Outsourcing Accounting and Finance

With respect to the quality, legality, and ethical character of financial and accounting records, reports, transactions, and other outputs, the situation becomes even more complicated for globally operating companies. Such companies must assure that the operations, records, data security, reports, and all other aspects of the financial and accounting functions conform to the standards that are applicable in (a) the home country of the company and (b) the host countries within which the company operates (Heffes, 2008). Such standards likely will include the following:

> International Financial Reporting Standards (IFRS), as these standards apply

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do business in the larger economies or the have their equity shares traded in those economies most frequently must provide financial data that are consistent with the national accounting standards of the economy where they want to do business. Frequently also, such companies must prepare reconciliations to do business in several major economies (Ford, 2008). Differences in the GAAP applied in different economies create potentially serious threats to companies that operate globally. Thus, the higher level of commonality of GAAP and general financial reporting practices the lower the accounting-related risk to global companies and investors. The IAS is the principal organization that is responsible for international accounting standards. It is through the IAS that proponents of the international acceptance of the body of IAS pursue the implementation of these standards globally (Pounder, 2007). A compelling issue confronting the financial and accounting community globally is the harmonization of international accounting standards. The globalization of business activity has generated an increasing need for standardization among countries with respect to accounting practices and standards. These needs are particular
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Some common words found in the essay are:
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Approximate Word count = 2065
Approximate Pages = 8 (250 words per page)

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