Recent orders
Accounting- Transnational Financial Reporting
Approaches to Transnational Financial Reporting
(Author’s name)
(Institutional Affiliation)
Abstract
Transnational Financial Reporting is a complex and multi-faceted process that demands professionalism and high levels of liability by accounting professionals. The preparation and submission of financial statements across borders requires an approach from the most apolitical nature of expertise to prevent problems that can occur owing to lack of accurate financial reporting. Accountants and those in management positions need to devise the proper ways through which they can relay financial information to all users with the minimal amount of prejudice. Agreeably, the development of one set of financial statements to be used worldwide is the best option to ensure proper transnational financial reporting.
Key Words: Transnational Financial Reporting, Financial Statements, Foreign Users
Introduction
Financial statements refer to the statements of account that organizations prepare illustrating the financial operations of the organization. Accordingly, accountants and the management team need to develop financial reporting systems to ensure that all company stakeholders are aware of the organization’s financial activities. For companies that have decided to globalize their business operations, a transnational approach to financial reporting is required to ensure that the presented financial statements are understood by all users irrespective of their locations (Wutsemann, 2004).
This paper highlights five approaches to Transnational Financial reporting, illustrating the advantages and disadvantages of each approach. The paper also justifies the preparation of one set of financial statements based on worldwide accepted accounting as the best approach to Transnational Financial reporting.
Approaches to Transnational Financial Reporting
Economists and the international accounting committee have identified five main approaches to transnational financial reporting to ensure accurate accounting of financial statements in organizations. The first approach to transnational financial reporting is the correspondence of similar sets of financial statements to all company stakeholders in their various locations (Schroeder et al., 2010). With this approach, company accountants prepare a single set of financial reports with one common language and currency. The only advantage of using this approach is the reduction of the workload regarding the submission of financial statements to company stakeholders. The uniformity of financial reporting reassures stakeholders that the organization is providing accurate financial information. However, since this information is to be relayed to other foreign nations, the probability of misinterpretation of the financial records is high hence lack of trust by foreign stakeholders. The second approach to transnational financial reporting is the preparation of financial statements followed by translation of these statements into the different languages of the foreign nations’ users (Schroeder et al., 2010). This approach is advantageous because it limits the occurrence of financial misapprehensions by translation of the statements to a language that the foreign stakeholders can understand. However the process of translation is exasperating especially since organizations are required to translate these statements into various foreign languages that they may not be familiar with. Translating financial statements into foreign languages and currencies is the third approach to transnational financial reporting (Schroeder et al., 2010). This approach to financial reporting is much similar to the second approach with the additional translation and conversion of financial figures into the respective foreign currencies. Just as the previous approach to transnational accounting, this approach fosters proper communication of organizational financial activities across all nations thud reducing the probability of conflict in the workplace. However, the translation of both the language and currency does not ensure that users understand some of the accounting principles used for financial reporting, thus posing a disadvantage to the process.
Organizations also have the option of preparing different sets of financial statements as an approach to transnational financial reporting. This approach demands that one set of financial statements be prepared using the principal country’s language, currency, and accounting principles, and the others using the language, currency, and accounting codes of the foreign countries (Schroeder et al., 2010). Agreeably, this is the most tedious approach to financial reporting and most accountants are discouraged by the bureaucracy of the processes involved. Otherwise, it is a good approach since it fosters organization and accurate reporting of financial statements. Conclusively, the fifth approach to transnational financial reporting involves the preparation a single set of financial statements based on worldwide-accredited accounting principles (Schroeder et al., 2010). This approach implies the harmonization of accounting standards and principles across all nations for easier comprehension of the presented financial statements.
From a closer examination of the advantages and disadvantages of the five approaches, it is evident that the latter is the most favorable approach to transnational financial reporting in organizations. This is because this approach allows the institution of a harmonized accounting system, which further promotes promulgation of financial reporting to organizational stakeholders. Synchronization of accounting standards and principles prevents misinterpretation of the financial records, thus reducing the possibility of organizational conflict in the various regions. Additionally, this approach also curbs the problems associated with regional, political and environmental influences. The development of one set of accounting standards allows stakeholders to understand certain anomalies in the statements that are influenced by such external factors. This approach further assists organizations in convincing their respective financial bodies on what is to be done regarding company stocks and financial operations.
References
Wustemann, J. (2004). Legalization of Transnational Accounting: The Case of International Financial reporting Standards. Retrieved from: http://wp.bwl.uni-mannheim.de/fileadmin/files/Forschung/LegalizationofTransnationalAccounting.pdf
How does Stress Impact Immune System
How does Stress Impact Immune System?
BIOL-1407References
Bovier, P., Chamot, E., & Perneger, T. (2004). Perceived Stress, Internal Resources, and Social Support as Determinants of Mental Health among Young Adults. Quality of Life Research,13(1), 161-170. Retrieved February 11, 2020, from www.jstor.org/stable/4038149McDade, T. (2005). The Ecologies of Human Immune Function. Annual Review of Anthropology, 34, 495-521. Retrieved February 11, 2020, from www.jstor.org/stable/25064896
Morey, J. N., Boggero, I. A., Scott, A. B., & Segerstrom, S. C. (2015, October 1). Current Directions in Stress and Human Immune Function. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4465119/Ohio State University. (2013, January 19). Loneliness, like chronic stress, taxes the immune system, researchers find. ScienceDaily. Retrieved February 9, 2020 from www.sciencedaily.com/releases/2013/01/130119185019.htm
Price, R., & Hooijberg, R. (1992). Organizational Exit Pressures and Role Stress: Impact on Mental Health. Journal of Organizational Behavior, 13(7), 641-651. Retrieved February 11, 2020, from www.jstor.org/stable/2488386Segerstrom, S. C., & Miller, G. E. (2004, July). Psychological stress and the human immune system: a meta-analytic study of 30 years of inquiry. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1361287/
Explain the ethical issues related to the supervisor
m4_assignment_0
Name
Instructor
Course
Date
Explain the ethical issues related to the supervisor
The supervisor went ahead with her medical leave leaving the student under no supervision. The office had no other licensed mental health professional who would supervise Jack when she left. Lily decided that Jack would be fine working his involvement without the supervisor until her return. It is unethical to leave a student under no supervision. Jack was to keep all records that Lily was to sign until when she came back from her leave. Lily could have come up with another option of how she would continue supervising Jack even when she was on leave. When Jack needed assistance from his supervisor, his attempts to reach Lilly bore no fruits. It is unethical for the supervisor not to be available when the student needs her. Even though she is on leave, Jack should be able to contact her incase anything comes up. As a student, Jack needed someone to constantly supervise him in what he was doing. It is unethical to leave a student to deal with clients under no supervision.
Explain the ethical issues related to the supervisee/student
It was unethical of Jack to accept new clients aside from the ones Lily had left him with when she went on leave. He ought to have followed the instructions left by Lily of not accepting new clients. Jack was confident in himself after his supervisor left for her leave. However, when it was time to deal with a new client he did not know how to handle the situation. He decided to search for information online on how he would deal with the new client. He went ahead and tried a few techniques he got online on the client. It was unethical of him to try out techniques he got online on the new client. He could have simply referred the patient to another counsellor when he found out that he was not able to deal with the case. It was also unethical of him to think that his supervisor was responsible for his actions. Even though Lily is his supervisor, she is not the one who tried the tests on the client. Therefore, Lily was not directly responsible of the decisions that Jack made.
Examine the influence of your own personal values as it relates to the issues presented in the case
It is wrong for a supervisor to leave a student under no supervision. A supervisor should always ensure that they offer supervision to the students under them regardless of the situation. A student relies on their supervisor for guidance on their practice. Therefore, a supervisor should always be around to offer this guidance to students. Students should always follow instructions given by instructors. There is a reason why an instructor tells a student to do something. A student should not go against what the instructor says. Students should also make sure that they ask for assistance in case they have a problem. They should not try out new techniques that they are not sure of without asking for a second opinion.
Compare the violations to the APA’s ethical standards and describe the similarities or differences in the ethical code
According to the APA ethical standards, supervisors are supposed to delegate to their supervisees only the responsibilities that they are expected to perform completely based on their training or experience. They are supposed to perform this with some level pf supervision. Supervisors are also expected to provide proper supervision to their supervisees and also take reasonable steps to see the supervisees carry out their duties responsibly and ethically (Campbell, 2010). The supervisor violated these APA ethical standards when she was not available to oversee Jack carry out his duties. The APA ethical standards are similar to the ACA Code of Ethics section F.4 that deals with supervisor responsibilities. According to F.4.b of the ACA Code of ethics, supervisors are supposed to establish procedures for contacting them if they are absent (ACA code of ethics, 2005). Supervisors are also supposed to make their supervisees aware of the ethical standards and legal responsibilities required of them in their practice. Supervisors are supposed to incorporate in their supervision the principle of participation and informed consent.
Imagine you are a member of the ACA ethics committee. Describe the recommendations you have for the supervisor
The supervisor should ensure that she is present incase a supervisee needs assistance in the course of their practice. The supervisor should also make sure that she establishes communication with the supervisee in case she is not around. The supervisor should also delegate duties that the supervisee can handle according to the level of training and experience.
Describe the recommendations you have for the supervisee/student
A student should follow the supervisor’s instructions to the latter. They should not try out anything that they have not been instructed by their supervisor. In case a problem comes up, a supervisee should contact their supervisor for assistance. A supervisee should not try out any technique they have never used before. They should consult their supervisors before using any new technique on a client.
References
ACA code of ethics. (2005). Alexandria, Va.: American Counseling Association.
Campbell, L. (2010). APA ethics code commentary and case illustrations. Washington, DC: American Psychological Association.