MADE BY : HIMANSHU VERMA

M.COM-I YEAR
Transnational reporting means
reporting financial statements outside
the borders of the country. Companies
across the globe use reporting systems
for the general purpose of financial
communique and annual statements.
 Expansion of World Trade
 Rapid growth in international capital
market.
 Increase of cross border merger and
acquisition.
 Predominance of MNC
 Reporting to existing and new investors
spread world wide.
 Companies entering into foreign capital
to list their securities in to foreign stock
exchanges
• Companies entering into foreign capital to
list their securities in to foreign stock
exchanges.
• Submission of reports as per requirements
of foreign securities exchanges
 Language & Currency : An enterprise would generally
prepare it’s financial reporting in the language that its local
investors would understand.

 Accounting Principles : The most serious problem the

reporting company faces is in contemplating the
accounting principles of another country.

 Disclosure Requirement : Disclosure requirement is

essential ingredient of proper functioning of capital
market. Therefore, it is utmost requirement of the
company to disclose all required information in the
financial statement to enable the investors to take
appropriate decisions.
 Audit Requirement : The function of audit is to
lend credibility to financial statement. In order to
do so auditing professionals itself need a set of
well defined audit standards. This is particular so
when financial statements are prepared in one
country and used by users in another country.