...Contents Contents Page………………………………………………………………………………………………………………………………………….1 Main Body……………………………………………………………………………………………………………………………………………….2 1. Harmonisation – what it means……………………………………………………………………………………………….…2 2. IASB’s reasoning for financial reporting harmonisation…………………………….………………………………..3 3. Approaches to harmonisation………………………………………………………………………..…………………………..4 4. Obstacles in harmonisation………………………………………………….……………………………………………………..6 5. The convergence between IASB and FASB today and the Changes within the IASB towards achieving their goal ……………………………………………………………………………………………………………………7 Conclusion ………………………………………………………………………………………………………………………………………………8 References & bibliography………………………………………………………………….…………………………………………………..9 1. Harmonisation – what it means Harmonisation is the process which aims to converge the accounting practices around the world and to increase the compatibility between countries in regards to financial statements. However, we must keep in mind that this process does not target uniformity in the accounting practice, but to reduce the differences over time. Standardising the accounting practices around the world comes as a boomerang effect of capitalisation. We have companies that trade in different countries and thus they must oblige with each of the accounting practices of every country where the company produces financial statements. This leads to the situation where you have a company reporting a shareholders’...
Words: 3025 - Pages: 13
...Definition There is significance between accounting harmonisation and accounting standardisation where harmonisation allows countries to have different accounting standards provided that they do not have logical conflict with the International Accounting Standards Board (IASB). Therefore the accounting standards in different countries are not identical but very similar from one to another which allows convergence of accounting practices. However, standardisation of accounting has the direct opposite meaning of harmonisation where the standardisation requires all accounting practices in various countries to be exactly the same. Harmonisation tends to be associated with IASB which carries out the process of coordination whereas standardisation is the process of uniformity that can be seen in the European Union (EU) where transnational legislation occurs. According to various accounting scholars, they said it is important to distinguish between harmonisation of accounting practices (de facto) and harmonisation of accounting regulations (de jure). De facto is often associates with harmonisation while de jure is associated with standardisation. Reasons for Harmonisation RELIABILITY OF FINANCIAL STATEMENTS FOR THE USERS One of the reasons that international harmonisation of accounting standards should be carried out is to ensure comparability, reliability and quality of financial reports and disclosure of foreign enterprises. This allows investors and financial analysts to understand...
Words: 1777 - Pages: 8
...Question 1: Considering both economic and ethical aspects, is it appropriate for companies like Novo Nordisk to conduct clinical trials in, for example, India, and if so under what conditions? What exactly are the principles that should guide such a decision? 1. Ethical aspect. Nordisk’s implementation of clinical trials in India is appropriate. The appropriateness is expressed through the following guidelines: • Novo Nordisk’s trials seriously comply with medical ethics (Hippocrates’s oath) through its particular attention to individual patients joining any of its trials. • Novo Nordisk has applied all the guidelines and global recommendations from specialized agencies and has adopted its policies on clinical trials. Accordingly: o Clinical trials sponsored by the company always comply with Helsinki Declaration, listing the rights of patients enrolled in clinical trials, and the global ethical principles like Nuremberd rules, and Belmont report, CIOMMS and the principles of the International Conference of Harmonization on Current Clinical Practice (CGCP) o Countries where Novo Nordisk conducts trials will be ensured to have a proper internal organization and proper legal environment. o No testing activities are conducted before permitted by the ethics review board and the health authorities. o The safety information of Novo Nordisk’s trials will be continuously monitored and appropriate actions will be taken if risks of the tried medicine outweigh the benefits it brings...
Words: 1295 - Pages: 6
...Public interest theory seeks to establish a method of understanding the interests of public groups based on a number of assumptions. Typically actions that are deemed in the public interest generally occur when governments seek to intervene in situations where market failure occurs. Market failure may arise due to monopolies, barriers to entry for new businesses, and information gaps. Public interest theory makes three assumptions. First, interest of consumers is translated into legislative action through operation of the internal marketplace. Secondly, agents will seek regulation on behalf of public interest. The third assumption being that government has no independent role to play in the development of regulation. In 2002 the Sarbanes-Oxley Act was created in America to enforce greater regulation and compliance for financial reporting and corporate governance. This Act was created in response to corporate scandals involving larger companies like Enron and Tyco International, and thus public interest theory suggests the government’s response was as a result of market failure due to inaccurate auditing and accounting procedures. The premise of private interest theory is that governmental bodies and political leaders use their power to coerce businesses through taxation, regulation, and subsidies. The Basic assertion of privation interest theory is the law of diminishing returns which exists between group size, and costs of using political process. A second assumption is government...
Words: 1740 - Pages: 7
...Chen, S., Sun, Z. and Wang, Y., 2002. Evidence from China on whether harmonised accounting standards harmonise accounting practices. Accounting Horizons, 16(3), pp.183-197. Colasse, Bernard, and Noal Mellott. "The international standardization of accounting: the resistible rise of the IASC/IASB." In Annales des Mines-Gérer et comprendre, no. 2, pp. 15-24. ESKA, 2010. European Commission. 1995. Communication from the Commission, Accounting Harmonisation: A New Strategy Vis-à-vis International Harmonisation. Com, 95, p.508. Guggiola, G., 2010. IFRS adoption in the EU, accounting harmonisation and markets efficiency: A review1. The International Business & Economics Research Journal, 9(12), p.99. Hoogervorst, H. 2015. Ten years on, what have we learned? IASB Speech. Pacter, P. (2014) Global Standards: How Close Are We? Retrieved from http://www.ifrs.org/ Roberts, C.B., Weetman, P. and Gordon, P., 2005. International financial reporting: a comparative approach. Pearson Education. Schaub, A., 2005. Use of International Accounting Standards in the European Union, The. Nw. J. Int'l L. & Bus., 25, p.609. Tran, L. 2012. The Role of the FASB and the IASB in Establishing Fair Value Measurements. Fair Value Valuation Insights. Winter 2012. Whittington, G., 2008. Fair value and the IASB/FASB conceptual framework project: an alternative view. Abacus, 44(2), pp.139-168. Wong, P., 2004. Challenges and successes in implementing international standards: achieving convergence...
Words: 261 - Pages: 2
...facing a rapidly changing environment, which offers both opportunities (such as harmonisation of regulatory requirements) but also threats (more discriminating purchasers) • the need for global presence to achieve adequate return on escalating marketing capabilities and R & D costs: • a strong focus on healthcare cost containment, such that new treatments must be justified on cost-benefit grounds, adding to development costs; • to command price premiums, new products must offer unique benefits, yet information leakage means that most products are imitated rapidly; • IT developments provide greater access to detailed healthcare information for both providers and patients, also pushing forward cost-effective treatments: • Educated consumers demanding advances in therapy; • There are opportunities to change organisational models but no-one has yet found a feasible alternative; • Continued industry consolidation. Step2 Identify and list forces likely to have an high impact on the industries future development. a) Increasing concentration of buyers b) Increasing power of distributors (parallel trade) c) Generic substitutes d) Scientific advances leading to new drug discovery processes and greater targeting of treatments e) Government pressure on costs and intervention f) Harmonisation of healthcare practice g) Globalisation, greater harmonisation and entry into Japanese markets by European and North American firms h)...
Words: 1044 - Pages: 5
...CENTRE FOR EUROPEAN POLICY STUDIES REGULATING E-COMMERCE IN FINANCIAL SERVICES REPORT OF A JOINT CEPS/ECRI WORKING PARTY C H A I R M A N: TI M J O N E S C H I E F E X E C U T I V E, P U R S E U S R A P P O R T E U R: NURIA DI E Z GU A R D I A FORMER R ESEARCH FE L L O W , CEPS OCTOBER 2001 This report contains the conclusions and policy recommendations that follow from the discussion and analytical presentations that took place at the meetings of the joint CEPS/ECRI Working Party. The members of the Working Party participated in extensive debate and submitted comments on earlier drafts of the report. Its contents contain the general tone and direction of the discussion, but its recommendations do not necessarily reflect a full common position reached among all members of the Working Party, nor do they necessarily represent the views of the institutions to which the members belong. A list of participants and invited guests and speakers appears at the end of the report. This Working Party was chaired by Tim Jones, Chief Executive at Purseus and former Chief Executive of Retail Banking at NatWest, London. Nuria Diez Guardia served as Rapporteur for the Working Party while a Research Fellow at CEPS. Amparo San José and Alfredo Sousa greatly contributed to the drafting of Parts I and II of the final report, respectively. ISBN 92-9079-349-X © Copyright 2001, Centre for European Policy Studies. All rights reserved. No part of this publication...
Words: 15349 - Pages: 62
... VSO has advocated with government officials that Nigeria confronts the threat of climate change and mitigates its impact through research and forward planning. NCAN highlighted the need for a government body that would have legislative influence and be provided with budget allocation to champion climate change issues and promote cross‐department work. The advocacy work by NCAN and the International Centre for Energy, Environment and Development resulted in a bill being introduced to both houses of the Nigerian National Assembly. This, however, resulted in the passing of the bill in two different formats; one house creating an agency from the bill and the other creating a commission. These results, although a fantastic achievement, were unworkable without harmonisation, and thus a new phase of advocacy work began. VSO provided parliamentarian volunteer (PolVol) Jo Swinson MP. During her placement in Abuja she was able to help the...
Words: 515 - Pages: 3
...investors to make more efficient, educated and intelligent investment decisions, particularly when it comes to deciding between the alternative investments on offer, and helps them to take advantage of the risk reduction that is possible through international diversification. Secondly, the harmonisation of international accounting standards reduces barriers to capital inflows by helping companies raise capital in domestic as well as international markets. This is useful particularly for those companies that find it difficult to obtain the funding necessary for their long-term growth and expansion projects in their local economy due to a scarcity of resources. To overcome this problem, companies can have their securities listed on foreign stock exchanges and in doing so, be able to significantly expand their base of capital funding. Harmonisation makes this possible because investors as a result are better able to understand the status of companies, thereby also increasing their confidence in investments. Thirdly, internationalisation of accounting standards has become particularly important amidst the increasing globalisation of business and capital markets as of recent. As a result of harmonisation, multinational companies having operations and investments in different countries will not need to prepare a separate...
Words: 2353 - Pages: 10
...-ECJ 3. Labour law and social policy - thinner - social policy - 3 theories: neo-liberal, social democratic, Marxism - paradoxen 4. Historical development a) market rights as motivators of social rights ‘spill over’ - 60’s (neo liberal period) -70’s (crisis, Paris, social action, golden period of harm.) b) socially acceptable economic integration -80’s (clash, deregulation, delors, GR/SP/PO) -90’s( Maastricht, UK, AU/FI/SW, 1997 UK, employment title) c) economically acceptable social integration -green paper on social policy (Flynn) -white paper 1994 -white paper Delors -green paper 2006 interactions between union and member states *Regulation *De-regulation(beer Shirac) *Coordination *Financial support *Harmonisation(?) *Eu Social Law (TFE, TEU, Charter fund rights) *directives *Soft law Title X Social policy TFEU -art. 151/152 -art. 153(working, social security and protections, repres and col defense) qualified majority voting/ unanimity -excluded *Collective labour law vs individual labour law(s anc cb: collective) -social dialogue -collective bargaining -Jacques Delors – Val Duchesse process - European trade union confederation - Maastricht Treaty (2 art. Annex) -Business Europe/ CEEP /UEAPME / ETUC - better enforced - 3 conditions: legal infras. /institutional i./practice of industrial relations - biggest proble: inst and legal structure legal inf? * Art. 154: compulsory consultation and power to intervene(agr.soc...
Words: 520 - Pages: 3
...Assignment 1 –FAC501 | Challenges facing the accounting profession and how I see them affecting me in the future with regards to IFRS companies submitting IFRS on US stock exchanges? Macdonald Felix Rusoto Muchemedzi Student Kaplan University As the Stock exchange affords different investors the opportunity to actively trade in the non-US companies and also provide an avenue for non-US companies to raise capital will the investment and accounting community be able to fully understand the information and make rational and informed decisions. In this discussion paper I will discuss the key requirement that participants should be financial bilingual to fully understand both sets of financial reports (IFRS and USGAAP) in order to be able to compare them, thus comparability is the main challenge facing the accounting profession and harmonization/convergence is a current and future requirement to ensure comparability, other factors will come into play as will be discussed later. My future has already started to be affected as I work in a US subsidiary in South Africa and we are required to provide USGAAP reconciliation from our IFRS financial reports and with greater convergence I strongly believe my work will be less as there will be no longer a need to be financially bilingual as there will be one set of financial reports. Literature review Both IFRS and USGAAP financial reporting standards are developed from the conceptual framework, hereafter IFRS conceptual framework...
Words: 1981 - Pages: 8
...|Responsible |(ministry) |minister | | | | | |(name, surnames) | |Date |Leave blank | |Author |(ministry) |Ministry | |Prepared by the European Union |Leave blank | |coordinator | | | | |(position, name, surname) | |E-mail address |Leave blank | | |Phone number |Leave blank | | Position Nr.__________ REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ______________________________________ (title of the EU legislation proposal (in English)) | Reference to the EU document |COM(2010) 524 final ...
Words: 1085 - Pages: 5
...MANAGEMENT DEVELOPMENT INSTITUTE, GURGAON Effective Business Communication through Theatre Technique Core Faculty: Ashok Kapoor Course Outline Introduction Theatre is not merely a metaphor for workplace: it already exists in daily life, and workplace is just its extension. Individually and collectively, within and without, people are in a dynamic and dramatic relationship that is now planned or rehearsed and now improvised. The Corporate is engaged in an ongoing drama that is being played on the larger stage of society. In their book, ‘Dramatic Success’, (Nicholas Brealey Publishing, 2004), authors Andrew Leigh and Michael Maynard reiterate that Corporate is Theatre. They have looked at ‘Self’, ‘Team’ and ‘Organisation’ as the three acts of a play. The dramatic scenario in Self consists of ‘Connection’, ‘Talent’ and ‘Power’; in Team of ‘Alignment’, ‘Creativity’ and ‘Exploration’; and in Organisation as ‘Insight’, ‘Inspiration’ and ‘Initiative’. The key to being an effective player in corporate processes is to learn to observe, sense and listen to the unfolding drama at workplace. Theatre techniques prepare you to see yourself objectively in a dynamic situation, and thereby help you to realise responsibility and strategise communication. They aim to help the student transform and become an inspired performer, an effective team player and a leader. The theoretical model of the Communication Process – comprising ‘coding’, ‘decoding’, ‘feedback’, etc.- is...
Words: 988 - Pages: 4
...Instructor’s Manual CASE TEACHING NOTES The Global Pharmaceutical Industry Sarah Holland (Manchester Business School) and Bernardo Bátiz-Lazo (London South Bank University) 1. Introduction The case describes how the prescription pharmaceutical industry has changed since its modern beginnings in the early 1950s. The various forces affecting the competitive environment of the industry are discussed in terms of origins, immediate past and immediate future (2004 onwards). As a result, the note provides insights into the evolution of barriers to enter and exit the industry for prescription pharmaceuticals, while aiming to help students to recognise how to set boundaries for an industry. This is a detailed industry note on the “ethical” pharmaceutical industry which provides an opportunity to analyse key success factors of major players. The note centres on a descriptive overview of the predominant issues in the three major Triad market areas: the US, Europe and Japan (although major issues in emerging markets are also mentioned). The note covers the overall industry environment with in-depth discussion of the driving forces in the industry such as globalisation (in particular global regulatory issues, changing world demographics and worldwide pricing disparities); development of new technology; the importance of time to market; and amalgamations. The case also examines issues around corporate social responsibility. 2. Position of the Case The pharmaceutical industry...
Words: 8602 - Pages: 35
...ASX AND MEDIA RELEASE Page 1 of 13 For Immediate Distribution 21 March 2012 DAVID JONES ANNOUNCES ITS FUTURE STRATEGIC DIRECTION DAVID JONES HAS MANY EXISTING STRENGTHS: It has a distinctive positioning in the Australian market, a loyal customer base, a strong service ethic, a profitable and well positioned store portfolio, a strong Balance Sheet, robust cashflows and a high dividend payout ratio - all of which position the Company well to leverage the many opportunities that exist for future growth outlined below. DESPITE ITS STRENGTHS THE COMPANY FACES CHALLENGES • • • Structural Changes – the internet is globalising & changing retailing; Macro Economic Headwinds –retail sales have been flat and rents, labour, utilities & financing costs are increasing; Challenging Australian Consumer Credit Markets - the Company’s card portfolio is exposed to prevailing weak discretionary retail spending. This could result in a halving of EBIT contribution from this business in FY14 when the alliance with American Express converts to a share of underlying profits. DAVID JONES WILL ADDRESS THESE CHALLENGES & GROW VIA A “3 POINT STRATEGY” 1. Transformation: The Company is in the process of transforming: • into an Omni Channel Retailer (OCR) modelled on international department store best practice. The Company is investing in technology and realigning its processes & structures. The Company will increase its online SKUs from 9,000 to 90,000 before Christmas...
Words: 7281 - Pages: 30
