Financial challenge

There are many more challenges ahead to ask for convergence of NAS to IFRS and certain issues are required to adress , inter alia , conflicting legal and regulatory requirements related to financial statements , the technical prepardnessof industry and accounting proffesionals , economic environment and so on ........

its about finance

Financial Market

any economic policy has large distributive consequences , and policy makers need to be attentive to those consequences . it is not necessariliy the case that what is good for financial markets is good for the economy .but inevitably , the international financial institutions , closely linked to the financial markets (through governace linked to finance ministers and central bank governors)will reflect interests and perspectives of those financial markets........

its about finance.

Us Finance

united states , the champion of capialism and free market economy , had to resort to nationalization or stare ownership (rferred to as srare intervention),a socialist philosophy by any accont , of private owned institution using the tax prayers money . the hed of the imf , dominique strauss-khan , rold a whasington meeting thar :"intensifying solvency concerns about a number of the largest us-based and european financial institutions have pushe rhe global financial system to the brink of systemic melt down"

its about finance

financial European Union

the europian union , which is the world second largest capital market and economic power after the united states , in 1999published financial service action plan (fsap)to acheive a single capital market and developed a five year action plan ended in 2004 . in june 2002,the eu published "EUfinancial reporting strategy:the way forwarded"whis proposed that all the listed companies prepair their accounts in accordance with ias, the single ser of accounting standards latest by 2005........

its about finance

financial frame works

each country has its own regulatory frame work besides generally accepted acconting practices for financial reporting . the use of different accounting frame works in different countries and the inconsistent treatment and presentation of the same economic transactions creates confussion for the users of the financial statements.therefore increasing complexity of buisness transactions and globalization of capital markets need for a single set of quality accounting standards for financial reporting tht it can provides trust to investors in financial as well as non financial information.......

financial system.

in the past the global financial system often worked to the disadvantage of developing countries.banks in developed countries , for instance,were encouraged to lend short term to developing contries ;while this provided greater liquidity to the former , it led to greater instability in the latter . pro-cyclical monetary and fiscal policies were often foisted on developing countries,while developed contries followed contercyclical policies..........

political finance.

the question is why banks are allowed to operate with such a low capitalization when so many investors are willing to buy their stocks?actually this levarage mecanisms are made as a part of politics to make some targeted people rich or rich people to richer one . in such banking system one can have deposit of $1million US Dollar by putting $200,000 only as equity and gets the oppurtunityto divert such money in the way whatever the banking people think suitable and benificial to them . actually to make the system accountable strong supervision is necessary......