International Finance: Application of Accounting Standards Analysis

This report delves into the realm of international finance, examining its core concepts and the pivotal role of International Accounting Standards (IAS). It elucidates the objectives of these standards in communicating financial positions, allocating resources, and enhancing accountability. The report highlights relevant IAS standards, including IAS 2 for inventory valuation and IAS 16 for non-current assets. It also explores the key features of international finance, such as foreign exchange exposure and political risks, while identifying major financial institutions like the World Bank. The report then applies these principles to a business organization, Woolworths, emphasizing the benefits of adopting IAS for harmonized financial reporting and investor understanding. Finally, it references key sources to support the analysis.

INTERNATIONAL
FINANCE

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CONSULTANTS 2
INTERNATIONAL FINANCE
• The international finance market helps companies and
organisation in getting access to various capital market
in and across the globe enabling and allowing the
country to borrow money during tough time and lend
money during good times.
• International finances gives an overall boost to the
domestic investment and growth of capital via the
increased import activity that is done.

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CONSULTANTS 3
OBJECTIVES OF INTERNATIONAL ACCOUNTING
STANDARDS
• The role of accounting standard is to communicate the financial position of
an organisation to the various stakeholders of the company indicating the
financing performance of the company.
• Catalysing the corporate report presentation in a more cohesive and efficient
way thereby incorporating various accounting report standards for better
communicating a range of various factors that would be materially affecting
the ability and value creation of an organisation on a timely basis
(International Accounting Standards 2019).
• Allocation of Resources can be done in a better informed ways by the
financial providers which would be helping better creation of wealth for short
and medium term (Integrated Reporting 2019).
• Enhancement of accountability and Stewardship along with the broad base of
economic social and financial relationship thereby promoting the
interrelationship and understanding the interdependencies between them.

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CONSULTANTS 4
OBJECTIVES OF INTERNATIONAL ACCOUNTING
STANDARDS
• The role of accounting standard is to communicate the financial position of
an organisation to the various stakeholders of the company indicating the
financing performance of the company.
• Catalysing the corporate report presentation in a more cohesive and efficient
way thereby incorporating various accounting report standards for better
communicating a range of various factors that would be materially affecting
the ability and value creation of an organisation on a timely basis
(International Accounting Standards 2019).
• Allocation of Resources can be done in a better informed ways by the
financial providers which would be helping better creation of wealth for short
and medium term (Integrated Reporting 2019).
• Enhancement of accountability and Stewardship along with the broad base of
economic social and financial relationship thereby promoting the
interrelationship and understanding the interdependencies between them.

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CONSULTANTS 5
RELEVANT ACCOUNTING STANDARDS
• Inventory Valuation: The IAS 2 Inventories has relevant requirements and information that can
be used for the purpose of valuation of inventory.
• Non-Current Assets: IAS 16 sets out the requirement of valuation of the non-current assets of
the company such as property, plants and equipment.
• Accounting Concepts and Conventions: IAS 8 States about the Accounting Concepts, Policies
and changes in the accounting estimates and errors that is applied for selecting or applying the
relevant accounting policies.

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CONSULTANTS 6
FEATURES OF INTERNATIONAL FINANCE
• International Finance has its own set of characteristics when compared and contrasted to
financial management the key features of international finance are Foreign Exchange Exposure
that is associated with global and international operations of the company.
• Encountering political changes or political risks during the international finance investment can
be the key risks that can be faced by companies.
• Companies and Organisations tend to get benefit from the wide range of international and global
finance operations that a company would be in the field of overall growth and development of
the company (Bostonapartments.com 2019).
• The major financial institutions that are involved in International Finance Environment are
World Bank, International Monetary Fund, International Bank for Reconstruction and
Development and International Finance Corporation.

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CONSULTANTS 7
BUSINESS ORGANISATION
• The selected organisation for the purpose of evaluating the application of the International
Accounting Standard is the Woolworth’s company
• The company follows the Australian Accounting Standard.
• If the company follows the IAS Accounting Standards it would be able to better informed about
the various accounting reforms policy and provide a harmonised financial statement allowing
investors to better understand and compare the financial report of the company.

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CONSULTANTS 8
REFERENCES
• Bostonapartments.com. 2019. Functions of International Finance -Information about fuctions of
international finance -"International finance corporate". [online] Available at:
https://www.bostonapartments.com/loans/functions-of-international-finance.html [Accessed 25
Aug. 2019].
• Iasplus.com. 2019. IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors.
[online] Available at: https://www.iasplus.com/en/standards/ias/ias8 [Accessed 25 Aug. 2019].
• Iasplus.com. 2019. IAS 16 — Property, Plant and Equipment. [online] Available at:
https://www.iasplus.com/en/standards/ias/ias16 [Accessed 25 Aug. 2019].
• Iasplus.com. 2019. IAS 2 — Inventories. [online] Available at:
https://www.iasplus.com/en/standards/ias/ias2 [Accessed 25 Aug. 2019].
• Integrated Reporting 2019. Integratedreporting.org. Retrieved 25 August 2019, from
http://integratedreporting.org/wp-content/uploads/2012/11/23.11.12-Prototype-Final.pdf
• International Accounting Standards. 2019. Saylordotorg.github.io. Retrieved 25 August 2019,
from https://saylordotorg.github.io/text_international-business/s19-01-international-accounting-
stand.html

THANK YOU
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CONSULTANTS
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