INTERNATIONAL ACCOUNTING
‫ عوني الرواشدة‬.‫د‬
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Chapter 1: Introduction to
International Accounting
 Learning Objectives
 Definition of International Accounting.
 The need to International Accounting
 Objectives and characteristics of
International Accounting
‫ عوني الرواشدة‬.‫د‬
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L.O 1
Definition of International Accounting
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(1) Definition of
International Accounting
 International Accounting can be defined
through the international standards
perspective that should be applied by the
deferent companies.
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(1) Definition of
International Accounting
 Also, international accounting can be viewed
through comparative international
perspective , as all accounting methods ,
principles and standards would be classified in
the different countries to be useful for
different users.
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(1) Definition of
International Accounting
 In addition, international accounting could be
defined through the international accounting
problems that arise from the spread of
multinational companies such as translation
and exchange rate problems.
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(1) Definition of
International Accounting
International accounting can be defined as:
Branch of accounting cares about
international accounting practices that
arise as a result of the practice of
international activities by various
multinational companies.
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L.O 2
The need to International Accounting
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(2) The need to International
Accounting
There were several factors that contribute to
the emergence of international accounting.
These factors are :
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(2) The need to International
Accounting
Modern
international
economy
properties
Increased interest in
foreign direct
investment
The growth of
multinational
companies
Differing systems
and methods of
accounting
practice
International
monetary system
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(2) The need to International
Accounting
The importance of international
accounting can be dervied
through the following points:
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(2) The need to International
Accounting
The accounting principles and standards
that have been used to prepare the
published financial statements
The need to know how to make the
necessary adjustments to published
financial statements to become valid for
comparison by the decision-makers
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(2) The need to International
Accounting
Identify the information to be disclosed in
those statements
Recognise the auditing standards to be
relied upon to review those statements
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(2) The need to International
Accounting
The need to account for transactions that
be done by foreign currencies
Determine the tax effects resulted from
international activities
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L.O 3
Objectives and characteristics of International
Accounting
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(3) Objectives and
characteristics of
International Accounting
Objectives of International
Accounting
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(3) Objectives and
characteristics of
International Accounting
Regulation of accounting and reporting
practices that are at an international
level
Examine the role of accounting in the
economies of international companies
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(3) Objectives and
characteristics of
International Accounting
Make comparisons between different
accounting systems for countries
Understanding of international financial
statements so that it can make them
more comparable
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(3) Objectives and
characteristics of
International Accounting
Find the suitable solutions for
accounting problems resulting from
international practice
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(3) Objectives and
characteristics of
International Accounting
Develop a comprehensive framework for
reviewing the international financial
statements
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(3) Objectives and
characteristics of
International Accounting
The characteristics of
International Accounting
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(3) Objectives and
characteristics of
International Accounting
The characteristics of International
Accounting could be recognised
through the problems of international
accounting
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(3) Objectives and
characteristics of
International Accounting
Currencies exchange rate problem
This problem arise due to the differences in
the prices of currencies between the countries
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(3) Objectives and
characteristics of
International Accounting
Preparation of consolidated financial
statements
This problem arise when there is consolidated
financial statements between multinational
group of companies.
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(3) Objectives and
characteristics of
International Accounting
The differences between inflation rates
between countries
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‫‪(3) Objectives and‬‬
‫‪characteristics of‬‬
‫‪International Accounting‬‬
‫األثار الضريبية الناتجة عن المعامالت‬
‫الدولية‬
‫‪ ‬تنشأ هذه المشكلة كنتيجة إلختالف األنظمة‬
‫الضريبية بين الدول‪.‬‬
‫‪ ‬حيث تقوم الشركة األم بقياس وعائها الضريبي وفقا‬
‫للنظم والقوانين الضريبية المعمول بها في دولتها ‪،‬‬
‫والتي تختلف حتما مع النظم والقوانين التي تعمل‬
‫بها الشركات التابعة أو الفروع في دولها‪.‬‬
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‫‪23/09/2021‬‬
‫د‪ .‬عوني الرواشدة‬
(3) Objectives and
characteristics of
International Accounting
Tax effects of international transactions
This problems arise due to the differences in
the tax systems between the countries.
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