Abstract The purpose of this paper is to provide accounting instructors with a procedure and suggestions for introducing an international perspective into the advanced accounting course. A survey of accounting faculty conducted by Stout and Schweikart (1989) indicates that if international coverage were limited to a specific course, this would be the course selected. By this stage, the accounting student is familiar with U.S. GAAP and will benefit from an understanding of some of the underlying economic and legal factors which create differences in accounting standards and practice from one country to another. The following steps are recommended to introduce an international perspective into the advanced accounting course. First, a small group of developed countries is selected which contrasts with U.S. GAAP as to the treatment of such advanced accounting topics as consolidation, business combinations, foreign currency transactions and foreign currency translations. Second, students are introduced early in the course to some of the primary factors responsible for differences in accounting practices and procedures in the countries studied. Third, exercises and examples taken from non-U.S. statements and SEC filings, such as the Form 20-F, are used to highlight differences between U.S. and foreign GAAP. An example is provided on the implementation of this procedure. The countries selected, Germany. Italy, Japan and the United Kingdom, are compared with the U.S. as to the basis of the accounting system, the level of differentiation between tax and financial reporting, and primary sources of capital. The effect of these differences on accounting practices in the five countries is discussed. Examples taken from actual statements and form 20-Fs, required by the SEC in certain instances to reconcile non-U.S. to U.S. GAAP, are provided for class-room use. Through this approach, students should develop an awareness and an appreciation of several accounting systems. This is necessary in order to compete in an increasingly global business environment.
O'Connor et al. (Sun,) studied this question.