Does every Country have differ Accounting rules!

Joined
Jan 23, 2013
Messages
5
Reaction score
0
I am always confused regarding accounting rules of countries. I found always differ rules and regulations.
 
Joined
Mar 10, 2013
Messages
12
Reaction score
0
What do you mean? Different income tax rules or different cost accounting rules, etc. Can you please clarify?
 

bklynboy

VIP Member
Joined
Oct 12, 2011
Messages
595
Reaction score
112
Country
United States
Generally yes and there is no real international standard. IFRS is an attempt to have a common rule but even this when adopted by countries is politized and they change certain aspects to suit their own needs. Overall I think IFRS is mostly comparable across countries and is the best chance at convergence.
 
Joined
Apr 12, 2013
Messages
2
Reaction score
0
In my opinion,The biggest difference among the countries about accounting rules is about valuing long term fixed assets and recognizing income.I think basics of financial accounting is same in all countries.
 

Samir

VIP Member
Joined
Aug 15, 2013
Messages
378
Reaction score
39
Country
United States
Answer in one word--YES!

VAT vs tax, tax assessments, income tax vs none, health care deductions vs provided care, etc., etc., etc.

There's enough details to worry about in just one country. Comparing countries' various systems will make your head spin...
 
Joined
Apr 7, 2020
Messages
7
Reaction score
0
Country
United States
The primary reason for adopting one standard internationally is that if different accounting standards are used, it's difficult for investors or lenders to compare the financial health of two companies. ... Companies in these countries have a tighter relationship with banks.
 
Joined
Apr 25, 2017
Messages
58
Reaction score
4
Country
India
First of all each country does not have it's own set of accounting standards. Generally most either use U.S. Generally Accepted Accounting Principals (GAAP) or International Financial Reporting Standards (IFRS).

There has been in project in the works for at least the last decade to combine these two into one set up high quality accounting standards used through out the world. This is commonly referred to as convergence.

The project has run into several hurtles and in recent years seems to have stalled or slowed down significantly. Generally speaking IFRS is more a principals based approach and US GAAP is more rules / tests based. IFRS is more flexible and leaves more room for interpretation.

Some of the largest differences between the two include:

Accounting for leases
Revenue recognition
Mark to market or using a fair value approach to valuing assets.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,783
Messages
27,852
Members
21,797
Latest member
4GTFull1

Latest Threads

Top