Accounting Reporting Criteria Paper

Essay by gigi5600University, Bachelor'sA, November 2008

download word file, 3 pages 5.0

This paper will compare and contrast the accounting reporting criteria such as the regulatory environment, issues with foreign currency, and accounting reporting practices within U.S. Company Hewlett Packard and the Swiss financial services firm UBS.

This paper will also conduct research based the global business environment viewed from various dimensions. These dimensions are listed above (regulatory environment, issues with foreign currency, differences in and GAAP). This paper will also cover the regulatory environment, the business risk dealing with foreign currency and the differences between U.S. GAAP and Global GAAP.

Within the context of a global business environment, regulatory implications involve two major aspects. One is the rules-making body called the International Accounting Standards Board (IASB). The second major aspect involves the legal component. There are many differences between U.S. GAAP (FASB) and Global GAAP (IASB). Local government laws will vary by the geopolitical and economic frameworks of each country.

Differences in and GAAPAccounting and financial reporting are an important element of organizations worldwide. Accounting is a process used by global organizations to process, identify and communicate economic information. Companies worldwide utilize financial statements to provide an overview of its business financial position. The following research compares and contrasts the accounting reporting criteria practices of U.S. technology services provider Hewlett Packard, and Swiss based financial services firm UBS.

HP and UBS both follow specific accounting practices when recording its financial information. While the organizations share many similarities in its reporting there are also many differences. HP reports its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make judgments, assumptions, and estimates which affect the reported amounts of assets, liabilities, net revenue and expenses, and the disclosure of assets and liabilities. These principles differ from UBS as its financial statements are prepared...