Question

there are a host of accounting issues that impact the financial statements of international corporations. Please discuss one topic, such as international accounting standards, and explain how they affect the preparation of consolidated financial statements for international companies. Please comment in 200 words or more, using proper citation if applicable.

Answer 1

As the results of the activities of investors and companies are increasing, the Commission is expanding its participation in several such forums, developing a framework that is globally recognized and high quality financial accounting reporting. Our efforts, both domestically and internationally, are continually based on the goal that the way to achieve efficient capital markets across the globe is to give investors complete information that is comparable and transparent. Therefore, we have taken the dual objective of maintaining the quality of financial reporting locally while favoring the convergence of high quality holder level global financial reporting internationally. As part of this, the status of the financial accounting statements of foreign private issuers, prepared by the criteria announced by the International Accounting Standards Committee, should be accepted.

The International Accounting Standards, such as how certain types of transactions and other events should be reported in a financial report. Issued by the IFRS International Accounting Standards Board (IASB) and they decide how to monitor and report their accounts. In the international accounting standards of IFRS is established to be a simple accounting language, so that management and accounts can be understood internationally by country. This results in the preparation of financial statements.

Reporting status includes the income and expenses of the company in the financial statements together with the subsidiary's controlling date from the date of termination of control. These subsidiaries are based on the proportion of capital and heirs recognized in the consolidated financial statements on the date of profit and expense.

A company that submits its own consolidated financial statements must combine all foreign as well as domestic companies. Where a company does not have a subsidiary, it is also necessary for the co-operative and joint venture company to prepare and submit financial statements in accordance with accounting standards.