ACCOUNTING

Accounting

Abstract

This paper traces the benefits of international accounting information systems-their contribution to standardization and harmonization by purposing and tasking for business management. In this review, the goal is to describe and summarize how the accounting information system can help management decisions and influence the business environment in a global scale. The unified, standardized accounting information system will lead to new types of analysis and data, furthermore with the possible integration of new indicators from the business management practice of certain countries. The purpose of this study was the measuring the differences between the national rules and the international methods by countries, then the valuing and analyzing their effects on the business environments. The study showed that both businesses earnings and stock returns effect on the management turnover. The businesses with lower labor productivity compared to their industry peers have greater incentives to adopt international accounting system. However, the results on turnover are sensitive to this change in variable specification. So the increase in the sensitivity of turnover to accounting performance post adoption is primarily driven by heightened turnover sensitivity to accounting losses. The empirical results could be the author's suggestions for business management.

Table of Contents

Introduction4

Literature Review6

Methodology9

Empirical Results12

Conclusion13

References15

Accounting

Introduction

In this review, the goal is to describe and summarize how the accounting information system can help management decisions and influence the business environment in a global scale. The unified, standardized accounting information system will lead to new types of analysis and data, furthermore with the possible integration of new indicators from the business management practice of certain countries. Historically, standardization of the international accounting information systems has tended to follow the integration of the markets served by the accounts. For example, the move to unified national accounting system in the US in the early 20th century followed the integration of the national economy. Similarly the present impetus for global accounting standards follows the accelerating integration of the world economy. Without the common accounting standards the cross border portfolio and direct investment may be distorted, the cross-border monitoring of management by shareholders obstructed, and the cross-border contracting inhibited and the cost of these activities may be needlessly inflated by complex translation (Meeks and Swann, 2009). In case such multinational companies like Daimler Chrysler owning more than 900 subsidiaries, operating on 5 continents in more than 60 counties, the published financial results according to international standards is 1.5 times of the one according to German accounting standards. If earning after taxation (EAT) - deducted actual tax burdens - according to US Generally Accepted Accounting Principles (GAAP) is taken as 100 percent, due to differences between national accounting standards, EAT would be 25% more in UK, 3% less in France, 23% less in Germany and 34% less in Japan (Barth et al., 2007). The purpose of the use of international accounting information system is that a single set of standards ensures similar transactions are treated the same by companies around the world, resulting in globally comparable financial ...