Essay --

INTERNATIONAL ACCOUNTING ASSIGNMENT Q.1) A brief history of the two organisations, and their objectives, in as far as theyrelate to accounting practices regionally and/or internationally, as necessary. A.1)1. EUROPEAN UNION (EU) The EU was initially formed in the mid 1940's to unite neighbouring nations developed to have a considerably more critical and important purpose. In 1957 the European Economic Community (EEC) was made to fabricate and incorporated economic market between the six establishing parts of the EU. The EEC was referred to a common market between the countries and over the time period more and more and more nations joined the EU, the EEC later got known as the European Community (EC). The EC turned into one of the primary mainstays of the EU and its point was to help make a local market between membered nations where there is an opportunity of transporting products and labour. As the amount of nations expanded the EU set directives for every nation to accompany to harmonise bookkeeping practices, these directives are listed below: ï  ¶ The endeavor to harmonise bookkeeping practices was by means of the issuing of directives ï  ¶ EU directives have the power of law and the member states are obliged to join the directives into their laws ï  ¶ They are trying to bind the member states, yet the outcomes that are accomplished are at the discretion of each member nations. ï  ¶ Two directives pointed at harmonising bookkeeping ï  ¶ The fourth directive of 1978 includescomprehensive bookkeeping standards for the individuals, and not for united records ïÆ'Ëœ Measurement (Valuation) guidelines, ïÆ'Ëœ The guidelines for the making of financial statements ïÆ'Ëœ Disclosure of data for both public and privately owned businesses ïÆ'Ëœ Establish the 'tr... ...combinations leading to the SEC removing the requirements for reconciliations CONCLUSION: The globalization is increasing in the world and the companies are going abroad to enter into new markets and capture new customers as well as the investors. The companies need to make accounts according to the new country and the investors need to study the financials of the company before investing into it. This is a problem as due to difference in the accounting standards are causing problems and hence.The financial reporting systems are converging, as international capital markets become more investor oriented since the investors now want to invest more in oversees and the globalization is increasing day by day there is an urgent need to make the accounting information comparable. The International Accounting Standards Board is at the center of the convergence movement now.