International Accounting A User Perspective 2nd Edition

1、International Accounting A User Perspective 2nd EditionInternational AccountingA User Perspective2nd Edition Introduction to International AccountingPart One Introduction to international accountingPart Two Accounting in the global areas(Germany,USA,Japan,UK) Part Three Accounting problems of develo

2、ping countries Part Four Accounting problems of Eastern Europe Part Five International accouting harmonizationPart Six : Technical issuesPart Seven: Analysis and interpretation of foreign financial statementsPart One Introduction to international accountingObjective One Describe the major users of a

3、ccounting information. Who are the major users of accounting information?1.Internal managers who use accounting information for short-term planning ,long-range planning, nonroutine decisions , controlling routine operations and formulating overall policies . 2.External parties,such as present and po

4、tential investors and long-term loan creditors,suppliers,banks ,customers, government authorities(both at home and ,for multinational enterprises , overseas) who use the information for making decisions about the company.?Management accounting&Financial accounting1.ConceptionManagement Accountin

5、g The process of identifing , measuring, accumulating, analyzing, preparing, interpreting and communicating information that helps managers fulfill the orgnizations objectives.Financial Accounting The field of accounting that develops information for external decisoin makers such as stockholders,sup

6、plies, banks,and government authorities.2.Distinctions? Management Accounting Financial AccountingPrimary usersOrganization managers at various levelsOutside parties such as investors and governments agents but also organization managersFreedom of ChoiceNo constraints other than costs in relation to

7、 benefits of improved management decisionsConstrained by generally accepted accounting principles(GAAP)Behavio-ralImplicat-ionsConcern about how measurements and reports will influence managersdaily behaviorConcern about how to measure and communicate economic phenomena. (Behavioral considerations a

8、re secondery)Time focus Future orientationPast orientationTime periods coveredFlexible ,varying from hourly to 10 to 15 years.Less flexible;usually 1 year or 1 month.ReportsDetailed reports Summary reports Delineat-ion of activitiesField is less sharply defined ?Field is more sharply defined ?Object

9、ive Two? What is the definition of international accounting?World accountingInternational accountingAccounting for foreign subsidiarys Choi and Mueller(1988)International Accounting extends general purpose, nationally oriented accounting in its broadest sense to:(1) international comparative analysi

10、s, (2) accounting measurement and reporting issues unique to multinational business transactions and the business form of the multinational enterprise,(3) accounting needs of international financial markets, and (4) harmonization of worldwide accounting and financial reporting diversity via politica

11、l, organizational, professional and standard-setting activities.Objective Three:? What are the topics covered by international accounting? Financial accounting topic Managerial accounting topic Comparative accounting topic Objective Four: International accounting groups and organizations1.Public-sec

12、tor organizationEEC,OECD,UN2.Private-sector organizationsIASC,IFACLearning Objectives:Identify the main environmental variables that shape accounting.Recognize the differing role of accounting throughout the world. Learning Objectives:Demonstrate the economic effects of accounting diversity. Appreci

13、ate the benefits of classifying countries into accounting clusters. Chapter Outline:1.IntroductionThe purpose of accounting provide information that is useful for making business and othereconomic decisions.Accounting is commonly referred to as the language of business. Accounting is the product of

14、its environment Accounting also influences the social environment. Interaction between Accounting and its environment Nature of Capital MarketWhether the market is predominantly equity-oriented or debt-oriented equity-oriented capital markets debt-oriented capital markets the financial instruments t

15、he globalization of capital markets equity-oriented capital marketsStock market-main source of capitalAnnual reportsMarketing devicePublic relations documentsAttract investorsGood performanceNot good performanceDebt-oriented capital marketsBank debt-main source of financingAnnual reportsSpartanMatte

16、r-of-factTendency-understate report earnings the level of sophistication of financial instruments the level of globalization of capital markets Type of Reporting RegimeType of Business EntitiesType of Legal System Level of Enforcement of RegulationsLevel of InflationPolitical and Economic Ties Statu

17、s of the Accounting ProfessionExistence of a Conceptual FrameworkQuality of Accounting Education 3.Diverse Roles of Accounting in Countries Policy Choices in Accounting 4.Effects of Diversity on Capital Markets 5.Classifications of Financial Accounting and Reporting Systems Review of Selected Classi

18、fication Studies 6.Major Challenges Facing Accounting Globally Global Harmonization Quality of Financial Reporting in Developed and Emerging Economies 7.Major Challenges Facing Accounting GloballySocial and Environmental Reporting Financial Reporting in the High Technology Era 1.Which of the followi

19、ng variables play a role in shaping accounting development?a.nature of capital marketsb.type of reporting regimec.type of business entitiesd.All of the above.e.Both a and c.2.High levels of financial disclosure are generally found in countriesa.where businesses raise their capital from a large and d

20、iverse investor/creditor group.b.where businesses raise their capital from the government.c.where there is a limited number of owners.d.where the sophistication of the financial community is not very high.e.where the cost of publishing financial statements is high.3.In countries where business capit

21、al needs are provided by only a few very large banksa.the level of disclosure in financial statements tends to be panies tend to devote significant resources to make their annual reports panies tend to use income-increasing accounting panies tend to understate

22、reported earnings.e.All of the above 4.Which of the following does not affect a countrys financial accounting orientation?a.The level of inflation.b.Political and economic ties with other countries.c.Status of the accounting profession.d.Quality of accounting education.e.All of the above affect a co

23、untrys financial accounting orientation.5.In countries with micro-oriented accounting systems, the role of accounting isa.to provide investors with information on the true position of companies.b.to reflect the effect of government economic policies in company accounts.c.to provide inputs for indust

24、ry or national accounting reports.d.to determine the tax liability of business entities.e.All of the above.6.Which of the following is not true about accountings role in a macro-oriented environment,a.to provide investors with information on the true position of companies.b.to reflect the effect of

25、government economic policies in company accounts.c.to provide inputs for industry or national accounting reports.d.to determine the tax liability of business entities.e.All of the above. 7.Which of the following is not an environmental factor affecting accounting?a.Level of enforcement of regulation

26、sb.Nature of capital marketsc.Type of legal systemd.Languagee.Level of inflation9.In which pair of countries is there a strong private sector influence on financial accounting standard setting?a.France and Germany.b.China and Russia.c.France and the United Kingdom.d.Germany and Japan.e.The United Ki

27、ngdom and the United States.10.Which of the following is an impetus for international accounting standards?a.The linkage of capital markets worldwide.b.Emerging democracies in Latin Americac.The new activist role of the OECDd.The collapse of communism in the former Soviet Unione.The emergence of the

28、 World Trade Organization (WTO)11.Among the factors affecting accounting development are the economic and political ties between countries. Which of the following pairs of countries do not have such ties with each other?a.Philippines and the United Statesb.Singapore and the United Kingdomc.Malaysia

29、and Argentinad.Indonesia and the Netherlandse.France and Germany12.The status of the accounting profession is a factor that affects accounting development in countries. In which of the following countries is accounting not regarded favorably as a career choice?a.United Statesb.New Zealandc.Russiad.A

30、ustraliae.Canada13.Which of the following is not typically included in an accounting conceptual framework?a.a statement of objectives of financial accountingb.targeted users of financial statementsc.limitations of financial statementsd.licensing criteria for public accountantse.characteristics of go

31、od financial accounting14.Which of the following countries have conceptual frameworks for accounting?a.Singaporeb.Malaysiac.Indonesiad.Canadae.All of the above15.Identify the benefit(s) of classifying countries according to their accounting systems.a.Countries can learn from the accounting experienc

32、es of other countries in their group.b.Countries can use other countries in their group as models for setting standards.c.Global standard-setters can anticipate the reaction to their proposed standards.d.MNCs can plan on the type of disclosure they need to provide in various countries.e.All of the a

33、bove. 16.Which of the following accounting patterns did Mueller 1967 identify in his pioneering classification study on Western, market-oriented economies?a.Macroeconomic patternb.Microeconomic patternc.Independent discipline approachd.Uniform approache.All of the above17.Which of the following was

34、not among the accounting patterns identified by Mueller 1967 in his pioneering classification study on Western, market-oriented economies?a.Macroeconomic patternb.Independent discipline approachc.Socialist approachd.Uniform approache.Microeconomic pattern18.Nobes 1983 classification study had the fo

35、llowing European countries in the macro-uniform, continental, tax-based family:a.Italy, France, W. Germany, Swedenb.Belgium, Spain, Italy, W. Germanyc.Italy, France, Spain, Swedend.Italy, France, Ireland, Spaine.Italy, France, Belgium, Spain19.Nobes 1983 classification study had the following countr

36、ies in the micro-based, U.K. influence, family:a.Ireland, Netherlands, Canada, Australiab.Australia, New Zealand, U.K., Irelandc.Netherlands, Australia, U.K., U.S.Ad.Australia, Canada, U.K., Irelande.Netherlands, Australia, Canada, U.S.A.20.The major immediate challenges that face accounting in the

37、global arena include:a.Global harmonizationb.Financial reporting in emerging economiesc.Social and environmental reportingd.Financial reporting in the high technology erae.All of the aboveNew words and phrases国际贸易 international trade以货易货 barter结算 settlement货币兑换 currency exchange外币交易 foreign currency

38、 transactions国际借贷 international borrowing国际融资活动 international financing直接投资 direct investment东道国 host countries跨国公司 multinational corporations/ multinational companies /MNC multinational enterprises/MNE母公司 parent company子公司 subsidiary company财务报表 financial statements会计差异 accounting variance合并财务报表 co

39、nsolidated financial statements外币报表折算 translation of foreign currency statements通货膨胀 inflation国际会计师联合会International Federation of Accountants/IFAC国际审计准则International Standards for Auditing/ISA物价变动会计changing price accounting国际会计准则International Accounting Standards/IAS国际财务报告准则International Financial R

40、eporting Standards/IFRSs国际会计准则理事会International Accounting Standards Board/IASB证券交易所 stock exchange历史观 historical 6view会计国家化 accounting nationalization会计国际化 accounting internationalization比较观 comparative view比较会计模式 comparative accounting model协调观 harmonization view联合国 United Nations/UN经济合作和发展组织 Organ

41、ization for Economic Cooperation and Development/OECD欧盟 European Union证券委员会国际组织 International Orgnization of Securities Commissions/IOSCO会计职业界 accounting profession美国注册会计师协会 American Institute of Certified Public Accountants /AICPA美国会计协会 American Accounting Association财务会计准则委员会Financial Accounting S

42、tandards Board/FASB宏观国际会计macro-international accounting微观国际会计micro-international accountingChapter 2HARMONIZING FINANCIAL REPORTING STANDARDS GLOBALLY Learning Objectives:Recognize the arguments for and against harmonization. Identify the pressures for and the obstacles to harmonization. Learning Ob

43、jectives:Become familiar with the main organizations involved in harmonization.Examine some previous harmonization efforts. Compare harmonization approaches in EU and ASEAN. Chapter Outline: Rationale for Harmonization Pressures for Harmonization Obstacles to Harmonization Measuring Harmonization Su

44、pranational Organizations Engaged in Accounting Harmonization Other Harmonization Efforts Current Evidence on Harmonization Global RegionalA Tale of Two Regions - Comparing ASEAN to EU Chapter 3ACCOUNTING FOR CURRENCY EXCHANGE RATE CHANGES Learning Objectives:Provide an overview of foreign exchange

45、markets and define related terminology. Describe the different types of foreign exchange exposure. Learning Objectives:Differentiate between foreign currency transaction and translation.Compare the different methods of accounting for foreign currency translation. Learning Objectives:Describe the mai

46、n features of SFAS No. 52 and compare it to earlier standards.Present the translation methodology under IAS No. 21. Learning Objectives:Discuss the impact of the introduction of the euro on financial reporting.Chapter Outline:Overview of Foreign Currency Markets and Exchange Rates Foreign Exchange E

47、xposure Accounting for Exchange Rate Fluctuations Foreign Currency Transaction versus Translation Translation Methods Foreign Currency Translation in the United States The International Accounting Standard on Foreign Currency Translation Accounting Issues Related to the Euro Chapter 4SELECTED FINANC

48、IAL REPORTING AND DISCLOSURE ISSUES IN THE GLOBAL CONTEXT Learning Objectives:Identify the effect of inflation on financial reporting and discuss the two main inflation-adjusted accounting models. Learning Objectives:Examine the issues related to accounting for goodwill and intangible assets and dis

49、cuss the main accounting approaches related to them. Learning Objectives:Highlight the costs and benefits of geographic segmental disclosure and review the new FASB and IASC standards on segmental reporting. Learning Objectives:Discuss the growing demand for social reporting including employee and e

50、nvironmental disclosures. Chapter Outline:Accounting for Changing Prices Inflation-Adjusted Accounting Models General Price Level Adjusted Model Current Cost-Adjusted Model Accounting for Goodwill and Intangible Assets Goodwill Brands, Patents and Trademarks Research and Development Geographic Segme

51、nt Reporting Research Evidence on Geographic Segment Reporting Recent Developments in Geographic Segment Reporting Environmental and Social DisclosuresEnvironmental Disclosures Employee Disclosures Value Added Statement Chapter 5USING CORPORATE FINANCIAL REPORTS ACROSS BORDERS Learning Objectives:Id

52、entify the different levels at which corporations respond to foreign financial statement users. Recognize how users cope with global diversity in financial reporting. Learning Objectives:Highlight the main issues that users need to consider in conducting international financial statement analysis. C

53、hapter Outline:Corporate Responses to Foreign Users of Financial Statements Coping with Transnational Financial Reporting Preparer Response to Transnational Financial Reporting User Response to Transnational Financial ReportingInternational Financial Statement Analysis Depreciation and Revaluation o

54、f Long-Lived Assets GoodwillForeign Exchange International Financial Statement Analysis Pension and Other Post-employment Benefits Consolidation and Group Reporting Taxation Additional Issues in International Financial Statement AnalysisAvailability of Data Reliability of Data Additional Issues in I

55、nternational Financial Statement AnalysisTimeliness of Data Language, Terminology and Format Chapter 6FINANCIAL REPORTING IN EMERGING CAPITAL MARKETS Learning Objectives:Obtain an overview of the importance of emerging capital markets to developing countries. Recognize qualitative criteria for evaluating financial repo