1、International Accounting, 6/eFrederick D.S. ChoiGary K. MeekChapter 4: Comparative Accounting: The Americas and Asia1Learning ObjectivesUnderstand how financial reporting is regulated and enforced in five countries of the Americas and Asia: the U.S., Mexico, Japan, China, and India.Describe the key

2、similarities and differences among the accounting systems of these five countries.Describe the auditor-oversight mechanisms in these five countries.Explain the difference between principles-based and rules-based accounting standards.23United StatesOverviewFinancial Accounting Standards Board (FASB)P

3、rivate-sector organization that determines accounting standardsThe Securities and Exchange Commission (SEC) a governmental agency underpins FASBs authorityPublic Company Accounting Oversight Board (PCAOB)Private organization overseen by the SECRegulates audits and auditors of public companiesIn 2002

4、, took over the responsibility for setting auditing standards from the American Institute of Certified Public Accountants (AICPA)Financial statements “present fairly”Compliance with GAAP is the test for fair presentation4United States (contin)Unusual features of U.S. financial reportingNo federal la

5、w for preparing financial statements or having them audited, except for listed companiesLIFORules-based GAAP versus principles-based GAAPRules-basedMore specific requirementsMore detailed implementation guidanceMay result in more comparabilityMay foster “check-the-box” mentalityPrinciples-basedSets

6、forth broad objectives and fundamentalsRequires professional judgment for implementationMore flexibleMay result in more divergence in practice6MexicoOverviewAccounting is oriented toward fair presentation despite code law legal systemGeneral price-level accounting (inflation-adjusted financial state

7、ments) are a fundamental featureAccounting profession is well-developed and influential in setting accounting and auditing standardsAccounting regulation and enforcementCouncil for Research and Development of Financial Information Standards (CINIF)Independent public/private-sector partnership patter

8、ned after FASB and IASBDetermines Mexican GAAPAim align Mexican GAAP with IFRSMexican Institute of Public AccountingIssues auditing standards through its Auditing Standards and Procedures CommissionUnusual features of Mexican financial reportingFinancial statements are adjusted for inflation7JapanAc

9、counting regulation and enforcementTriangular legal systemCompany LawAdministered by Ministry of JusticeCreditor and shareholder protection the fundamental principleSecurities and Exchange LawFor publicly owned companiesProviding information for investment decision-making the main objectiveCorporate

10、 Income Tax LawExpenses must be booked to be claimed for tax purposesAccounting Standards Board of JapanPrivate-sector organizationResponsible for developing accounting standardsModeled after FASB and IASBConvergence with IFRS a major goalTook over from the Business Accounting Council (a government

11、agency) in 2001Japanese Institute of Certified Public AccountantsProvides guidance on conduct of auditBusiness Accounting Council Responsible for auditing standardsCertified Public Accountant and Auditing Oversight BoardGovernment agencyMonitors and oversees the auditing profession9Japan (contin)Unu

12、sual features of Japanese financial reportingForecasts of cash flows, capital investments, and production in statutory filings10ChinaOverviewEmbracing IFRS as part of structural market reformsMinistry of Finance responsible for all aspects of accounting and auditing 11China (contin)Accounting regula

13、tion and enforcementChinese Accounting Standards CommitteeUnder the Ministry of FinanceResponsible for developing accounting standardsChinese Institute of Certified Public AccountantsUnder the Ministry of FinanceResponsible for developing auditing standards and code of professional ethicsChina Secur

14、ities Regulatory CommissionUnder Ministry of FinanceRegulates Chinas two stock exchangesAccounting Standards for Business Enterprises (ASBE)Comprehensive framework for accounting and financial reportingIncludes detailed implementation guidance on accounting issuesLargely in line with IFRSFirst intro

15、duced in 1992 by Ministry of Finance and revised several times sinceUnusual features of Chinese financial reportingStartling changes since original ASBE in 199212IndiaOverviewBritish influence on accounting and auditing For example:True and fair viewIndependent accounting profession13India (contin)A

16、ccounting regulation and enforcementCompanies ActBroad framework for accounting and auditingInstitute of Chartered Accountants of IndiaSupervised by Ministry of Company Affairs, a government agencyRegulates profession of chartered accountancyResponsible for developing both accounting and auditing standardsAccounting Standards BoardIssues Indian Accounting StandardsAuditing and Assurance Standards BoardIssues Auditing and Assurance StandardsSecurit