...1.0 Introduction This report talks about china s accounting systems and how it has developed and changed continuously till present. It looks into the history of Chinese accounting, followed by explaining how the institutional factors have had an impact and is backed up by 2 theorist, Hofestede and Grays model. It identifies the significant changes that occurred during its journey in adapting to the IFRS standards starting from 1949. Culture is a main aspect of china and has been incorporated into its accounting systems as well. To conclude it explains future problems that may arise and whether or not china will fully adapt to the IFRS system. 2.0 Brief history of accounting Previously there was no real accounting system in china with the exception of providing financial reports, therefore the Chinese government wanted to implement an accounting system. In 1949 the people Republic of China (PRC) a communist party came into power and adopted a communist accounting approach from Russia to achieve socio economic development without the reliance on developed nations. 2.1 Significant changes that have taken place 2.2 Great Leap Forward The regime of the Great Leap Forward 1958 – 59 was an effort to strengthen china’s economy, and catch up with the western world, but ended during the Cultural Revolution. A series of natural disasters like shortage of water, starvation led to the worst period in china’s history. 2.3 Cultural Revolution However the Cultural Revolution...
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...the profession to the crisis of credibility being faced because society perceived accountants to have lost their commitment to public service. The credibility of the profession is threatened when the ideals of integrity, independence, public service and ethical standards come under suspicion. Well-known scandals of one of the major leading accounting firms in the United States Arthur Andersen coupled with alleged unethical acts committed by Enron have arouse the conscious of the public and stakeholders as to the moral decline and unethical posture of public accountants unveiled a decline in moral reasoning and ethical standards of public accountants (Dellaportas, 2006; Esmond-Kiger, 2004). Over the last few years, the accounting profession has been beaten up badly in the media, somewhat justifiably. The forces at work were numerous and complex and a variety of phenomena created the entire profession had its reputation tarnished. Some forces were not new: delivering services that acted to impair independence; becoming too cozy with clients, active participation in finding ways to circumvent accounting standards, and even simple greed. The profession has paid dearly for failing to meet the expectations of investors, creditors, and other users of financial statements. Finally, the public lose their trust and confidence on the accounting profession and thus, the professional standing of accountant is jeopardized. There are several ethical issues faced...
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...Malaysia Keywords Accounting profession, Malaysia, Standards Abstract This paper offers insights into the conflicts and tensions within the Malaysian accounting profession and the power struggle therein to dominate the accounting standard setting process, within the context of a rapidly developing country. It shows how interest groups and parochial interests, along with issues of self-protection, affected the process of standard setting, which was controlled by different interests over the period under study. At one time the profession dominated. But far from being a monolithic body, it was in turn split according to various interests: the Big Six behind the Malaysian Association of Certified Public Accountants (MACPA) and the smaller firms behind the Malaysian Institute of Accountants (MIA). At other times big business prevailed. These conflicts and power struggles are revealed through an analysis of the case of the Goodwill Accounting Standard. Selvaraj D. Susela 358 Introduction This paper offers an understanding of the struggle within the accounting profession for control of the standard setting process, in the context of a developing nation. The focus on standard setting is specially geared to reveal the impact of that process on the profession, market, state and community, and vice versa. Susela (1996) illustrates that because standards clearly impact on practitioners (the profession), it is hardly surprising that they develop ``interests'' around standard setting...
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...Term Paper Kaplan University March 20, 2015 Regulations: Accountants Responsibilities Accountants have many responsibilities in different areas. They have responsibilities to clients, to thirds parties, and to the government. They have a responsibility to know the regulations, rules and laws that have been put in place for accountants. Lastly accountants have a responsibility to perform their obligations and duties by the code of conduct and to the code of ethics. We will start off with the client. The client by definition is the person who pays the professional or organization for services; the person who engages the professional for their advice or services they render. (Legal Dictionary) For these services the client must cooperate with the accountant in every aspect the accountant deems fit, within the scope of their profession. The accountants responsibilities to the client include to act with integrity, objectively, due care, competence, fully disclose any conflict of interest, maintain client confidentiality, disclose fees to client, and serve the public interest when providing financial services, (AICPA code of conduct) Accountants can also have fiduciary duties to a client if the accountant gives advice to a client involving taxes, assessing management or business consulting. Fiduciary is a legal duty to act solely in the best interest of the client. The case below involves an Atlanta-based accountant breaching his fiduciary duty involving client confidentiality...
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...(SOX), a new era of stakeholder expectations was crystallized for the business world and particularly for the professional accountants that serve in it. The drift away from the professional accountant’s role as a fiduciary to that of a businessperson was called into question and reversed. The principles that the new expectations spawned and renewed resulted in changes in how the professional accountants are to behave, what services are to be offered, and what performance standards are to be met. These standards have been embedded in a new governance structure and in guidance mechanisms, which have domestic and international components. The influence of the International Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) will be as important as that of SOX in the long run. This chapter examines each of these developments and provides insights into important areas of current and future practice. Building upon the understanding of the new stakeholder accountability framework facing clients and employers developed in earlier chapters, this chapter explores public expectations for the role of the professional accountant and the principles that should be observed in discharging that role. This leads to consideration of the implications for services to be offered, and of the key “value added” or competitive edge that accountants should focus their attention on to maintain their reputation and vitality. Sources of ethical governance and guidance are...
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...successful and honoured profession. For the study of accountancy in Africa, Nigeria is important for several reasons. Nigeria, the most populous country in Africa, has crude oil as her main export and she has remained a rentier state in terms of revenue generation. The need for legal regulations for exercising accounting profession came to reality on September 1, 1965 by the enactment of the Institute of Chartered Accountants of Nigeria Act (ICAN). Some decades later the Association of National Accountants of Nigeria was established by law. For the accountants to truly play a leadership role in their field, they must be proactive participants in the development process. Nigeria became independent in 1960 at the crest of a global wave of decolonization. Nigeria was born a giant. Economically it started out on a strong base, when its per capita income was higher than those of India, Pakistan and the Congo. She could feed her people and was a leading exporter of palm produce, cocoa, groundnuts, cotton and tin ore. Then came the oil boom, the explosion of international oil prices transformed the macroeconomic situation...
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...Introduction Accounting theory is aiming to provide a coherent set of conceptual principles which form the general frame of reference for the explanation and development of facts of the accounting practices. There is no universally accepted single theory of accounting since there are so many different perspectives on the role of accounting theory. Also, a researcher’s own experience and value can effect which theory they support. This paper is mainly focus on the positive accounting theory and normative accounting theory. Positive accounting theory is introduced by accountants, which seeks to explain and make good predictions of real world phenomena then translate them to accounting practice, rather than prescribing such practice. For example, which particular accounting policies are likely to be adopted by a firm; or how a firm will react to the recently introduced accounting standards. This theory is based on the proposition that individuals (e.g. managers, shareholders and regulators) are rational and that they are motivated to maximize their own benefits, so they organize themselves efficiently. However, the limitation is people tend to lose the notions of morality and ethics. Positive accounting theory is also help to explain the relationships between individuals and the role accounting play in such relationships, like agency relationship. The agency relationship describes the relationship between the principals (e.g. shareholders) and agents (e.g. managers). Rely on the...
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...ACC 622-Assignment #1 On January 17th,2012, the Certified Management Accountants of Canada (CMA Canada), the Canadian Institute of Chartered Accountants (CICA) and the Certified General Accountants of Canada (CGA-Canada) presented members with a framework to unify the Canadian accounting profession. Within this framework this new profession would adopt the Canadian designation Chartered Professional Accountant (CPA). All current members would be required to use it in conjunction with their existing designations. After new members get their designation there would be post-designation specialties to peruse such as tax, forensic accounting, strategic management, and public sector accounting. The unification of the Canadian profession would simplify operations and governance because it would reduce the number of governing bodies from 40 to 14, also reducing confusion in the marketplace. These newly combined provincial and national bodies would have a new Board of Directors that would include representation from each of the participating bodies. The CPA designation is the largest accounting designation in the world and as such a large entity it could ensure that the Canadian accounting profession would be able to influence international standard setting bodies. The very first step to unification started with Quebec. In one unified decision all of the accounting bodies in Quebec were on board. On May 16th, 2012, the Quebec CA, CMA and CGA bodies announced that the Province of...
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...Malaysia Keywords Accounting profession, Malaysia, Standards Abstract This paper offers insights into the conflicts and tensions within the Malaysian accounting profession and the power struggle therein to dominate the accounting standard setting process, within the context of a rapidly developing country. It shows how interest groups and parochial interests, along with issues of self-protection, affected the process of standard setting, which was controlled by different interests over the period under study. At one time the profession dominated. But far from being a monolithic body, it was in turn split according to various interests: the Big Six behind the Malaysian Association of Certified Public Accountants (MACPA) and the smaller firms behind the Malaysian Institute of Accountants (MIA). At other times big business prevailed. These conflicts and power struggles are revealed through an analysis of the case of the Goodwill Accounting Standard. Selvaraj D. Susela 358 Introduction This paper offers an understanding of the struggle within the accounting profession for control of the standard setting process, in the context of a developing nation. The focus on standard setting is specially geared to reveal the impact of that process on the profession, market, state and community, and vice versa. Susela (1996) illustrates that because standards clearly impact on practitioners (the profession), it is hardly surprising that they develop ``interests'' around standard setting...
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...stated roles can be perform successfully, accountants, as professionals, are expected to maintain a level of ethical conduct that goes beyond society’s laws. They have the responsibility to ensure that their duties are performed in conformity with the ethical values of honesty, integrity, objectivity, due care, confidentiality, and the commitment to the public interest. Luca Pacioli, the "Father of Accounting", wrote on accounting ethics in his first book Summa de arithmetica, geometria, proportioni, et proportionalita, published in 1494. Ethical standards have since then been developed through government groups, professional organizations, and independent companies. These various groups have led accountants to follow several codes of ethics to perform their duties in a professional work environment. However, accountants’ involvement with large corporate scandals in recent times reflects that they have not complied with the expected ethical standards. Thus, ethics has become a key area of concern in accounting at present owing to the series of corporate scandals that had taken place in the world questioning the credibility of the accounting profession. These scandals have placed in doubt the effectiveness of contemporary accounting, auditing and corporate governance practices, for which accounting profession is responsible for. Unethical Accounting Practices Accounting ethics has been deemed difficult to control as accountants and auditors must consider the interest...
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...Yekaterina Romanovich American Intercontinental University Unit 1 Individual Project Acct 310- Managerial Accounting February 17, 2013 The importance of a managing accountant to document and understand current spending as well as the cash flow. Reading future money patterns to know where and when to spend while still making money for the company. Using accounting information for managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. The knowledge to look forward and correct predict cash flow. Managing accountants aid companies in direct monitoring as well as measuring the efficiency of their accounting operations. While also focusing on limiting abuse or fraud by employees, managing accountants provide owners and managers with equitable assurance that the company’s financials are in order and there is room for profitable growth in the future. While managers plan the fiscal expenditures for a company, they need to acknowledge current expenses and limit said monies to remunerate back into the company. (Shanker, 2013) Owners and managers can use internal controls to limit the number of individuals who have access to the company’s accounting information. In doing so, they limit the opportunity for abuse of the sensitive information. Although both managerial accounting and financial accounting are crucial to a company’s success, managerial...
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...computers with personal computers which were affordable to most users has ushered us into an era of proliferation of information, speed of assess to and ability to disseminate information. The information technology revolution has brought about a drastic change in the business environment, its structure and the business process. Information technology has become a strategic tool that drives the strategic initiatives of organizations and businesses. Manual processes have been replaced with automated processes, routine bookkeeping and recording of financial information is being done electronically, and the ease and speed of transacting business has greatly increases. The accountant as a major player in the public and private sectors cannot afford to be left out. To function properly and competently the accountant must take the changes brought about by information technology in stride, the accounting professional must be proficient in the use of modern information technology tools in order to remain relevant , solve business problems and provide value added services to his clients in the public and private sectors. In this paper we seek to assess the impact of information technology on the Nigerian Accounting Environment. Has the impact been...
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..._la_stabilite_financiere/etud1_1008.pdf Australian United Investment Company Limited. (2009). Annual report. Retrieved from http://www.aui.com.au/resources/30%20June%202009%20- %20Final%20Docs%20-%20AUI/AUI%20- %20Annual%20Report%202009%20-%20Final.pdf Australian Accounting Standards Board. (2004). AASB 139 „Financial Instruments: Recognition and measurement‟. Vic., Australia: AASB Australian Accounting Standards Board. (2009). AASB 9 „Financial Instruments. Vic., Australia: AASB Bentley, P. A., Franklin, M. A. (2013). Which international cultures favor disclosure of risk. International Journal of Business, Accounting, & Finance. 7(2), 62-76. Institute of Chartered Accountants Australia. (2012). AASB 9 Financial instruments. Retrieved from http://www.charteredaccountants.com.au/Industry- Topics/Reporting/Australian-accounting-standards/Analysis-of-AASB- standards/AASB-9--Financial-instruments Institute of Chartered Accountants Australia. (2012). AASB 139 Financial 7 instruments: recognition and measurement. Retrieved from http://www.charteredaccountants.com.au/Industry- Topics/Reporting/Australian-accounting-standards/Analysis-of-AASB- standards/AASB-139--Financial-instruments AASB 139 (IAS 39) in Australia – The main challenges for everyone else. (2006). Retrieved from http://ozrisk.net/2006/09/28/aasb-139-ias-39-in-australia- the-main-challenges-for-everyone-else/ Loftus, J. (2006). What do you get when you mix measurement methods and priciples...
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...9/02/2015 YOUR JOURNEY INTO ACCOUNTING CHAPTER 1 Decision making and the role of accounting • Accountants – Not just ‘bean counters’ or ‘number crunchers’ – Varied and interesting work in a variety of roles – More focus on analytical and communication skills • Non-accountants PowerPoint Presentation by Phil Johnson ©2015 John Wiley & Sons Australia Ltd LEARNING OBJECTIVES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Outline the dynamic environment in which accountants work Discuss the nature of decisions and the decision-making process Outline the range of economic decisions made in the marketplace Explain the nature of accounting and its main functions Identify the potential users of accounting information Apply information to make basic economic decisions Describe the role of accounting information in the decision-making process Compare accounting information for management and external users Summarise how the accounting profession is organised in Australia Identify the different areas of the economy in which accountants work Identify the importance of ethics in business and accounting and how to recognise and handle ethical dilemmas as part of the decision-making process. YOUR JOURNEY INTO ACCOUNTING • Accounting – Not ‘boring’ (mostly!) – Much more than just bookkeeping – Dynamic environment – The language of business • If you don’t have some understanding, you’re not in the conversation – Benefits of basic understanding ...
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...Professional Knowledge and Abilities American Accounting Association Introduction The following will describe the American Accounting Association (AAA), the ability the organization can attribute to my professional career and knowledge, and how this knowledge can be an attribute to my career success. How it will also help me to develop strategies and skills that will in the long run allow me to be a great asset to any agency in which I choose to work for . Describe AAA The American Accounting Association promotes worldwide excellence in accounting education, research, and practice (AAA, 2010). The AAA, founded in 1916, was first known as the American Association of University Instructors in Accounting until 1936 when the association name was changed. The American Accounting Association is composed of voluntary persons and professionals that are interested or involved in accounting, accounting education, and research (AAA, 2010). American Accounting Association Mission The American Accounting Association mission is “to further the discipline and profession of accounting through education, research, and service” (AAA 2010). The Association acknowledges that its members share a number of common values, which include the importance of their personal integrity, their objectivity, sense of community, open communications, respect for each other, high ethical values and personal behaviors, and an obligation to serve important stakeholders, including the broader society...
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