Global Financial Reporting

Abstract

BACKGROUND 1 Globalization 1.1 Why study global financial reporting? 1.2 The globalization of the world economy 1.3 International trade 1.4 Cross border investment 1.4.1 Foreign direct investment 1.4.2 Portfolio investment 1.5 The multinational enterprises 1.6 The globalization of finance 1.7 The financial reporting of the multinational enterprises 1.8 The Pentad 1.9 The rest of the book 1.10 The use of the Internet Annex: Useful internet addresses 2 The Causes of Diversity 2.1 The contingent theory of accounting 2.2 The factors that shape financial reporting 2.3 The state 2.3.1 The political system 2.3.2 Law 2.3.3 Taxation 2.3.4 The regulation of dividends and the maintenance of the corporation's capital 2.3.5 Conclusion: the dominating influence of the state 2.4 The corporate financing system 2.4.1 The capital market v vi Contents 2.4.2 Direct provision of finance 2.4.3 The form of financing: equity versus debt 2.4.4 The influence of finance on financial reporting 2.5 The accountancy profession 2.6 Environmental factors 2.6.1 Other interested parties 2.6.2 Accounting theorists 2.6.3 Inflation 2.6.4 Colonialism 2.6.5 Accidents of history 2.6.6 Other environmental factors 2.7 Culture 2.8 Synthesis: the Anglo Saxons versus the rest of the world 2.9 Conclusions 3 Regulation 3.1 Why are rules necessary? 3.1.1 Preparers versus users 3.1.2 The reluctance of preparers 3.1.3 The information needs of users 3.1.4 The use of accounting numbers in contracts 3.1.5 The need for rules 3.2 The role of the government 3.2.1 The politics of law-making 3.2.2 The advantages of law 3.2.3 The need for additional rules 3.3 The hierarchy of rules 3.3.1 Law 3.3.2 The second level: delegated legislation and court judgements 3.3.3 The lower levels of the hierarchy 3.4 The national regulatory system part two COUNTRY STUDIES 4 Britain 4.1 Why Britain is important for the student of financial reporting 4.2 The origins of British financial reporting 4.3 The separation of control from ownership 4.4 Britain's institutional framework 4.4.1 The state 4.4.2 Taxation 4.4.3 The corporate financing system 4.4.4 The accountancy profession 4.5 The British regulatory system Contents vii 4.5.1 A model of the British regulatory system 4.5.2 The Companies Act 4.5.3 Accounting standards 4.5.4 Stock exchange listing rules 4.5.5 Professional rules 4.5.6 Accepted practice: 'true and fair view' 4.5.7 Synthesis: UK GAAP 4.6 The principal characteristics of British financial reporting 5 The USA 5.1 The importance of the USA 5.2 The origins of American financial reporting 5.3 The institutional framework 5.3.1 The state 5.3.2 Taxation 5.3.3 The corporate financing system 5.3.4 The accountancy profession 5.3.5 The universities 5.4 The American regulatory system 5.4.1 The government 5.4.2 The SEC: the Securities and Exchange Commission 5.4.3 The FASB: the Financial Accounting Standards Board 5.4.4 Congress v. the SEC v. the FASB 5.5 US GAAP 5.6 The essential characteristics of American financial reporting 6 France 6.1 The importance of France for the student of financ...

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