Accounting Standards

Essay Instructions:

International versus U.S. Accounting Standards For this assignment, you will research and compare international and U.S. accounting standards. This will enable you to see how the different reporting methods affect business and how product costs are affected by international business. The learning objectives of this report are as follows: 1. Compare and contrast basic U.S. and international financial accounting standards. 2. Explain how key international factors affect business reporting. 3. Identify key compliance and regulatory requirements. Introduction Part 1: Select financial statements for two related (e.g., computer manufacturers, pharmaceutical companies, cell phone companies, etc.) businesses; one that uses U.S. accounting reporting and the other that uses international accounting reporting. Identify the following items: o Provide the name, location, and accounting standards used for each business. o Compare and contrast three major differences you see in the way the financial data is presented on the financial statements. o Identify which set of financial statements you think is the easiest to understand and provides you with most accurate cost data as a manager. (Do not forget to look at the notes to the financial statements also.) Part 2: Analyze and discuss three international factors you think would affect the cost of the products made at the companies you selected and why. Part 3: Discuss any compliance and/or regulatory issues you think would be involved in the companies you have selected as they relate to the cost of the products made. For example, are there strict regulations on product pricing, tariffs imposed on raw materials needed to make the products or strict regulations on the wages paid to workers? Conclusion and Recommendations Be sure to use APA formatting throughout. Include at least two of your scholarly resources.

Essay Sample Content Preview:

International versus U.S. Accounting Standards Student Name Institution ACC 5301 Management Applications of Accounting Instructor Date Abstract Accounting standards worldwide are different but international and United States-audited financial reporting rules stand out. This paper examines several standards concerning their influence on financial statements and the management decision-making process. As such, it takes examples of Apple Inc.'s and Samsung Electronics Co.'s financial statements that use these different accounting standards to demonstrate significant details that differ. The examination used qualitative data from their annual reports, which were then analyzed as a part of the research process. This presents the styles and interpretations of global and American costing principles that affect control decisions. When contrasted across all aspects, these divergent report practices about multinational businesses in a globally integrated context necessitate an understanding by critical actors engaged in regulatory settings today. Keywords: Accounting standards, trade, financial reporting, Apple, Samsung. International versus U.S. Accounting Standards Accounting principles play a significant role in financial reporting by enabling stakeholders to evaluate the organization's financial performance and make sound decisions. In the modern business world, the convergence and divergence of these standards, either internationally or in the United States, have tremendous effects on transnational companies. Investors and executives need to grasp such rules to tackle obstacles related to overseas business environments. Factors like culture, law, and economy contribute to the different accounting standards in other countries. While most countries have adopted International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), Generally Accepted Accounting Principles (GAAP) are followed in the US. Also, domestic legal systems shape accounting frameworks, resulting in diverse disclosure obligations, norms, and practices across different jurisdictions. Local requirements goals shape various jurisdictions' framework principles demands, leading to dissimilar principles, practices and disclosure obligations in this respect. This paper will evaluate financial statements for Apple Inc., which follows GAAP accounting standards and Samsung Electronics Co., which applies IFRS and their regulatory elements that demonstrate the globalization of business processes. It highlights that organizations must reflect changing regulations with their financial reports while embracing corporate strategies promoting sustainable development within an interconnected society of worldwide firms. Part 1 Financial Statement Comparison Cupertino-based Apple follows U.S. GAAP for financial reporting. Apple filed its fiscal year 2023 Form 10-K, including the balance sheet, income statement, statement of cash flows, and statement of shareholders' equity (United States Securities and Exchange Commission, 2023). Samsung Electronics Co., a South Korean company headquartered in Suwon, reports its financials using IFRS. The company's fiscal year 2023 annual report includes its financial statements, giving a complete picture of its performance, position, and cash flows (KPMG Samjong Accounting Corp., 2023). Financial Statement Comparison 1 Presentation: Apple's U.S. GAAP-prepared financial statements adhere to extensive disclosures and footnotes. In its financial statement, Apple breaks down revenue streams such as product sales, services, and other revenue to help stakeholders understand revenue composition (US SEC, 2023). In contrast, Samsung's IFRS-based financial statements use principles to convey information more concisely. IFRS emphasizes substance over form; therefore, the income statement aggregates revenue streams without breakdowns (KPMG Samjong Accounting Corp., 2023). ...

Updated on May 15, 2024

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