1、1.Define the “International Accounting”and explain its content.Definition of International AccountingAccounting is a branch of applied economics that provides information. International accounting is distinct because the information concerns a multinational enterprise(MNE) .Content of international
2、accounting(1)Comparison of accounting standards(2)Accounting harmonization or convergence(3)International financial accounting(4)International managerial accounting(5)International auditing2.Large companies often list their equity shares on outside stock market.What accounting issues does this pract
3、ice raise usually?(1)Additional requirements for reporting accounting information(2)How best to communicate with an expanding base of shareholders worldwide(3)Language problems:(4)International Financial Reporting Standards is beneficial3.Explain factors which influence accounting development(1)Sour
4、ce of finance: In countries where bank dominates source of finance, accounting focus on creditor protection through conservative accounting measurements. (2) Legal system: The legal system determines how individuals and institutions interact.(3) Taxation: In many countries, tax legislation effective
5、ly determines accounting standards (4) Political and economic ties: Accounting ideas and technologies are transferred through conquest, commerce, and similar forces.(5) Inflation: Inflation distorts historical cost accounting and affects the tendency of a country to incorporate price changes into th
6、e accounts.(6) Level of economic development: The factor affects the types of business transactions conducted in an economy.(7)Education level: In countries with developed education, concerns for accounting information is high. (8) Culture: Culture means the values and attitudes shared by a society4
7、. The European Union-formerly known as the European Community and at its start, the European Common Market-was formed in 1957 and now has about 30 members. To encourage capital movement and capital formation, the EU has issued various Directives designed to harmonize the generally accepted accountin
8、g principles of its member countriesRequired:Which of the factors affecting accounting development are likely to be the most serious obstacles to the EU harmonization effort? What factors indicate the EU harmonization effort can succeed?(1)Legal system:France is Code law system,UK is Common law syst
9、em.Level of economic development:In some countries, economic development level is high, some countries economic development level is low.(2)Political and economic ties:they are members of the European Union, political and economic contact is very close,Capital and talent exchange freedom.5.The U.K a
10、nd the U.S have a common accounting heritage and are linked by history and language. Anglo-American accounting is a term sometimes used to denote their accounting styles, which are similar in orientation, purpose, and approach. Yet accounting differences still exist between these two countriesRequir
11、ed:Identify the major differences between U.K and U.S accounting that are discussed in this chapter.The U.K The U.SGoodwill Capitalize (2)Greater interest in the company by financial analysts and investors; (3)Increased share liquidity; (4)Lower cost of capital; (5)But, evidence strongly indicates t
12、hat corporate managers often have strong incentives to delay the disclosure of bad news. 7.What is the distinction between accounting measurement and accounting disclosure?(1)Accounting measurement is the process of assigning numerical symbols to events or objects. (2)Disclosure, on the other hand,
13、is the communication of accounting measurements to intended users.(3)Advances in financial disclosure are likely to outpace those related to accounting measurement for a number of reasons.(4) Financial disclosure is a less controversial area .(5) changes in disclosure requirements are more rapidly i
14、mplemented.(6) financial disclosure is not necessary to sacrifice its accounting measurement system. 8.There are four translation methods, what are they ? which is best? (1)Current Rate Method,Current-noncurrent Method,Monetary-nonmonetary Method,Temporal Method(2)No single translation method can be
15、 appropriate for all circumstances and for all purposes-Circumstance differ widely-Different purpose9.What evidence is there that International Accounting Standard are becoming widely accepted around the world? (1)Growing numbers of companies are adopting IFRS .(2)Dozens of countries base their nati
16、onal accounting standards on IFRS. (3)Many international organizations, endorse the use of IFRS. (4)IFRS are used as an international benchmark in many major industrialized countries. (5)IFRS are accepted by many stock exchanges and securities regulators. (6)IFRS are recognized by the European Commi
17、ssion (EC) and other supranational bodies. (7)Norwalk Agreement committed FASB and IASB to convergence.10.What is a Logical Approach to Analyzing Foreign Financial Statements?(1)Undertake a business strategy analysis.(2)Conduct an analysis of a firms financial reporting practices.(3)Conduct a financial analysis using ratio and cash flow data.(4)Do a prospective analysis.
