Evolution Of International Accounting Essay

India is one of the emerging BRIC countries, referring to a group of four large, developing countries including Brazil, Russia, India and China. The four BRIC countries are distinguished from other promising, emerging markets by their demographic and economic potential to rank among the world’s largest and most influential economies in the 21st century. These four BRIC countries comprise of more than 2.8 billion people or 40 percent of the world’s population, cover more than a quarter of the world’s land area over three continents, account for more than 25 percent of global GDP, and register a rapid economic growth of 7% to 10%. In early 2003, Goldman Sachs forecasted that China and India would become the first and third largest economies

Countries, regions and governments are more interdependent, and even SME’s work across borders and geographies in the new millennia of globalization. The evolution of international accounting in global perspective includes accounting principles and reporting practices in different countries and their classification, patterns of accounting development, international and regional harmonization, foreign currency translation, foreign exchange risk, international comparisons of consolidation accounting and inflation accounting, accounting in developing countries, accounting in communist countries and performance evaluation of foreign

These variation put the multinational corporations in a difficult position because reports need to be generated according to the local accounting standards of the country it operates and generally accepted accounting principles (GAAP) on the home country in order to general consolidated financial statements. Other problems faced by corporations include difficulty in assessing foreign capital markets, lack of comparability of financial statements and lack of high-quality accounting