Published on: 23 Jul 2012
Anyone that works within the international arena of accounting will be aware of the discussions over the years about the convergence between IFRS (International Financial Reporting Standards) and US GAAP (US Generally Accepted Accounting Principles).
Whilst there are similarities between the two sets of accounting rules, importantly there are also differences.
The majority of the G20 (in effect, the 20 largest economies in the world) already use IFRS but over in America they are pretty attached to the US GAAP rules.
The IASB (International Accounting Standards Board) has been working closely over the years with its US counterpart, the FASB (Financial Accounting Standards Board) to minimise the difference between the two sets of rules.
Following an announcement last week by the US Securities and Exchange Commission which failed to include a clear action plan about adopting international accounting rules, it looks like the IFRS supporters may be losing a bit of patience.
Michael Prada, the chairman of the trustees that oversee the IASB was critical of this lack of an action plan and was quoted as saying:
“While recognising the right of the SEC to determine the method and timing for incorporation of IFRSs in the United States, we regret that the staff report is not accompanied by a recommended action plan for the SEC. Given the achievements of the convergence programme inspired by repeated calls of the G20 for global accounting standards, a clear action plan would be welcome.
For the benefit of both US and international stakeholders, the Trustees look forward to the SEC resolving the continued uncertainty regarding the US’s commitment to global accounting standards.”
Or to put it in less diplomatic wording, “for goodness sake can you please get on with it”.
In summary it looks like there’s not going to be true global accounting standards in the immediate future.
One thing for sure though is that IFRSs seemed to be going from strength to strength. In the words of Hans Hoogervorst, the Chairman of the IASB:
“IFRSs have already achieved critical mass as international standards and with more than two thirds of the G20 now on board, the momentum behind them becoming global accounting standards is irreversible. We are confident in our mission to achieve a single set of high quality global accounting standards and we continue to work to serve investors and other users of IFRSs across the world.”
So all that hard work in learning the various IFRSs in your professional exams looks like it will be worth it.
Published on: 20 Jul 2012
ACCA and CIMA are both great professional qualifications which are respected and admired around the world. I came across a surprising fact recently though which I bet the majority of ACCA and CIMA members and students never knew.
Nissan Motor Co. Ltd is one of the world’s leading car manufacturers and a couple of months ago over in Japan they launched a new car.
Quoting some of Nissan’s promotional material about the car, some of the key features include:
– Styling expressing a premium class image
– Hybrid system with optimally balanced driving and environmental performance
– Spacious and comfortable rear seats
As the picture shows it’s a handsome looking car and I’d personally be more than happy to drive it around.
What about Helen Brand (the Chief Executive of ACCA) or Charles Tilley (the Chief Executive of CIMA) though?
Do you think they would be happy to be seen driving the car?
Well, my guess is that one of them will be happier than the other as the name of the new Nissan car is none other than the Nissan Cima.
Yes, that’s right – one of the leading car manufacturers in the world has just launched the Cima car.
Nissan has not produced a car aimed at accountants in Japan but instead the Cima car name is derived from the Spanish for “summit”.
It raises an interesting question though – does this mean that there’s no need to study for your exams to become a CIMA member as all you’ll need to do is to buy a Cima car and then you can add Cima (driver) to your CV?
Oh, and one final thing but I don’t think there’s any truth to the rumours that ACCA are currently in discussions with Toyota to produce a new car called the Toyota Acca.
Published on: 18 Jul 2012
Adidas and Puma are two of the top sportswear brands in the world.
Interestingly though they were actually started by two brothers.
In the 1920s in Germany, brothers Adolf and Rudolf Dassler set up a shoe making business but soon fell out with each other and went their separate ways.
Adolf (Adi) Dassler kept the original company but renamed it Adidas (named after his first name and part of his surname) whilst Rudolf left and set up Puma.
Since the split there has been intense rivalry between the two companies and over the years there have been some famous examples of both of them trying to outdo the other in terms of publicity.
For example, back in the 1970s at the start of the 1970 World Cup final, arguably the world’s best ever footballer famously stopped the referee with a last minute request to tie his shoelaces just before the kickoff. The result was that millions of TV viewers saw Pele tie up his Puma football boots.
An early example of “guerrilla marketing” and priceless publicity for Puma.
More recently there was some rather unusual publicity for Adidas.
At the recent Wimbledon tennis Championship in London, the unlucky losing finalist Andy Murray had a few problems with his shorts.
Adidas pay a significant sum to Murray to sponsor him and in return he wears Adidas tennis gear, including Adidas shorts.
In his Wimbledon match against fellow Adidas sponsored tennis player Marcos Baghdatis, he lost two points after a tennis ball fell out of his Adidas shorts mid-point (Murray puts one tennis ball in his pocket whilst taking his first serve in case he needs to take a second serve).
Luckily for Murray he went on to win his match against Baghdatis but for Adidas it could have been an embarrassing problem had he lost because of the design of their shorts.
Adidas reportedly said that the error in the depth of the pockets was due to the shorts being handmade.
There’s a saying that there’s no such thing as bad publicity and to be honest this has probably turned out ok for Adidas.
More people are probably now aware that Adidas sponsor Murray and they will no doubt change the design of the pockets so there’s no danger of the public seeing one of Murray’s balls popping out of his shorts in the future.
Published on: 04 Jul 2012
How would you feel if you were doing exactly the same job as the person next to you but he or she was being paid more than you?
My guess is that you wouldn’t be feeling too happy as the principles of fairness and equality would clearly be broken.
It also raises the discussion of discrimination if one person doing the same job as another is paid less.
The video below however shows that it’s not just humans who get upset if someone else is paid more for doing the same job.
The video shows a researcher getting some Capuchin monkeys to each undertake the same job (handing the researcher a rock) but the rewards given are different. One of the monkeys gets a slice of cucumber whilst the other gets a tasty grape.
Now, how would you feel if your colleague was given a tasty grape whilst you were given the cucumber?
Well, the monkey wasn’t too happy…
Published on: 03 Jul 2012
Has your computer ever frozen on you? Of course it has but don’t worry, it even happens to the experts.
We’ve all heard of Microsoft and their arch rival Apple.
Although they are often classified together, up until this week there was a major difference between them.
Apple is mainly a hardware company (think iPods, iPads and Mac computers) whilst Microsoft is a software company (think Windows operating systems and Microsoft office software).
It may have come as a bit of a surprise therefore that last week saw the announcement that Microsoft would soon be selling their own tablet computers. At a launch in LA, Microsoft showed their upcoming tablet which goes by the name of mPad (actually, I made that last bit up about the name mPad as it is in fact called “Surface” but personally I prefer mPad).
As a strategic business move this is quite risky. Using their software in their own hardware will have obvious advantages in terms of the potential to win some of the market share from Apple but do they risk upsetting some of their major customers?
OEM’s (Original Equipment Manufacturers) such as Hewlett-Packard and Acer use the Windows operating system in their PCs.
Putting it another way, companies like Hewlett-Packard and Acer have a supplier (Microsoft) who has now suddenly become a competitor.
Are they going to be happy paying a supplier who is now directly competing with them?
Maybe the question is irrelevant though as after all, what other operating system could they use?
The other interesting thing was that the launch was very “Apple like” with the presentation being very slick.
Well, I say very slick but there was one moment when Microsoft boss Steve Sinofsky had just explained to the audience how users could “browse smoothly” when you guessed it, the device froze.
The video below shows Mr Sinofsky in action when the new tablet froze at the opening presentation.