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2 Found helpful 5 Pages Essays / Projects Year: Pre-2021

Understanding the economic reality of companies from two different nations cannot be 3 achieved by simply comparing their financial statements. This is because many of the 4 observable accounting numbers do not necessarily reflect company practice, but rather, 5 national factors like legal systems, economics, and politics. This reality can mislead 6 uniformed users, even if both nations are adopting the International Financial Reporting 7 Standards (IFRS). In demonstrating this, we will compare the 2014 Annual Reports of 8 Chen Hsong Holdings Limited, a ‘small’ injection moulding machine manufacturer 9 from Hong Kong, with Pro-Pac Packaging, a large Australian packaging solutions 10 provider. By investigating different countries of incorporation and ownership 11 arrangements, this will give weight to our overall strategy to help user understanding: to 12 study the individual country, but not completely isolate it from the region.


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