- Identify the major sources of influence on Ericsson's accounting standards and practices.
- If you were in the position of CFO, would you recommend that Ericsson adopt full IFRS or IFRS as adopted by the EU? Provide a rationale for your recommendation.
The response addresses the queries posted in 803 words with references.
// The accounting standards and practices are an inevitable part of the organizations. This paper will help in identifying the major sources of influence on Ericsson's accounting standards and practices along with a recommendation to the company to adopt IFRS as adopted by the EU//
Ericsson, a Swedish telecommunications firm founded by Lars Magnus Ericsson, is one of the world's largest suppliers of mobile and mobile equipments and provides total solutions, ranging from systems and applications to services and core technology for the wireless communication. It has been in existence since 1876 and presently has its standing in more than 140 countries of the world with a world market share of around 35%. The company's headquarters are located in Stockholm, Sweden (Ericsson, n.d.).
Like any other organization, Ericsson also follows some accounting standards and practices, which are influenced by some of the factors. The following are some of the examples of factors that had an influence on the accounting standards and practices of Ericsson:
The organization conducts its audit on the basis of the auditing standards in Norway, which are in accordance with the Norwegian Act on Auditing and Auditors. This standard requires that the company plans and does its audit by assuring that the financial statements are totally free from material ...
The response addresses the accounting standards and practices in 803 words with 4 references.