Language differences among nations can present information barriers to financial statement users. Most corporations domiciled in non-English-speaking nations publish their annual reports in the dwelling country language. Having said that, growing numbers in the fairly huge corporations in developed economies deliver English-language versions of their annual reports.
Accounting terminology differences may also trigger difficulty.28 As an example, U.S. readers associate the term stock with certificates of corporate ownership. Readers in the United Kingdom, however, associate the term with a firm’s inventory of unsold goods. Other examples of terminology differences amongst the United Kingdom and the United States include turnover (sales income), and debtors and creditors (accounts receivable and payable).
In summary, many substantial challenges confront the user of international economic statements. Maybe one of the most tough concerns concern foreign currency and also the availability and credibility of economic data. Difficulties with foreign currency will most likely have a pervasive influence on international accounting for some time. In contrast, difficulties related to information availability and credibility are gradually decreasing as additional and additional corporations, regulatory authorities, and stock exchanges recognize the the significance of enhancing investors’ access to timely and credible information and facts.
Accounting terminology differences may also trigger difficulty.28 As an example, U.S. readers associate the term stock with certificates of corporate ownership. Readers in the United Kingdom, however, associate the term with a firm’s inventory of unsold goods. Other examples of terminology differences amongst the United Kingdom and the United States include turnover (sales income), and debtors and creditors (accounts receivable and payable).
In summary, many substantial challenges confront the user of international economic statements. Maybe one of the most tough concerns concern foreign currency and also the availability and credibility of economic data. Difficulties with foreign currency will most likely have a pervasive influence on international accounting for some time. In contrast, difficulties related to information availability and credibility are gradually decreasing as additional and additional corporations, regulatory authorities, and stock exchanges recognize the the significance of enhancing investors’ access to timely and credible information and facts.
Elmer Tamayo is the author of myaccountinginfo.net who took-up his degree of "BS in Accountancy" major in accounting. A Web designer and blogger, His passion is Reading books, searching new tech update on the world wide web. Read More...
