The paper "Global Accounting Standards - Northern Dynasty Ltd" is a perfect example of a finance and accounting assignment. The acceptance of the common robust accounting standards came from various players of the capital markets with many multinational companies and national regulators providing their support, as they are optimistic of better outcomes. The use of common standards will make it very convenient for them to prepare public company financial statements and compare the financial results arising from the reporting entities from various countries and it would also become much easier for investors to comprehend the opportunities better.
It would also enable the large public sector companies with subsidiaries in many productive areas to make use of one accounting language and present their financial statements in almost the same language as their competitors. Moreover many also believe the fact that in a global economy, financial professionals including CPS’ s and other companies will find it more convenient to react to the capital needs of their subsidiaries. Nevertheless many hold the opinion that there would be something missing if International Financial Reporting Standard (IFRS) is fully applied, as U. S.
GAAP is the gold standard. (American Institute of Certified Public Accountants 2008: 5) Advantages of IFRS The reforms and changes that could be seen around the post-Enron era also advocated the importance business and governments places on the transparency of financial reporting. Investors at the global level require easy to comprehend and reliable financial statements enabling them to make the most efficient decisions on their capital allocations. One global standard would also make it convenient for the companies to make measurements and reports on the companies’ financial position and results making it convenient for them to show their efficiency while transferring their capital and labor between different countries.
(Brouwer 2005: 4) Those companies also should be converted to IFRS if they are subsidiary to foreign companies or if they have investors from foreign lands. Besides, it would be beneficial for the company if they want to raise their capital from more than one country. (American Institute of Certified Public Accountants 2008: 3)
American Institute of Certified Public Accountants. 2008. International Financial Reporting Standards (IFRS) [Online] Available: http://www.ifrs.com/pdf/IFRSUpdate_V8.pdf [8 May 2009]
Berkeley Resources Limited. FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005. [Online] Available: http://www.berkeleyresources.com.au/reports/060316%20Half%20Year%20Accounts.pdf [8 May 2009]
Brouwer, R. 2005. International Accounting Standards: Do They Make Business Sense? [Online] Available: http://www.kpmg.ca/en/news/documents/Speech20051128.pdf [8 May 2009]
Chua, W.F., & Taylor, S. L. 2008. The rise and rise of IFRS: an examination of IFRS diffusion. Journal of Accounting and Public Policy, 27: 462-473.
Cox, C. 2008. International Business—An SEC Perspective. [Online] Available: http://www.sec.gov/news/speech/2008/spch011008cc.htm [8 May 2009]
Hughes, S.B.& Sander, J.F. 2007. A U.S. Manager’s Guide To Differences Between IFRS And U.S. GAAP. Management Accounting Quarterly, 8(4). [Online] Available: http://www.imanet.org/pdf/Qsummer07hughes.pdf [8 May 2009]
Street, D.L. 2008. The Impact in the United States of Global Adoption of IFRS. Australian Accounting Review 18(3): 199-208.
Whittington, G. 2005. The adoption of international accounting standards in the European Union. European Accounting Review, 14:127-153.
Yahoo Finance. 2009. Northern Dynasty Early Adopts International Financial Reporting Standards. [Online] Available: http://finance.yahoo.com/news/Northern-Dynasty-Early-Adopts-prnews-14592152.html?.v=52 [8 May 2009]
Zeff, S. 2008. IFRS developments in the USA and the EU, and some implications for Australia. [Online] Available: http://www.frc.gov.au/reports/other/Ken_Spencer_2008.asp [8 May 2009]