Comparative international accounting

601 Pages·2010·4.424 MB·English

by  Nobes, Christopher, Parker, Robert

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Now firmly established as the leading text in the field, Comparative International Accounting T
takes a comprehensive look at the international dimensions of financial accounting and M
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reporting. The book, which includes contributions from a diverse group of international
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practitioners and academics, has been carefully shaped into a coherent whole. This ninth
edition has been extensively rewritten and fully updated to incorporate the latest N A
developments in the field, especially the adoption of international standards in many
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countries. A
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Features New to this edition I T
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■ Broad overviews supported by detailed ■ Six brand new chapters have been added, I
information on real countries and including chapters on the regulation of N V
companies; accounting and the politics of standard
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setting; A
■ Across-the-board comparisons of major
topics; ■ Separate consideration of group L
accounting by listed companies and of
■ Examination of the requirements of
individual company accounting under A
International Financial Reporting
domestic rules;
Standards and of US GAAP; C
■ More coverage of the impact of
■ Studies of accounting in Japan and C
accounting differences on capital markets
China.
and on analysis. O
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Instructors’ resources include an expanded Suggested Answers section in the back of the
book. Also, in addition to an Instructor’s Manual, unique PowerPoints for each chapter are N N
available online as well as links to real financial statements. IN
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Comparative International Accounting is ideal for students at both undergraduate and H
postgraduate levels taking courses in comparative and international accounting. I E
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Christopher Nobes is PricewaterhouseCoopers Professor of Accounting at the University of N
Reading, UK. From 1993 to 2001 he was a representative on the board of the International
Accounting Standards Committee.

Robert Parker is Emeritus Professor of Accounting at the University of Exeter, UK. He was a C
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formerly editor of the journal Accounting and Business Research. d
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Both authors have received the American Accounting Association’s award of ‘outstanding ot
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international accounting educator’. bp
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ISBN 0-273-70357-9 s

Cover image ©Getty images
9 780273 703570
Additional student support at
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COMPARATIVE
INTERNATIONAL ACCOUNTING

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Ninth Edition
COMPARATIVE
INTERNATIONAL
ACCOUNTING
Christopher Nobes
and
Robert Parker

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Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First edition published in Great Britain under the Philip Allan imprint 1981
Second edition published 1985
Third edition published under the Prentice Hall imprint 1991
Fourth edition published 1995
Fifth edition published under the Prentice Hall imprint 1998
Sixth edition published 2000
Seventh edition published 2002
Eighth edition published 2004
Ninth edition published 2006
© Prentice Hall Europe 1991, 1995, 1998
© Pearson Education Limited 2000, 2002, 2004, 2006
Chapter 17 © John Flower 2002, 2004, 2006
The rights of Christopher Nobes and Robert Parker to be identified as authors
of this work have been asserted by them in accordance with the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without either the prior written permission of the
publisher or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.
ISBN 10: 0-273-70357-9
ISBN 13: 978-0-273-70357-0
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
A catalog record for this book is on file with the Library of Congress

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Typeset in 9.5/12.5pt Stone Serif by 35
Printed and bound in Great Britain by Ashford Colour Press, Hampshire
The publisher’s policy is to use paper manufactured from sustainable forests.
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Contents
Contributors xiv
Preface xvi
Part I SETTING THE SCENE
1 Introduction
3
Contents 3
Objectives 3
1.1 Differences in financial reporting 4
1.2 The global environment of accounting 5
1.3 The nature and growth of MNEs 12
1.4 Comparative and international aspects of accounting 15
1.5 Structure of this book 19
Summary 21
References 22
Useful websites 22
Questions 23
2 Causes and examples of international differences
24
Contents 24
Objectives 24
2.1 Introduction 25
2.2 Cultur e 25
2.3 Legal systems 28
2.4 Providers of finance 29
2.5 Taxation 33
2.6 Other external influences 34
2.7 The profession 36
2.8 Conclusion on the causes of international differences 37
2.9 Some examples of differences 38
Summary 46
References 47
Further reading 49
Questions 49
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Contents
3 International classification of financial reporting
51
Contents 51
Objectives 52
3.1 Introduction 52
3.2 The nature of classification 53
3.3 Classifications by social scientists 53
3.4 Classifications in accounting 55
3.5 Extrinsic classifications 56
3.6 Intrinsic classifications: 1970s and 1980s 60
3.7 Developments related to the Nobes classification 66
3.8 Further intrinsic classification 67
3.9 Is there an Anglo-Saxon group? 69
3.10 A taxonomy of accounting classifications 69
Summary 70
References 71
Questions 73
4 International harmonization
74
Contents 74
Objectives 74
4.1 Introduction 75
4.2 Reasons for, obstacles to and measurement of harmonization 76
4.3 The International Accounting Standards Committee 78
4.4 Other international bodies 87
4.5 The International Accounting Standards Board 91
Summary 94
References 94
Useful websites 96
Questions 97

Part II FINANCIAL REPORTING BY LISTED GROUPS
5 The context of financial reporting by listed groups
101
Contents 101
Objectives 101
5.1 Introduction 101
5.2 IFRS in the EU 102
5.3 Adoption of, and convergence with, IFRS 103
5.4 Foreign listing and foreign investing 104
5.5 Reconciliations from national rules to US GAAP and IFRS 107
5.6 High-level IFRS/US differences 108
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Contents
5.7 Reconciliations from IFRS to US GAAP 110
5.8 Convergence of IFRS and US GAAP 111
Summary 112
References 113
Useful websites 114
Questions 114
6 The requirements of International Financial
Reporting Standards
115
Contents 115
Objectives 116
6.1 Introduction 116
6.2 The conceptual framework and some basic standards 116
6.3 Assets 123
6.4 Liabilities 126
6.5 Group accounting 127
6.6 Disclosures 129
Summary 129
References 130
Further reading 130
Useful websites 130
Questions 131
Appendix 6 An outline of the content of International Financial
Reporting Standards 132
7 Financial reporting in the United States
142
Contents 142
Objectives 143
7.1 Introduction 143
7.2 Regulatory framework 144

7.3 Accounting standard-setters 147
7.4 The conceptual framework 150
7.5 Contents of annual reports 153
7.6 Accounting principles 158
7.7 Consolidation 164
7.8 Audit 166
7.9 Differences from IFRS 167
Summary 169
References 170
Further reading 171
Useful websites 171
Questions 171
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Contents
8 Enforcement of Financial Reporting Standards
173
Contents 173
Objectives 173
8.1 Introduction 173
8.2 Modes and models of enforcement 174
8.3 United States 178
8.4 European Union 178
8.5 Australia 185
Summary 185
References 186
Useful websites 188
Questions 188
9 Political lobbying on Accounting Standards – national
and international experience
189
Contents 189
Objectives 189
9.1 Introduction 190
9.2 Motivations for political lobbying 191
9.3 Political lobbying up to 1990 193
9.4 US political lobbying from 1990 205
9.5 Political lobbying of the IASC/IASB 208
9.6 Preparer attempts to control the accounting standard-setter 211
9.7 Political lobbying of the FASB’s convergence with the IASB 213
9.8 Some concluding remarks 215
Summary 215
References 216
Useful websites 218
Questions 218

Part III HARMONIZATION AND TRANSITION IN EUROPE
AND EAST ASIA
10 Harmonization and transition in Europe
221
Contents 221
Objectives 221
10.1 Introduction 222
10.2 Harmonization within the European Union 222
10.3 Transition in Central and Eastern Europe 228
10.4 Poland 234
Summary 239
References 240
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Contents
Useful websites 242
Questions 243
11 Harmonization and transition in East Asia
244
Contents 244
Objectives 244
11.1 Introduction 245
11.2 Japan 245
11.3 China 259
Summary 264
References 265
Further reading 267
Useful websites 267
Questions 267
Part IV FINANCIAL REPORTING BY INDIVIDUAL COMPANIES
12 The context of financial reporting by
individual companies
271
Contents 271
Objectives 271
12.1 Introduction 271
12.2 Outline of differences between national rules and
IFRS or US GAAP 272
12.3 The survival of national rules 272
12.4 Financial reporting, tax and distribution 275
12.5 Special rules for small or unlisted companies 276
Summary 276
References 277
Useful webs ites 277
Questions 277
13 Making accounting rules for non-listed business
enterprises in Europe
278
Contents 278
Objectives 278
13.1 Introduction 278
13.2 Who makes accounting rules? 279
13.3 Which business enterprises are subject to accounting rules? 288
Summary 292
References 293
Further reading 294
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