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Challenge plays a significant role in an entity as it inspires an entity in order to overcome all the challenges faced by an entity by increasing their strength. Current strength of an entity is essential in order to beat all the customers. This report is also accounting challenges faced by an entity which will includes IFRS and GAAP.
As per the views of Parker and Guthrie, (2017) accounting is a process under which various financial data and transactions are to be recorded and then different financial statements are to be prepared for assessing business performance in the industry. There are mainly two types of the accounting systems are to be used for each and every business entity which are like as management accounting and financial accounting. On the basis of such kinds of accounting systems are approaches there are company able to take internal as well as external business decisions which are necessary for the firm. While preparing the financial accounts and statements there are several kinds of practices, standards and accounting theories are used and adopted. Such kinds of practices differ from the country to country and affects to the company which operates at the global level. Because the firm has to follow accounting standards of every country which is a big challenge for it. To overcome such kinds of problems as well as constraints there are international standards are to be settled where the management has to follow only one law and theory for making and the accounting treatments. A company which operates at the national level then it has to use those standards as well as practices which are framed by the authority and regulatory body of the country. On the other side at the time of doing business at the international as well as global level then it is compulsory to use and follow all kinds of the international accounting standards.
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According to Hope, Thomas and Vyas, (2017) the global company when operate in a particular industry at the international level then if it follows the accounting standards of its home country or the host country only then each and every community not able to understand and analyse its financial performance. In this it has to make accounting treatment of various financial standards by considering the international accounting practices which lead to understand every country's community at where it operates. There are various accounting standards are settled and framed for the international and global firms by the International Accounting Standards Board (IASB) which has to implement at the workplace. Those standards as well as accounting practices which are to be framed by the regulatory body IASB are identified with the name of International Financial and Reporting Standards (IFRS) and these are used by the global firms while preparing the financial statements. Apart from this there are several theories are also different in all the countries which are used to make accounting treatments and then produce financial statements. In this context, General Accepted Accounting Principles (GAAP) theories are used where different rules as well as regulations needs to follow to the company. When the business entity operates and provide its services in a particular country then it has to make accounting treatments accounting to that but in the global perspective these are different.
At the time of doing any accounting treatments then there are several practices and IFRS used which are changes over the specific period. Due to this, the global companies has to make changes in the existing business structure as their current business get disturbed with the introduction of external rule's ad the regulations imposed by the external business environment. The primary motive of an entity is to accomplish al their desired aims and the objectives within a given period as their basic aim is to improve the current business practices which helps in delivering quality oriented services to all the customers exists in the external business environment (Apostolou, Dorminey, Hassell and Rebele, 2017). Being global business users an entity is required to enhance their overall skills and the capabilities in order to improve their existing business practices in order to grab higher market opportunities in the external market. The quality of all the services provided y an enterprise to the external market users will in turn help in creating additional value of the business in the external business environment which helps in providing ultimate advantage to an entity. Role of accounting standards is increases with the passage of time in order to develop its existing brand image in the external business environment as their main motive is to accomplish desired aims and the objectives within a given period.
An entity will need to give attention on all the current business functions in order to improve the quality of all the services offered by an entity to its variety of customers located at the external business environment as their main motive is to consider all the objectives and goals specifically designed for the betterment of the business (Atmeh and Maali, 2017). The foreign entities will emphasise on considering all the tastes and preferences of all the external market users for whom development of existing business practices is essential. The current market services of an entity will get improved with the passage of time as desired aim of the business is to overcome all the problems faced by an entity in the external business. The challenges imposed on an entity will be removed by strengthening the current business sector. Desired aims and the objectives of an enterprise is to achieve all the aim ad targets of an entity by eliminating all the existing market competitions takes places in the external business environment (Lubbe, 2017). The essential role played by an entity is to consider all the tastes and preferences of al the users whose performance matters for an entity in order to maintain a good position in the external market. The legal shield will be used by an entity in fighting against all the competitors which is current affecting the overall performance of an entity owner who held responsible for the actions of an entity. The negative influence of the external market users will be transformed into positivity by taking ultimate advantage of the desired aim of the business. The business entity owner tries to minimise all the complexities currently faced by them in the external business environment as their major aim is to overcome all the problems imposed by the external market users by simplifying the overall procedures.
Challa, Gangam and Amirapu, (2017) has asserted that challenges imposed on an entity will suppress the capabilities of an entity which needs to be improved with the passage of time in order to gather important facts and figures elated to the current problem faced by an entity ion order to eliminate all the problems exists in the business environment. The desired aims and the objectives of the business is to accomplish all the desired aims and the objectives in maintaining their position in the external business environment. Business complexities will be managed by an entity by adopting appropriate regulatory framework in enhancing the overall quality of services currently offered by an entity to its variety of users who are dependent on the services provided by an entity to its customers or outside members (Cockrell, Stone and Wier, 2017). The needs of the external market users is essential which needs to be accomplished by an entity within a given period in order to generate good results in less period. The role of the business is improved the systematic order of all the business practices that is significant in the existing business of an entity to be implemented in developing all the current business practices. The deficiency lies in the current business systems is essential in order to create higher market advantage on the basis of current services they offer in satisfying all the needs and higher expectations of all the market users.
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Duska, (2017) has suggested that increasing costs is another important issue raised which needs to be controlled by an entity in order to provide ultimate advantage to an entity in improving their current services in order to grab higher market share in the external market. The role of accounting has increases with the increasing number of costs incurred in the business which in turn decrease the overall sales and the revenue. The higher cost can be compensated by increasing the current income in the business which in turn improves the overall market share of an entity in order to grab higher market opportunities in the external business environment (Parker and Guthrie, 2017). The desired aims and the objectives of an enterprise is to consider all the goals and the objectives prepared by an individual in improving the current business condition of an entity as desired aim of the business is to overcome all the deficiency lies in the current business system of an entity. The accounting challenges faced by an entity is increasing amount of costs and the expenditures incurred in the business is of total 67% which is higher ratio that needs to be improved with the passage of time as recording all the costs to be incurred in the business is included in order to eliminate all kinds risks that may occur in the near future. The basic aim of the business is to rebuild their business based on certain parameters which may includes improving current business structure of the business whoever is operating in the current industry are required to accomplish all the basic aims and targets in less period as compared to all the competitors of an entity lies in the external business environment. The role of the business enterprise is to achieve all the desired aims and the objectives to be completed in less period.
Duska, (2017) has asserted that economic uncertainty is another important challenge faced by an entity operating their business on a global level which helps in grabbing higher market share by nurturing the current skills and the capabilities of the business in order to achieve all the desired aims and targets. The business objectives will be accomplished in less period by improving the overall market share gained by an entity by eliminating all the hidden aspects involved in the business enterprise in increasing their overall market share. Uncertainty is the biggest threat imposed on an entity which needs to be analysed by an entity after reviewing overall performance of the business in order to gain higher market advantage in the external business environment. Desired aims and the objectives of an entity owners is to improve their performance by applying various tools and techniques by removing all their deficiencies lies in the existing system (Jyothi and SATYANARAYANA, 2017). The effectiveness of the system is essential for an entity in order to grab higher market advantage in overcoming all the current weaknesses lies in the current accounting system which will be improved by following various aims and the objectives in less period. IFRS principles will be used by an entity in order to consider all the tastes and the preferences of the external market users located in the business environment which needs to be achieved by an entity owner for the beneficial of an entity. The desired aim of the business is to gain higher market advantage by taking additional opportunities. The role of the business entity is to gain higher competitive advantage in the external business environment where skill and the capabilities of an entity will get improved with the passage of time in considering all hidden aspects about the business which needs to be assessed by an entity. The challenges assessed by an entity is to consider all the goals and the objectives within a given period. Complexities of the business will be converted into positivity of the business in order to extend their current market share in the external business environment.
It can be concluded from the above assignment that various challenges ascertained by an entity is reflects the negative performance of an organisation which gets suppressed due to higher position of costs on their business. This report also emphasises on using of IFRS and GAAP principles which can be used by an individual in order to grab higher market advantages in the external business environment.
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