International Accounting: A User Perspective Fourth Edition

Description

As business and capital markets continue to grow more global, the need for cross-border financial information has correspondingly increased. And, as IFRS gets closer to becoming a reality in the United States, international accounting has been brought to the forefront in both the academic and the practitioner markets. International Accounting: A User Perspective is designed to provide an understanding of international accounting issues to current and future business managers. With the problems exposed in the quality of financial reporting in many countries, a solid understanding of international accounting issues is an important part of the portfolio of skills that managers in medium and large enterprises must possess. Each chapter ends with a summary of the main points contained therein, discussion questions, exercises, Test Prepper questions, and where appropriate, cases. The discussion questions are relatively straightforward applications of chapter materials. In keeping with the user perspective of the book most of the exercises involve hands-on application of domestic and foreign annual reports. The book is accompanied by instructors material that includes 1) an outline of each chapter, 2) solutions for selected exercises and cases at the end of the chapter, 3) a test bank consisting of true/false and multiple choice questions, 4) Test Prepper questions, and 5) PowerPoint slides.

Chapter

CHAPTER 2: The Move to International Financial Reporting Standards

Introduction

Rationale for Harmonization

Pressures for Harmonization

Investors

Multinational Companies

Regulators

The Securities Industry and Stock Exchanges

Emerging Economies

Obstacles to Harmonization

Measuring Harmonization

Supra-national Organizations Engaged in Accounting Harmonization

International Accounting Standards Committee

International Accounting Standards Board

International Federation of Accountants

International Organization of Securities Commissions

United Nations

Organization for Economic Cooperation and Development

Other Harmonization Efforts

Bilateral or Mutual Agreements

World-Class Issuer

The IASC/IOSCO Initiative

Transition to IFRS in the US

Evidence on Harmonization

Global

Regional

Summary

Questions

Exercises

Cases

References

Test Prepper Questions

CHAPTER 3: Accounting for Currency Exchange Rate Changes

Introduction

Overview of Foreign Currency Markets and Exchange Rates

Foreign Exchange Exposure

Accounting for Exchange Rate Fluctuations

Foreign Currency Transaction Versus Translation

Translation Methods

Foreign Currency Translation in the United States

FASB Statement No. 8 (SFAS No. 8)

FASB Statement No. 52 (SFAS No. 52)

SFAS No. 52 and the Functional Currency Concept

SFAS No. 52 Translation in Highly Inflationary Economies

SFAS No. 133-Accounting for Derivatives and Hedging Activities

SFAS No. 161-Disclosures About Derivative Instruments and Hedging Activities

The International Accounting Standard on Foreign Currency Translation

Summary

Questions

Exercises

Cases

References

Test Prepper Questions

CHAPTER 4: Selected Financial Reporting and Disclosure Issues in the Global Context

Introduction

Accounting for Changing Prices

Inflation-Adjusted Accounting Models

General Price Level Adjusted (GPLA) Model

Current Cost-Adjusted (CCA) Model

Accounting for Intangible Assets

Goodwill

Brands, Patents, and Trademarks

Research and Development

Geographic Segment Reporting

Research Evidence on Geographic Segment Reporting

Developments in Geographic Segment Reporting

Environmental and Social Reporting

Environmental Disclosures

Employee Disclosures

Global Reporting Intitiative (GRI)

Survey of Corporate Responsibility Reporting

Value-added Statement

Summary

Questions

Exercises

Cases

References

Test Prepper Questions

CHAPTER 5: Using Corporate Financial Reports Across Borders

Introduction

Corporate Responses to Foreign Users of Financial Statements

Coping With Transnational Financial Reporting

Preparer Response to Transnational Financial Reporting

User Response to Transnational Financial Reporting

International Financial Statement Analysis

Depreciation and Revaluation of Long-lived Assets

Goodwill

Foreign Exchange

Pension and Other Post-employment Benefits

Consolidation and Group Reporting

Taxation

Additional Issues in International Financial Statement Analysis

Availability of Data

Reliability of Data

Timeliness of Data

Language, Terminology, and Format

Summary

Questions

Exercises

Cases

References

Test Prepper Questions

CHAPTER 6: Financial Reporting in Emerging Capital Markets

Introduction

The Nature and Importance of Emerging Capital Markets

The Role of Financial Reporting in Emerging Capital Markets

Characteristics of Financial Reporting in Emerging Capital Markets

Availability

Reliability

Comparability

Financial Reporting Policy Issues in Emerging Capital Markets

Information Availability

Strengthening Enforcement Capability

Convergence of Accounting Standards

Caveats Based on Recent Developments

Accounting in Selected Emerging Capital Markets

Mexico

People's Republic of China (PRC)

Summary

Questions

Exercises

Cases

References

Test Prepper Questions

CHAPTER 7: Managerial Issues In International Accounting

Introduction

Budgeting and Performance Evaluation

Using Appropriate Performance Measures

Using Appropriate Currencies

Transfer Pricing Policies

Other Considerations

Distinguishing Between Manager Performance and Subsidiary Performance

Some Comparative Evidence on Budgets and Performance Evaluation Systems

Global Risk Management

Multinational Capital Budgeting

Managing Foreign Exchange Risk

Transfer Pricing

Major Constituents Affected by Transfer Pricing Choices

Internal Constituents

External Constituents

Transfer Pricing Methods

Advance Pricing Agreements

Research Evidence on Determinants of International Transfer Pricing Methods

A Transfer Pricing Illustration

Information Technology

Complexities Involving IT Systems for MNCs

Global IT Challenges and Strategies

Ethics and Culture

Summary

Questions

Exercises

Cases

References

Test Prepper Questions

APPENDICES

List of Abbreviations

Directory of Relevant Web Sites

SUBJECT INDEX

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

Y

Z

Back Cover

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