Department

School of Accountancy

Document Type

Article

Publication Date

2-1997

Abstract

The article states that more and more companies are trying to raise capital by listing their securities for sale on foreign exchanges.More and more companies are trying to raise capital by listing their securities for sale on foreign exchanges. However, the way financial statements are prepared varies from one country to the next. U.S. companies looking to raise capital abroad must consider the myriad rules regarding financial statement presentation just as foreign companies listing stock in the United States must adhere to the rules and regulations of the Securities and Exchange Commission. Similarly, the costs of reconciling U.S. accounting standards to adhere to foreign standards also can be high, so it is important that U.S. companies know the questions they will face when going global. Although the details of additional disclosures must be determined case by case, they can be developed in the context of normal corporate reporting. However, U.S. public companies should determine the nature and extent of additional disclosures in advance to provide for an orderly approach to corporate reporting and to avoid any undue delay in the listing process.

Journal

Journal of Accountancy

Journal ISSN

0021-8448

Volume

183

Issue

2

First Page

33

Last Page

38

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