Impact of different accounting treatments on the performances of three companies in Singapore, United states and Japan.

• Main Author: Chew, Suan Lui
• Other Authors: Tan Hwee Cheng
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/64049
• Institution: Nanyang Technological University

Annual reports are an important source of information to investors in their decision-making. process. These reports are prepared in accordance with their respective countries' accounting standards. However, different countries adopt different accounting standards. This has significant implications. This report aims to identify the possible implications. The report looks into the differences of accounting standards of Singapore, USA and Japan, and its possible effects. A case study of three companies in the three countries has been done to illustrate the effects. The case study indicates that different accounting treatments affect the earnings reported and the computation of financial ratios. Generally, these are the basic elements investors relied upon in their decision to invest in a company. Thus, investors may be misled because higher reported earnings and favorable ratios of a company may not be entirely due to its superior operating results. They may be partially due to the favorable accounting standards of a company.