Premium Essay

Accounting Issues Currently Challenging Global Manufacturers

In: Business and Management

Submitted By jameen3
Words 1892
Pages 8
The financial statements of a global manufacturing firm differ from those in the service or merchandising industry primarily with transactions related to material, labor, and overhead. A manufacturing company has three basic inventory accounts: raw materials, work in process, and finished goods. (Goosen, pp. 31-46) Because the cost of goods manufactured is critical, a manufacturing company typically has a statement called cost of goods manufactured. The accounting for overhead in a manufacturing firm involves many complexities as does measuring and assigning values to the various components. In addition, a global manufacturer needs to adhere to the local reporting rules and regulations. Maintaining consistency across all manufacturing locations is one of the largest issues facing global manufacturers.

International Financial Reporting Standards (IFRS)

With the trends of globalization, there is a growing acceptance of IFRS. The IFRS aims to harmonize financial reporting across borders. (The Economist, 2007) Over 110 countries already require or permit IFRS reporting. The underlying assumptions of the IFRS standards and framework are that assets should be valued at the price which it could be currently sold, rather than on a valuation technique. The effect of transactions and other events is recognized when they occur, not as cash is received or paid. Finally, the financial statements are prepared on the basis that an entity will continue in operation for the foreseeable future. (QAD2, p. 5) In the US, the Securities and Exchange Commission (SEC) is moving away from requiring only US GAAP reporting to accepting IFRS reporting and will soon announce a timeline to require IFRS standards in the long term. (QAD1, p. 5) Global manufacturers need to adopt a consistent method of reporting across all manufacturing sites. It starts with replacing…...

Similar Documents

Premium Essay

Global Issue

...World’s Most Ethical Companies. * Three Marriott branded hotels in Fort Worth allowed Catholic Charities Fort Worth (CCFW) to move more than 250 rooms of furniture, including beds, to the Creating Hope Donation Center(Marriott International, 2012). * Marriott Bridges Foundations which was established in 1989 aims to enhance employment opportunities for young people with disabilities. This not-for-profit organization offers these people opportunities from school to work (Marriott Foundation, 2012). * Executives and Officers Table 2 | | J.W. Marriott, Jr.Chairman of the Board and Chief Executive Officer | Carl T. BerquistExecutive Vice President and Chief Financial Officer | Anthony G. CapuanoExecutive Vice President, Global Development | Simon F. CooperPresident & Managing Director, Asia Pacific | Edwin D. FullerPresident & Managing DirectorInternational Lodging | Alex KyriakidisPresident & Managing DirectorMiddle East & Africa | Robert J. McCarthyGroup President | Amy McPhersonPresident & Managing DirectorEurope | David A. RodriguezExecutive Vice PresidentGlobal Human Resources | Edward A. RyanExecutive Vice President andGeneral Counsel | Arne M. SorensonPresident and Chief Operating Officer | | | | | Source: Marriott International, Inc. (2011). 10-K Annual Report 2011. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml * Board of Directors Table 3 | | | Committee Assignment | Company | Title of......

Words: 2528 - Pages: 11

Premium Essay

Global Issue

...Salman_________________________ Global Issue Response Form: Greek Drama (rev. 6/13) (The easiest way to complete the assignment is to download the Word file from CN or MyCourses, save it with your own filename, type your response into the Word document, save the document, and submit it. Please delete excess blank lines in each section.) Before completing this form, please see the sample Global Issue Response on CN and MyCourses (Bb) Submit your response via MyCourses Assignments in the correct folder for this response Check which one of the two relevant Global Studies learning outcomes best relates to your specific Global Issue topic. Your Global Issue response must be on one or more of the plays we have read in this course and the surrounding culture of 5th Century BCE Athens and Greece. _____ Describe and analyze a culture or society outside the United States, or describe and analyze some part or aspect of this culture or society in relation to the wider culture or society of which it is a part. (Choose this outcome for a topic that relates to the entire culture, such as religion, customs, and political structures.) __X___ Identify and analyze cultural or social diversity in a culture or society that is found outside the United States. (Choose this outcome for a topic that relates to some form of diversity within the culture, such as issues involving race, class, or gender.) Identify, in a sentence or two, your specific Global Issue topic and how this......

Words: 1381 - Pages: 6

Premium Essay

Global Warming: Challenging the “Settled” Science

...Global Warming: Challenging the “Settled” Science In December of 1997, political leaders gathered in Kyoto, Japan to contemplate a world treaty restricting human production of “greenhouse gases,” in particular carbon dioxide (CO2). They worried that CO2 would result in a severe and sudden increase in earth’s temperatures, leading to environmental disasters on a global scale. According to the Intergovernmental Panel on Climate Change (IPCC), the preeminent body for the assessment of climate change, humans are responsible for the majority of global warming since 1900, including virtually 100% of the warming since 1970 (IPCC, 2007b, p. 39). In the years since Kyoto, there have been major efforts to bring about worldwide agreement to the treaty, including a recent climate summit—much publicized for its failings—held in Copenhagen. But not everyone is going along with the IPCC. Despite a continuing maelstrom of media hype and alarmist politics, the idea that the earth is warming at an unprecedented rate, due primarily to human influence, is quickly losing ground. This global warming backlash is due in large part to a growing chorus of skeptics and climate experts willing to challenge the prevailing science at the core of the movement. Over 31,000 scientists, including over 9,000 PhDs, have raised concerns over the IPCC’s findings. They have signed a petition stating that the organization’s claims are extreme, that the climate system is more complex than what is now known,......

Words: 4241 - Pages: 17

Premium Essay

Global Issues

...The Global News Stations Blue Ranney ReactionPaper-RanneyB-FA13 Middle East In the Middle East (Southwest, Asia) there has been a war going on for over hundreds of years and many people have lost their lives and some live on to tell their stories. It’s not every day that we hear about everything going on over in the Southwestern region, but there are all sorts of unfathomable crimes taking place as we speak today. I’ve seen on CNBC nightly news the war crimes taking place in Syria. There have been over 180 Syrians killed and over 200 women and children kept as hostages. This is a war crime led by rebels teamed with the government. If it wasn’t for CNBC news I wouldn’t have known about this story. There are numerous different ways to hear about what’s going on in the world today. You can read magazines, watch TV, and get information from the internet. I personally like to stay up with the world news using the internet. Three foundations that I would like to focus on are “Human Rights Watch, NPR, and Alternet”. My first thoughts of these sites, I drew a blank, and didn’t really know what to expect from them. The one similarity that I recognized is how they are funded foundations through charities and donations. The” Human Rights Watch” and “NPR” are both......

Words: 872 - Pages: 4

Premium Essay

Accounting Issues

...receipt of lease payment) | | 5) According to Deegan(2013) disclosure requirements for lessee and lessors have different criteria’s. PART 2 IAS\AASB 117 are both equivalent to that of the rules and regulations issued by the International Accounting Standards Board(Jesswein, 2009). As stated in AASB 117, the purpose is to assist entities in classifying leases as operating or finance leases and to state the appropriate accounting policies with regards to leases(ICAA, 2012). And to also, set a guideline in the disclosure requirements in respect to the lease agreement. Stated in Pounder (2009) a lease agreement specifies the property to be leased, term of lease and payments detailing the amount to be made by the lessee to the lessor. Whereas, the International Accounting Standards Board or shortly known as IASB is a self-governing private body that helps expands and approves International Financial Reporting Standards(AASB, 2010). IFRS which has been adopted by most countries around the world has raised many intense political and legal aspects. The adoption of this process will most definitely affect various users which can vary from preparers, auditors and users (Nobez and Zeff, 2010). The dramatic change towards the acceptance of global standards established by IASB have been used or prescribed in at least 125 jurisdictions. The fact that AASB 117 standard discloses information relating to the operating and finance leases of a company, it will enable creditors to......

Words: 1461 - Pages: 6

Premium Essay

Global Marketing Issues

...in domestic markets. In the following sections we will define international marketing, examine the important trends in the global marketing environment and introduce the reader to the international marketing strategy development and international marketing planning process. LEARNING OBJECTIVES After reading this chapter you should be able to: I I I I Explain and use the SLEPT factors to assess international markets Discuss the differences between export marketing, international and global marketing Understand the criteria required to evaluate a company’s international marketing strategy Appreciate the key steps in the international marketing planning process 3 Copyright 2008 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Licensed to: iChapters User 4 PART 1 ANALYSIS THE STRATEGIC IMPORTANCE OF INTERNATIONAL MARKETING Last year’s international trade in merchandise exceeded US$10.5 trillion and world trade in services is estimated at around US$2.4 trillion. Whilst most of us cannot visualise such huge amounts, it does serve to give some indication of the scale of international trade today. This global marketplace consists of a population of 6.6 billion people which is expected to reach 10 billion by 2050 according to the latest projections prepared by the United Nations. Global wealth is increasing and this is reflected in higher demand. Increasing affluence and commercial dynamism has seen nations...

Words: 17125 - Pages: 69

Premium Essay

Financial Accounting Issue

...is regarded as one of the most important topic in accounting. However, it is most difficult issues that standard setters and accountants must deal with regularly because the accounting standards and rules are changing all the time for improving the quality of accounting, which also explains why there are so many changes over these two decades on Australian Accounting policy. This report will focus on some accounting policies regarding to recognition of revenue from the contracts with customers, its history before the adoption of international financial reporting standards (IFRS). Also, current standards and the convergence between IFRS and US GAAP in future will be discussed. There are some drawbacks and ambiguity on the earlier accounting standard to recognize revenue, therefore it is understood that the international accounting standard board (IASB) and Financial Accounting Standard Board (FASB) are currently working on the policy relating to the recognizing revenue from the contracts with customers. They have decided that the ultimate goal of the convergence is a single set of high-quality, international accounting standards that both domestic and international companies can use. Once the convergence is bringing U.S. GAAP and IFRS closer together in a few years, Australian entities may be influenced by the new proposals. It would be a challenging task for companies because it is difference from the two current accounting standards for recognizing revenue. There will be......

Words: 1929 - Pages: 8

Free Essay

Ethical Issues in a Global Economy

...Ethical Issues in the Global Economy The business world is changing. It is evolving into a fully integrated global economy, where corporations and their managers are faced with moral dilemmas and ethical questions as they expand their operations on a worldwide scale. As raw material sources, supply chains, and production facilities are increasingly being built and moved overseas, businesses are beginning to uncover new issues which complicate their processes and operations. Gray areas are developing relating to humanitarian and labor issues, environmental concerns, and governmental regulations that challenge even the most socially responsible and forward thinking companies. At the same time, citizens and shareholders alike are challenging global firms to address the Triple Bottom Line approach, an approach that equally emphasizes the importance of people, the planet, and profits in measuring the success of any given firm. Companies are still expected to succeed financially, while simultaneously taking care of the environment, their employees, and the communities in which they operate. In order to gain insight into this situation, one may consider The Travels Of A T-Shirt In The Global Economy by Pietra Rivoli. In this case study of a truly global product, Rivoli explores the path that a simple cotton t-shirt follows from raw material, to finished product, and finally on to its own secondary market. She explores the people behind each step in the process, the......

Words: 2900 - Pages: 12

Premium Essay

Accounting Challenges: a Global Perspective

...ACCOUNTING CHALLENGES: A Global Perspective Amber Welch May 17, 2014 BU481 Introduction Herbie Hancock once said, “Globalization means we have to re-examine some of our ideas, and look at ideas from other countries, from other cultures, and open ourselves to them. And that’s not comfortable for the average person”. Globalization pivots on the strength of the business behind it, the focused efforts by accounting and manageability of an industry of leadership, and standards that when faced with challenge, must meet the rising needs of the world. Born from the necessity of standardization, the hurdles of international business, and the wave pool that is the global economy, today, accounting at all levels faces challenges unlike any ever seen in history. To understand how to continue to move forward and face these challenges, it is important to first examine the standards in accounting, and to explore the differences in U.S. standards versus worldwide standards. To look at the development process and the governing bodies surrounding this change, and then examine what change will bring, and whether it is attainable. For continued growth, understanding the modern realm of international business and the changes being seen in accounting leadership as well as the growth of technology, and the mounting concern for ethics in the world environment is as vital as any other component. It is important to explore the economy of the United States versus the world, the impacts of...

Words: 3180 - Pages: 13

Premium Essay

Global Accounting

...GLOBAL ACCOUNTING A. International Accounting proposed that the Nations of the world should be reporting their economic activities in accounting with some general understanding. Examine this statement? B. SAS 9: Accounting for Depreciation. You are required to discuss the requirement of this standard and compare its provisions with International Accounting? A. International Accounting is saddled with the responsibility of preparing and presenting financial statements that provide financial information about the financial position, financial performance, and changes in cash flow of a global business; and shows the result of management’s stewardship of resources in their care. These financial statements are useful to a wide range of users across the globe in making economic decisions. Financial statements comprises of a balance sheet, a profit and loss account, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes (IAS 1). The accounting report is a major way of getting a picture of what a company is doing and how it has been performing over the years (Walton and Aerts, 2006). The information in these financial statements, quantitative and qualitative in nature, should be simple, clear, and easily understood by all users. The users includes individuals, group of investors, or financial institutions who need to determine the liquidity , profitability, and viability......

Words: 2404 - Pages: 10

Premium Essay

Geoengineering: a Global Issue

... 4. Environmental Issues & Science 5. Human Impact 6. Ethical & Justice Issues 7. Conclusion 8. Bibliography Geoengineering: A global issue Essay Abstract Geoengineering is a set of new technologies which aim to change the environment in human favour. Considering the technology is nascent, the morality, ethics, technological knowhow and the human impact are all uncertain as they relate to geoengineering. This paper argues that on these grounds, the geoengineering issue should be a global issue. Local governments fail to implement this technology effectively. The subsidiarity test should be passed when it relates to the geoengineering issue. Introduction With rising CO2 levels, changing weather patterns and an ever increasing intensity of weather events, governments and environmental groups are trying to address the global warming issue. There are many theories on how to deal with climate change; from a reduction in pollution to carbon capture. Geoengineering is a relatively new idea in the field of science which “describes this array of technologies that aim, through large-scale and deliberate modifications of the Earth’s energy balance, to reduce temperatures and counteract anthropogenic climate change.” (Bracmort et all., 2011: 1) The vast majority of technology is nascent and at a theoretical stage but it has the potential to affect populations and climate on a global scale. (Bracmort et all., 2011: 1) Any issue that has the ability......

Words: 2681 - Pages: 11

Premium Essay

Global Issues.

...NAIROBI SCHOOL OF BUSINESS MASTER OF BUSINESS ADMINISTRATION TERM PAPER TOPIC: ISSUES IN GLOBAL BUSINESS MANAGEMENT DSM 602: By DR. YABS NGETICH MONICAH D61/69197/2013 INTRODUCTION The scope of strategic business issues faced by companies and organizations striving to operate and be successful internationally has widened due to an increasingly broad geographic scope and the increasing complexity of technology. Strategic issues arise not only through the formal, periodic strategic planning processes in companies but also can, and quite often do arise unpredictably due to new insights, unexpected advances in technology or competitive activities in the market place. All companies have their way of identifying and dealing with these being their most critical strategic questions. However, theprocess of managing emerging strategic issues is typically non-structured, not necessarily optimally suited to enable the effective identification of the most critical questions and the appropriate allocation of top management attention and corporate intelligence support to answer the identified strategic questions. Despite the past research during 1960s, 1970s, and 1980s into the domain of strategic issues (SI), strategic issue management (SIM), and strategic issue management systems (SIMS) there is a scarcity applicable approaches for firms to use in improving their attention focus and distribution in strategic issue management processes. The underpinnings of strategic management......

Words: 4553 - Pages: 19

Premium Essay

Global Issues

...GI units 1,3 and 4 Through out the assigned Global Issues units certain themes seem to keep coming out that are vital in the world of international business. The emergence of the B.R.I.C is a key ingredient in understanding and planning for the future of international business. Also important is the growing population and the resources needed to sustain these numbers of people. We must also realize the effects that international business has had on the environment and what those effects will mean for us in the future. Finally and probably most all encompassing is the idea of the world evolving into one cohesive unit, better known as globalization of industry. BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India, and China that are deemed to all be at a similar stage of newly advanced economic development. Goldman Sachs argues that the economic potential of Brazil, Russia, India, and China is such that they could become among the four most dominant economies by the year 2050. These countries encompass over 25% of the world's land coverage and 40% of the world's population and hold a combined GDP of 18.486 trillion dollars. On almost every scale, they would be the largest entity on the global stage. These four countries are among the biggest and fastest growing emerging markets. Now that we have properly defined what the BRIC is, we must now step back and view this on a global stage. From a global business standpoint we cannot downplay the......

Words: 1167 - Pages: 5

Premium Essay

Global Issues

...Global Social Issues and Change Paper Vincent Valenzuela, Chuck Pennington, Steven Stoney SOC/100 July 19, 2011 John Gomez Global Social Issues and Change Paper Global social issues are present in all areas of the world affecting world economies, its environment, our capabilities as humans, and our processes for making decisions regarding cooperation at the global level. These issues affect a large number of people around the world, directly or indirectly. It is estimated that some 1.1 billion people are affected currently by violent conflict or at extremely high risk of being affected in the future. The persistence of conflict has ripple effect far and wide. These issues have prompted world leaders to initiate new measures, spearheaded by the U.S. under the Bush Administration after the attack on September 11, 2001. Today, one complex issue that has been around for a long time is terrorism. Modern terrorism has become a global issue that has hit our own country here in the United States. Terrorism defined as, is the use of violence and threats to intimidate or coerce, especially for political purposes or the state of fear and submission produced by terrorism or terrorization. (Dictionary.com) Also, there could be sub categories that terrorism can fall under; political psychological coercive dynamic and deliberate. There are many types of terrorism that are seen throughout the world today. These examples are, but are not exclusive to the following; state terrorism...

Words: 2069 - Pages: 9

Premium Essay

Global Issues

...GAC028 Assessment Event 1: Written Assignment SINGAPORE INTERNATIONAL SCHOOL GLOBAL ASSESSMENT CERTIFICATE Global Issues Student Name: Luong Vien Tai Student ID: KKPS16535 Teacher: Ms Diana Sorobey Due Date: 08/04/2016 Word Count: 1868 Table of Contents Introduction 1 Body 1 Full-body Scanners at Airports 1 The Health Effects of Genetically Modified Foods 2 Scarcity of clean drinking water 3 Introducing technology into the classroom to support learning 3 Conclusion and Recommendations 4 References 6 Introduction Global issues have strongly affected the daily life of humankind which impact social, economic, health and security concerns. For this reason, the aims of the research is to describe the causes and effects by conducting secondary research as well as considering the solution to the problems. The four global issues have been chosen comprising full-body scanners at airports, the health effects of GM foods, scarcity of clean drinking water and technology in the classroom with the purpose of better understanding of prevalent technology, reasons of insufficient water and the food we eat every day. I am interested in technology and I wanted to find out how the technology work in each industry and its effect therefore I chose full-body scanners and technology in education. For scarcity of clean drinking water, I am curious about on how the government solve the problem in order to make further improvement. To be honest, I am worry...

Words: 2591 - Pages: 11