Question

Today, there are a host of accounting issues that impact the financial statements of international corporations. Please discuss one topic, such as international accounting standards, and explain how they affect the preparation of consolidated financial statements for international companies. Please comment in 200 words or more, using proper citation if applicable.

Answer 1

Šet oud simpie rules so theet they can be systemcudicouuy, Consisten dy, aml Comparable cuross fhe globé. IFRS hees been gemteel by the internutioncel Accounting stemelurds fourd (JA SB).How the organizadion hees meinterineol their cleeounts . It has fo be reporteel Specifies hod to cmalyze fremsactions amel taeirother impueting finuncial fromsaetion s, cml reports to the consolidated regal entities . IFRS esteubiisheel to creeete a common accounting demguege so thut orgemi- Zutions cmel their finemcicel steeternents com be organizeel, cohesenty ,rdy cmother Coumtry. The compomies then combine these phruses in the fincel Phuse of the bulemce Sheet, in come teutement cmel caph Flow Stetemento one ompeny cmdl the gest of lits 3meels

a financicel Compamies Cem form institution .Rimunda) tremscetions between investors, cmd consumers cuice cre impordemt fo mənitor the overall situdetion. If a piocute compuny reports intener tionally, i ó importent o plan ceccordling to the guidelines of the international finemcicel Reporting Stemeleurele (IFRD of the internationey Accountiny Bourd .It is importemt for GAAP omd Ifrs to report consoviclated Steeterments coith other Companies, what ii dinportemt es thet porent compeny amel its ather commpanies will use the syme accoumsing to proclces both consoicdceteel stecementse These companies theet deeide to create convolidated Anemcial stedements to creatk consoicdated fnuncicel steetemends coith subsidianes becuuse accounting

Consinidation need to Imvesd in the Pinancical accounding infrastructurt. In this way ethay cffeet the poepurution of consideutécl financial Steitements for Internutional Compumies-