There have been determined some other less frequent factors of failure, but still affecting acquiring company’s shareholders.
The moral of the paper consists in that shareholders have an uncanny knock to react immediately to changes in corporate structure by pushing up or by pulling down the stock prices. Although there exist numerous motivations for mergers and acquisitions, companies must always set in advance the ultimate goal of value creation for their shareholders
Table of Contents
- Mergers and Acquisitions: The Overview
- Definition of M&A
- Classification of M&A
- Modes of payment for M&A
- Motivations behind M&A
- History of M&A
- Creation and Destruction of Value through Mergers and Acquisitions
- Definition of value creation
- Detailed analysis of M&A performance
- Distribution of value creation in M&A
- Factors of failure
- Valuation of Mergers and Acquisitions
- The price margins
- Valuation methods
- Valuation of Remedy Corporation
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