International Accounting - Report of a major italian company Essay

International Accounting - taradiddle of a major italian company - Essay ExampleBut now that IAS 38 has been concur with finality to be the new compulsory accounting procedure, then we have to follow suit.According to the European Council of Finance Ministers, on December 13, 2001 agreed to a general orientation on a proposed regularization that would require all EU listed companies, including banks and insurance companies, to prepare their consolidated financial statements using IAS. ECOFIN agreed that this compulsion should go into effect in 2005 at the latest. However, companies that currently apply US GAAP as their uncomplicated financial reporting standards would not have to apply IAS until 2007. The 2007 extended deadline for companies using US GAAP was inserted at the request of the German government. EU Internal Market Commissioner Frits Bolkestein saidThe International Accounting Standards Regulation leave introduce a new era of transparency and put an end to the curr ent Tower of Babel in financial reporting. It will help European firms to compete on equal terms when raising chapiter on world markets and allow investors and other stakeholders to compare companies performance against a common standard. However, I sorrow the Ministers decision to grant some big companies the right to apply US GAAP standards until 2007, two age after the Lisbon deadline for completing the Internal Market in financial services. (http//www.iasplus.com/pastnews/2001dec.htm)Comment The main intent that all countries are rushed to apply these international accounting standards is to have a comment yard measure to compare one company in the European Union with some other country selling the equal products and services. If we call an item goodwill in England, then in the like situation in another far away place like Australia or United States, we can confidently call the same item bought as goodwill.Accounting is defined as the language of business.