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FINAL EXAM Intl Business

fl

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Carmina Jaime
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30 views3 pages

FINAL EXAM Intl Business

fl

Uploaded by

Carmina Jaime
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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In Partial Fulfillment for the Requirements in

International Business

(FINAL EXAMINATION)

Master in Business Major in Business Administration (MBBA)

University of Batangas – Graduate School

Prepared & Submitted by:

Carmina M. Jaime

1702197

to : Dr. Eden Babasa-Sia

December 2018

Campuses: Hilltop | MH delPilar | Pallocan East | Pallocan West | Lipa

Telephone Numbers: +63 43 723 1446 | 980 0041

Website: www.ub.edu.ph
FINAL EXAMINATION

ADOPTING INTERNATIONAL ACCOUNTING STANDARDS

I. What are the benefits of adopting international accounting standards for (a)
investors and (b) business enterprises?

For Investors, the adopting of a common set of international accounting standards is the key
to facilitating comparisons of companies across borders. When companies use different
accounting systems, comparisons are difficult. For businesses, the adopting of international
accounting standards can be difficult. Some companies find that their financial situation is not as
attractive thanks to differences in the way financial statements are prepared. Others companies
however, benefit from shift.

II. What are the potential risks associated with a move in a nation toward adoption of
international accounting standards?

There are a number of risks associated with adopting international accounting standards.
Some students will probably point out that in a nation with an accounting system that tends to
overstate the value of the company as compared to the value IASB standards would indicate,
economic difficulties could emerge. Other student may suggest that a one-size-fits-all approach

Campuses: Hilltop | MH delPilar | Pallocan East | Pallocan West | Lipa

Telephone Numbers: +63 43 723 1446 | 980 0041

Website: www.ub.edu.ph
might benefit some companies, but harm others. Students making this point might point out that
accounting systems have evolved in each country because of its unique situation, and
implanting a common set of standards could create problems for some companies.

III. In which nation is the move to adoption of IASB standards likely to cause
revisions in the reported financial performance of business enterprises, the
United States or China? Why?

Most students will probably suggest that the adoption of IASB standards would be more
difficult for Chinese firms as compared to U.S. firms. While the U.S. follows the accounting
standards set forth by FASB, there has been an effort to mesh FASB standards with IASB
standards.

*** Thank you ***

Campuses: Hilltop | MH delPilar | Pallocan East | Pallocan West | Lipa

Telephone Numbers: +63 43 723 1446 | 980 0041

Website: www.ub.edu.ph

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