International companies can choose how they present financial information to outside parties.the rule and regulation between countries vary significantly. Accountants worldwide are familiar with the word “generally accounting principles”.some of the basic principles are
- The going concern principle
- The prudence principle
- The matching principle
- The consistency principle
The development of these principles has greatly differed between countries. For example, in most English-speaking countries it is often accepted practice to offset unrealized gains from unrealized losses, or to re-value long term assets upwards, provided sufficient proof of the current value can be shown. This means that account can have very different value, depending on whether the company choose to follow local accounting standards, IFRS---IAS .whether the company can choose is governed by the laws of the country where it is registered. For examples the usa and japan currently allow publicly-traded companies to prepare their financial statement using the standards of the IASC, but they must also include reconciliation to domestic GAAP
International companies can choose how they present financial information to outside parties.the rule and regulation between countries vary significantly. Accountants worldwide are familiar with the word “generally accounting principles”.some of the basic principles are
- The going concern principle
- The prudence principle
- The matching principle
- The consistency principle
The development of these principles has greatly differed between countries. For example, in most English-speaking countries it is often accepted practice to offset unrealized gains from unrealized losses, or to re-value long term assets upwards, provided sufficient proof of the current value can be shown. This means that account can have very different value, depending on whether the company choose to follow local accounting standards, IFRS---IAS .whether the company can choose is governed by the laws of the country where it is registered. For examples the usa and japan currently allow publicly-traded companies to prepare their financial statement using the standards of the IASC, but they must also include reconciliation to domestic GAAP
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