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Accounting is a social science. It reflects the cultural differences of the countries in which it is developed. The reporting standards in one country may be very different than those used in another country. These differences thwart communication and limit trade among international business people. As globalization progresses, the need for standardization intensifies.
Required:
a. Comment on the history and development of a global GAAP.
b. Identify the similarities and differences in the organizational structure of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). Speculate as to why there may be structural differences between the two boards.
c. Are the differences between the FASB and the IASB limited to the variation in structure? Explain your answer with a specific example.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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