Accounting Comparative

Category: Accounting, Tax
Last Updated: 10 Aug 2020
Pages: 3 Views: 35

Studying the practice of International Financial Reporting Standards (IFRS) must give consideration on how practices and compliance vary between different countries in the world given that even within the country itself, the practice has variations.  IFRS aimed to achieve high quality of financial analysis and reporting and its set of standard couldn’t be doubted to be beneficial in seeking global participation on stable platform of finance.

Business communications in Malaysia, for example, remained to have their primitive way of covering information, reporting financial matters and framework for studying the activities in the economy. With this, Malaysia had been through some conflicts as they developed their accounting procedures and apparently, the situation requires better regulation by the practitioners in the market and by those involved in accountancy (Tsamenyi, M. and Uddin, S. 2009.p. 162).

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As per Mathew Tsamenyi (2010), Social and environmental accounting (SEA) in Malaysia shows the drive to increase awareness and concern for businesses but the response is slow reflecting the level of responsibility disclosures both socially and environmentally.

In IFRS, disclosure required considerations of financial effects on affected business combination, periodical adjustments and periodical changes. The earlier these informations will be available will be relatively better ( International Accounting Standards Committee Foundation, 2008.p.498)

Accounting in Colombia doesn’t differ much compared to Malaysia’s procedures. Practitioners are also in their drive for improving their national way of objectifying economic flow. In their corporate world, their system of taxation, given that it has no theoretical precision, provided them retained income tending not to be administratively feasible and allowed shareholders system for crediting simple and accurate (MC Lure CE, et al. 1990. 328-329).

IFRS has flexibility in taxation when it comes to which will be the basis. Variables like deductions, deferred tax assets, and estimation of deduction in the future serves as considerations for periodical measurement (International Accounting Standards Committee Foundation, 2008. p.1177).

On the other hand, Austria, being highly linked and influenced by Germany, has decades-old code and appropriate laws for accounting regulations. Financial reporting Acts created then passed in 1990 foresaw development in the accounting framework of the country. Austria had attempted to have their accounting system as dynamic as their neighboring countries’ system with the adoption of their directives. One implication can be the possibility that they’re going to have straight line depreciation with their non-revaluation of allowances on tax and fixed assets (Lawrence, S. 1996. p.  102-103)

Compared to IFRS, revaluation and cost accounting became able to provide information that is more relevant to fixed assets having it relative to net assets that will decrease with the revaluation net of tax effect (Severstal. 2008).

It is important to commend the development of accounting procedures in some Asian, European and South American nations that also served as the root or basis for the configuration of IFRS procedures especially when it became complicated to solve multinational problems emerged and made worse because of inability to make easy comparison on financial statements across countries.

The success of IFRS in implementation should complement with the way it was applied and interpreted in different place. It must remain flexible for any changes, varieties and changes of market components given that market has a terrible pace of evolution in structure. This should respond appropriately to situations that required a well-defined and well-designed system of reporting.


Tsamenyi, M. and Uddin, S. 2009. Accounting in Emerging Economies. Vol 9.  UK:Emerald     Group Publishing

MC Lure CE, et al. 1990. The taxation of Income from Business and Capital in Colombia. USA: Duke UP

International Accounting Standards Committee Foundation, 2008. IFRS. London, UK.: IASCF

Lawrence, S. 1996.International Accounting. China: Thompson Publishing Inc.

Severstal. 2008. Fixed Assets: Change in IFRS Accounting Policy. Retrieved May 5, 2010          from

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Accounting Comparative. (2018, Jun 20). Retrieved from

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