e-journal
Multinationality:The Financial Accounting Implications
This pa per fo cuses on the fi nancial ac counting chal lenges posed by the rap idly burgeoning
global fi nancial mar kets. Two chal lenges are ex amined. (1) meas uring the
economics of many com plex trans actions made pos sible by global ized fi nancial mar -
kets, and (2) cre ating a mini mum core of glob ally ac cepted ac counting stan dards for
firms in the global mar ketplace. On both counts, ac counting has risen to the chal lenge,
at least at the macro level, by at tempting to meas ure and re port the con sequences of
new trans actions and to cre ate and pro mote a glob ally’ ac cepted set of ac counting
standard. There is no evi dence, how ever, that this ef fort has gone far enough or has
had an im pact yet at the mi cro level where it counts the most i.e., the pub lished fi nancial
state ment But there is op timism and mo mentum, com pelled in part by the in for -mation needs of a vast and grow ing global ized mar kets.
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