International Accounting: Comaprison
Acknowledgement
I would like to pay my sincere thanks to, University of Delhi, South Campus for endowing me with the precious insights needed for working out this Project. He has been very instrumental in communicating the core of this project study and thus without his direction, the very inception of this work would not have been possible.
Q1. Whether a country’s capital market is debt –oriented or equity oriented has a significant impact on the financial reporting that develops in the country, both at the cosmetic and at the substantive level. Choose a equity oriented country and a debt oriented country, and obtain two corporate annual reports from each. Comment on the similarities and the differences of the reports
National differences in disclosure are driven largely by differences in corporate government and finance. In US, UK and other Anglo-American countries, equity markets have provided most corporate financing and have become developed. In these markets, ownership tends to be spread among many shareholders, and investor protection is emphasised. Institutional investors play a growing role in these countries, demanding financial returns and increased shareholder value. Public disclosure is highly developed in response to companies accountability to the public.
In many other countries i.e. France, Germany, Japan and emerging market countries shareholding remains highly concentrated and Banks traditionally have been main source of corporate financing. Structures are in place to protect incumbent management. Banks and other insiders provide discipline. These banks, insiders and others are closely informed about the company’s financial position and its activities. Public disclosures is less developed in these markets and large differences in the amount of information given to large shareholders and creditors vis-a-vis the public may be permitted.
As investors around the world demand more detailed and timely information, voluntary disclosures
I would like to pay my sincere thanks to, University of Delhi, South Campus for endowing me with the precious insights needed for working out this Project. He has been very instrumental in communicating the core of this project study and thus without his direction, the very inception of this work would not have been possible.
Q1. Whether a country’s capital market is debt –oriented or equity oriented has a significant impact on the financial reporting that develops in the country, both at the cosmetic and at the substantive level. Choose a equity oriented country and a debt oriented country, and obtain two corporate annual reports from each. Comment on the similarities and the differences of the reports
National differences in disclosure are driven largely by differences in corporate government and finance. In US, UK and other Anglo-American countries, equity markets have provided most corporate financing and have become developed. In these markets, ownership tends to be spread among many shareholders, and investor protection is emphasised. Institutional investors play a growing role in these countries, demanding financial returns and increased shareholder value. Public disclosure is highly developed in response to companies accountability to the public.
In many other countries i.e. France, Germany, Japan and emerging market countries shareholding remains highly concentrated and Banks traditionally have been main source of corporate financing. Structures are in place to protect incumbent management. Banks and other insiders provide discipline. These banks, insiders and others are closely informed about the company’s financial position and its activities. Public disclosures is less developed in these markets and large differences in the amount of information given to large shareholders and creditors vis-a-vis the public may be permitted.
As investors around the world demand more detailed and timely information, voluntary disclosures