1. International Accounting International Accounting A User Perspective by Shahrokh M. Saudagaran

2. Chapter 1 FINANCIAL REPORTING IN THE GLOBAL ARENA

3. Learning Objectives 1. Identify the main environmental variables that shape accounting 2. Recognize the differing role of accounting in countries

4. Learning Objectives 3. Demonstrate the economic effects of accounting diversity 4. Appreciate the benefits of classifying countries into accounting cluster

5. Chapter Outline I. Introduction II. Interaction between Accounting and its Environment (1) Nature of Capital Markets

6. II. Interaction between Accounting and its Environment (2) Type of Reporting Regime (3) Type of Business Entities (4) Type of Legal System

7. II. Interaction between Accounting and its Environment (5) Level of Enforcement of Regulation (6) Level of Inflation (7) Political and Economic Ties

8. II. Interaction between Accounting and its Environment (8) Status of the Accounting Profession (9) Existence of a Conceptual Framework

9. II. Interaction between Accounting and its Environment (10) Quality of Accounting Education

10. III. Diverse Roles of Accounting in Countries (1) Policy Choices in Accounting IV. Effects of Diversity on Capital Markets

11. V. Classifications of Financial Accounting and Reporting Systems (1) Review of Selected Classification Studies

12. VI. Major Challenges Facing Accounting Globally (1) Global Harmonization (2) Financial Reporting in Emerging Economies

13. VI. Major Challenges Facing Accounting Globally (3)Social and Environmental Reporting (4) Financial Reporting in the High Technology Era