Prof.
REIDY HERRERA
Dpto. Socio-Humanístico/Sección de inglés
Reading
# 3 /unit:3 /Comparison-Contrast
PERIODO: I-2018
Maturín,09-07-2018
1.- In today's world we do not
find it surprising
to discover a British bank in Atlanta, Coca-Cola in Paris and French
airplanes in Zaire. German auto parts are assembled in Spain and sold
in the United States. Japan buys oil Saudi Arabia and sell cameras in
Italy. Soviet livestock eat American grain, and the British sip tea
from Sri Lanka and China. Business has become truly international,
but accounting,
often described as the
language of business,
does not cross borders so easily. Accounting principles and reporting
practices differ from country to country, and international decisions
making more difficult by the
lack
of a common communication
system.
But
since business is practiced at an international level, accounting
must find a way to provide its services at
that level.
2.-The
problem
is that accounting reflects
the national economic
and social
environment
in which it is practiced, and this environment
is not the
same in
Bankok as in Boston. Some econimics, for example, are mainly
agricultural. Others are
based
on manufacturing, trade, or service industry. Still others export
natural resources, such as oil or gold, while a few derive
most of their income
from tourism. Accounting techniques, and methods of foreign currency
translation have a different orientation,
emphasis,
and degree
of refinement
in these different economics.
3.-Other
accounting differences stem
from
the
various legal or political systems of nations. In central controlled
economics,for instance, the state owns
all
or most of the properties.
It makes little sense to prescribe full disclosure of accounting
procedures
to protect investors
when no private ownership
of property exists.
Some of these countries satndarize their accounting methods and
incorporate them into law. But in most market-oriented economics, the
development of accounting principles and reporting practices is left
mainly to the private sector. On the contrary, where uniformity
exists, it occurs more by general agreement or concensus of
interested parties than by governamental decree. In countries where
business firms are predominately family owned, disclosure practices
usually are less complete than in countries where large, publicly
held corporations dominate. The requirement in many countries that
the financial statements must conform to the tax return contribute to
diversity in accounting practices among countries.
4-The
degree
of development
of
the accounting profession
and the general level of education
of
a country also influence
accounting practices
and procedures.
Nations that lack
a well-organized accounting profession may
adopt
almost wholesales the accounting methods of other countries.
Commonwealth
countries, for example, tend
to follow British accounting standards; the former French colonies of
Africa use
French systems; Bermudas follows
Canadian pronouncements;
and the influence
of the United States is widespread.
At
the same time, levels
of expertise vary.
In countries that have little knowledge or understanding of
statistics, nothing is
gained
by advocating statistical accounting and auditing techniques.
Accounting systems designed for electronic data processing are not
helpful in countries where few or no business use computers.
5.-Even
in advanced countries, genuine differences of opinion exist regarding
accounting theory and appropiate accounting methods.
American standards, for example, require the periodic amortization
of goodwill
to
expense, but British and Dutch standards do
not.
The
lack of agreement on the objectives
of financial statements and
lack of any effort in most countries to articulate objectives also
contribute to diversity. Accounting
methods also differ within nations.
Most countries, including the United States, permit
several depreciations
methods and two or more inventory
costing methods.
READING ANALYSIS
.-Answer
the following questionaire.
.-Give
an explaination or examples to support your answers if
necessary.(use only
Spanish).
1.- Why do accounting principles and practices differ among
nations ? (explain)
2.- Why is accounting called the language of business? (explain)
3.- Why does accounting not cross borders easily like business
does?
4.- Describe the geographical, political and economic differences
that contribute to diversity in accounting practices among nations.
5.-What happens to the accounting principles and practices in
those countries where their economics are centrally controlled or
market-oriented ? (explain briefly).
6.- What happens to the principles and practices of accounting in
countries where business are predominately family owned?
7.- Taking into consideration our country, explain quickly the
political differences apply to the economy and the currency
translation system.
8.- HOW do the degree of development of the accounting profession
and the level of education of a country affect accounting practices
and procedures ? (give examples)
9.-
What do those nations that lack a well-organized accounting
profession to practice accounting ? (explain)
10.-
Which solution will you suggest to solve the differences about the
accounting principles and practices among nations? (
use your own words to explain it )
Un semántico es la representación visual de una palabra o , rodeada de palabras similares. El propósito de un mapa semántico es permitirle a los estudiantes explorar las relaciones entre las palabras relacionadas y los conceptos de modo que puedan verse en vez de conceptualizarse.
