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国际商务查尔斯w.l.希尔第七版原版官方pptchap009

9-11
The Nature Of The Foreign Exchange Market
·High-speed computer linkages between trading centers around the globe have effectively created a single market— there is no significant difference between exchange rates quotes in the differing trading centers · I f exchange rates quoted in different markets were not essentially the same, there would be an opportunity for arbitrage (the process of buying a currency low and selling it high), and the gap would close ·Most transactions involve dollars on one side— it is a vehicle currency along with the euro, the Japanese yen, and the British pound
Introduction
·A firm ’ s sales, profits, and strategy are affected by events in the foreign exchange market ·The foreign exchange market is a market for converting the currency of one country into that of another country · The exchange rate is the rate at which one currency is converted into another

国际会计第七版英文版课后答案（第七章）

国际会计第七版英文版课后答案（第七章）预览说明:预览图片所展示的格式为文档的源格式展示,下载源文件没有水印,内容可编辑和复制Chapter 7Financial Reporting and Changing PricesDiscussion Questions Solutions1.Historical-based financial statements may be misleading during periods of significant inflation.Many resources may have been acquired in periods when the purchasing power of the monetary unit was much higher. These expenses then typically are deducted from revenues that reflect current purchasing power. The resulting income number is unintelligible. Another problem for statement readers is that the value of assets recorded at their historical acquisition cost is typically understated as a result of inflation. Understated asset values produce understated expenses and overstated earnings.Financial trends are also difficult to interpret, as trend statistics generally include monetary units of different purchasing power. A positive trend in sales may be due to price changes, not real increases in sales.2. A price index is a cost ratio, that is, the ratio of a representative “basket” of goods and servicesconsumed by an average family, compared to the price of that same basket in a benchmark (“base”) year. The price index is invaluable in enabling a statement reader to translate sums of money paid in the past to their current purchasing power equivalents.3.This statement is partly true and shows the confusion thatsurrounds inflation accounting. Inaccounting for changing prices, users must distinguish between general price changes and specific price changes. General prices refer to the prices of all goods and services in the economy. The object of accounting for general price level changes is to preserve the general purchasing power of a company’s money capital. Specific price changes refer to changes in the prices of specific commodities. The object of accounting for specific price changes is to preserve a company’s productive capacity or operating capability.4.The congressman is wrong. The object of inflation accounting is to clarify the distinction betweencapital and income, not to minimize corporate taxes. Inflation accounting shows how much money the company can pay in expenses, taxes, and dividends, while keeping enough resources to maintain its capital.5.Although it is generally conceded in principle that price level-adjusted financial statements are moreuseful than conventional accounting statements during periods of significant inflation, it is a judgment call to identify exactly when price level-adjusted statements become more meaningful. Asa rule of thumb, executives in Brazil use an inflation rate greater than 10 % per month. Investors inGermany or Switzerland may believe that 5 % inflation per year is alarming. Unfortunately, no one has yet developed a formal, rigorous, easy-to-apply definition of meaningfulness.How does one determine whether the benefits of price level-adjusted accounting information exceed the costs? While the costs to generate such information can be measured, it is muchharder to quantify the benefits. Financial accounting deals with information produced by business enterprises for use by external decision makers. Consequently, measurement of the benefits of price level-adjusted information must cover all user groups in an economy. Multiple user groups, uneven distributions of benefits (both within and between groups), and favorable economy-wide spillover effects of price level information complicate the task. Adding international dimensions makes the problem even worse.6.The U.S. approach resembles the price-level adjusted current cost model, whereas the U.K.approach embraces the current cost model. While both require disclosure of the impact ofchanging prices on monetary items, the U.S. approach basically uses the general price level index to compute monetary gains and losses, whereas the U.K. employs specific prices changes by way of its gearing adjustment.1.The International Accounting Standards Board sanctions use of the general price level model orthe current cost framework. Whichever method is employed, these inflation adjustments must be expressed in terms of constant purchasing power as of the balance sheet date. Purchasing powergains or losses are to be included in current income. Firms adjusting their accounts for changingprices must disclose, at a minimum: a) the fact that end-of-period purchasing power adjustmentshave been made, b) the asset valuation framework employed in the primary financial statements,c) the type of inflation index or indexes employed and theirlevel at the end of the period as wellas their movements during the period, and d) the net purchasing power gain or loss on netmonetary items held during the period. Given the options that are available, analysts mustunderstand the differences between the approved inflation accounting methods to be able tocompare companies choosing one option over the other and to assure proper interpretation ofinflation adjusted amounts.2.The historical cost-constant dollar model measures the impact of general price level changes on afirm's reported performance and financial position. The current cost model examines the impact of specific price changes on enterprise income and wealth.The two measurement frameworks are similar in that both attempt to clarify the distinction between capital and income. They differ in reporting objectives. Whereas the historical cost/constant dollar model attempts to preserve the general purchasing power of a firm's original money capital, the current cost model attempts to preserve an entity's physical capital or productive capacity.3.Your authors think that restating foreign and domestic accounts to their current cost equivalentsproduces information that is far more helpful to investor decisions than historical cost methods, whether or not adjusted for changes in general price levels. Such information provides a performance measure that signals the maximum amount of resources that enterprises can distribute without reducing their productive capacity. It also facilitates comparisons ofconsolidated data.10. The gearing adjustment is an inflation adjustment that partially offsets the additional charges toincome associated with assets whose values are restated for inflation (e.g., higher depreciation and cost of sales). This adjustment recognizes that borrowers generally gain from inflation because they can repay their debts with currency of reduced purchasing power. Hence, it is unnecessary to recognize the higher replacement cost of inventory and plant and equipment in the income statement so far as they are financed by debt.11. Accounting for foreign inflation differs from accounting for domestic inflation in two major ways.First, foreign rates of inflation often are higher than domestic rates, which increases potential distortions in an entity's reported results from changing prices. Second, as foreign exchange rates and differential national rates of inflation are seldom perfectly negatively correlated, care must be taken to avoid double-dipping when consolidating the results of foreign operations.12.Double-dipping refers to methods that count the effects of foreign inflation twice in reportedearnings. Earnings are reduced once when cost of sales is adjusted upwards for inflation, andagain when inventories are translated to domestic currency using a current exchange rate, whichyields a translation loss. Since the change in the exchange rate itself was caused by inflation, the result is a double charge for inflation.Exercise Solutions1.This exercise is a good way to test students’ understanding of the various approaches toaccounting for changin g prices. Vestel’s earnings numbers are based on the general price levelmodel whereas Infosys is measuring its performance based on a current cost framework. Modello goes a step further and adjusts its current cost statements for changes in the general price level.Some may feel that current cost data, which is based on the notion of replacement costs, is toosubjective a notion to be reliable. Since general price level data are based on general price level indices, the numbers appearing in Vestel’s income statement are much more objective andfacilitates comparisons among companies using a similar methodology. Moreover, Vestel’sstatements do not violate the historical cost doctrine. Others will argue that the value of stockinvestments are based on discounted future cash flows. Accordingly, the current cost framework provided by Infosys is more germane to investor decisions as it measures the amount of earnings that could be distributed as dividends without reducing the firm’s future dividend gen eratingpotential. Moreover, current cost earnings, including the gearing adjustment , reflects how thefirm is impacted by prices that are more germane to the firm, as opposed to the general public.Some will argue that Modello’s income statement combin es the best of both worlds. However,there is merit to the argument that the income statementshould measure the performance of thefirm and that this is best accomplished with the current cost framework. Since individualinvestors are affected by the g eneral price level, they should adjust their share of a firm’s current cost earnings distributions for general inflation.2. a.Income Statement Historical Price Level Historical Cost-Cost Adjustment Constant Dollar Revenue MXP 144,000,000 420/340 MXP 177,882,353 Operating expenses (86,400,000) 420/340 (106,729,412) Depreciation (36,000,000) 420/263 (57,490,494)Operating income MXP 21,600,000 MXP 13,662,447a Monetary gains(losses) - (73,248,759)Net income MXP 53,280,000 MXP(59,586,312)Balance SheetCash MX(P 157,600,000 420/420 MXP 157,600,000Land 180,000,000 420/263 287,452,471Building 720,000,000 420/263 1,149,809,885Acc. Depreciation (36,000,000) 420/263 (57,490,494)Total MXP 1,021,600,000 MXP 1,537,371,862Owners' equity(beg.) MXP1,000,000,000 rolled forward b MXP 1,596,958,174Net income (loss) 21,600,000 (59,586,312)Owner's equity MXP 1,021,600,000 MXP 1,537,371,862(end)a Monetary loss:CashBeginning balance 1,000,000,000 420/263 1,596,958,174 Purchase ofreal estate ( 900,000,000) 420/263 (1,437,262,356)Rental revenues 144,000,000 420/340 177,882,353Operating expenses (86,400,000) 420/340 106,729,412)157,600,000 230,848,759-157,600,000 Monetary loss (73,248,759)b Beginning equity x price level adjustment = adjusted amount= P 1,000,000,000 x 420/263 = P 1,596,958,1742.b.Cost HC/Constant DollarReturn on Assets 21,600,000 (59,586,312)1,021,600,000 1,537,371,862= 2.1% = -3.9%Cost-based profitability ratios tend to provide a distorted (overstated) picture of a company's operating performance during a period of inflation.3.20X7 20X8Cash MJR 2,500 MJR 5,100Current liabilities (1,000) (1,200)LT-Debt (3,000) (4,000)Net monetary liabilities MJR (1,500) MJR (100)Zonolia Enterprise’s net monetary liability position changed by MJR1,400 during the year (MJR100) –(MJR1,500).4.Nominal Restate for ConstantMJR’s Majikstan GPL MJR’sNet monetary liab.'s MJR 1,500 x 32,900/30,000 = MJR1,645 12/31/X7Decrease during year (1,400) = (1,400)Net monetary liab.'s MJR 100 x 32,900/36,000 = MJR 9112/31/X8Monetary (general purchasing power) gain MJR 1545. Historical Current Cost Current Income Statement Cost Adjustment Cost Revenues MXP 144,000,000 - MXP 144,000,000 Operating expenses 86,400,000 - 86,400,000 Depreciation (36,000.000) 1.8 64,800,000 Net Income (loss) MXP 21,600,000 MXP (7,200,000)Balance SheetCash MXP 157,600,000 - P 157,600,000 Land 180,000,000 1.9 342,000,000 Building 720,000,000 1.8 1,296,000,000 Acc. Depreciation (36,000,000) 1.8 (64,800,000) Total MXP1,021,600,000 MXP 1,730,800,000 Owners' Equity Beg. Balance MXP1,000,000,000 MXP 1,000,000,000 OE revaluation a - 738,000,000Net income (loss) 21,600,000 (7,200,000) Total MXP1,021,600,000 MXP 1,730,800,000a Revaluation of land MXP 162,000,000Revaluation of building 576,000,000MXP 738,000,0006. Solution in 000,000's:MJR8,000 X 137.5/100.0 = MJR11,00020X7 20X8Current cost MJR8,000 MJR11,000Acc. depreciation (1,600) (3,300)aNet current cost MJR6,400 MJR7,700a Current cost depreciation = MJR800 X 137.5/100.0 = 1,100per year for 3 years.7. As no new assets were acquired during the year, we must determine to what extent the MJR3,000 increase in the current cost of Zonolia's equipment exceeded the change in the general price level during the year. The appropriate calculation follows: MJR11,000 - [MJR8,000 X 36,000/30,000]= MJR11,000 - MJR9,600= MJR1,400Alternatively, if we follow the FASB’s sug gested methodology, where calculations are expressed in average (20X8) dollars, current cost depreciation would be computed by reference to the average current cost of the related assets. Thus, Current cost, 12/31/X7 MJR8,000,000Current cost, 12/31/X8 11,000,000MJR19,000,000Average current cost MJR19,000,000/2 = MJR9,500,000Current cost depreciation at 10% = MJR950,000Increase in current cost of equipment, net of inflation (000's): Current Restate for Current cost/Cost Inflation Constant Zonos Current cost, net12/31/X7 MJR6,400 X 32,900/30,000 MJR7,019Depreciation (950) (950)Current cost, net12/31/X8 7,700 X 32,900/36,000 7,037MJR 2,250 MJR968The increase in the current cost of equipment, net of inflation is MJR968. The difference between the nominal renge amount (MJR2,250) and constant renges (MJR968) is the inflation component of the equipment's current cost increase.8. Restate-translate method:Constant Translate $ Equivalentsrenges of constantrengesIncrease in currentcost of equip., netof inflation MJR968,000 X 1/4,800 = $202Translate-restate method:CC (MJR) Translate CC ($) Restate CC/ Constant $U.S. GPLCC, net MJR 6,400,000 x 1/4,800 = $1,333 x 292.5/281.5 = $1,38512/31/X7Dep. (950,000) x 1/4,800 = (198) = (198)CC, net 7,700,000 x 1/4,800 = 1,604 x 292.5/303.5 = 1,54612/31/X8MJR 2,250,000 $ 469 $ 3599.20X7 20X8￡m ￡mTrade receivables 242 270-Trade payables (170) (160)Net monetary working capital 72 110Change in monetary working capital = ￡38 (￡110 - ￡72) Nominal Restate for Constant￡British PPI ￡Net monetary W/C 72 X 110/100 = 79.212/31/20X7Increase during year 38 = 38.0Net monetary W/C 110 X 110/120 = 100.812/31/20X8Monetary working capital adjustment = (16.4)aa This amount is added to the current cost adjustments for depreciation and cost of sales because trade receivables exceeded trade payables, thus tying up working capital in an asset that lost purchasing power.Gearing adjustment:[(TL – CA)/(FA + I + MWC)] [CC Dep. Adj. + CC Sales Adj. + MWCA]where TL = total liabilities other than trade payablesCA = current assets other than trade receivables and inventoryFA = fixed assets including investmentsI = inventoryMWC = monetary working capitalCC Dep. Adj. = current cost depreciation adjustmentCC Sales adj. = current cost of sales adjustmentMWCA = monetary working capital adjustment= [(128 – 75)/(479 + 220 + 110] [￡m 216]= [.066 ] [216]= ￡14.3The only number I could readily identify in problem 9 is inventory of 220. The next number I could come close on is fixed assets. Looks like the solution above says 479, the text for 08 indicates 473. I could not see where the 110 (MWC) came from. Neither is it clear where the other 3 items in brackets came from. The solution needs to be clearer before I can check the numbers.This gearing adjustment of ￡14.3 million is subtracted from the current cost of sales and depreciation adjustments. It represents the purchasing power gain from using debt to finance part of the firm's operating assets.a.Nominal Thai Historical Translation U.S.baht inflation c ost/constant rate dollaradjustment baht equivalentInven-tory BHT500,000 x 100/200 = BHT250,000 x .02 = $5,000b.Nominal Translation U.S. U.S. Historicalbaht rate dollar inflation c ost/constantequivalent adjustment dollarsInven-tory BHT500,000 x .02 = 10,000 x 180/198 = $9,090Sorry this seems confusing compared to number 2 where the year end index was in the numerator and either the beginning or average index was in the denominator (e.g. 420/340 or 420/263). It is not clear why we do the opposite here where the Thai price level doubles and we put the 200 in the denominator and 100 in the numerator.c. Most students will prefer the restate-translate method. This approach has merit if general and specific pricelevels move in tandem. If not, neither approach is satisfactory as both are based on a historical cost valuation framework that is generally irrelevant for investment decisions.d. For reasons enumerated in this chapter, we favor restating local currency assets for specific price changesand then translating these current cost equivalents to dollars using the current exchange rate.11. We assume that Doosan Enterprises translates its inventory at the current rate and adjusts its cost ofsales for inflation by simulating what it would have been ona LIFO basis. Two adjustments are necessarybecause local inflation impacts exchange rates used to translate foreign currency inventory balances to dollars.With FIFO inventories, a translation loss is recorded in "as reported" earnings when it is originally translatedto U.S. dollars by a current exchange rate that changed (devalued) during the period. This translation loss isan indirect charge for local inflation. The inflation adjustment (simulated LIFO charge) to increase "as reported" cost of sales to a current cost basis is an additional charge for inflation. Absent some offsettingentry, consolidated results would be charged twice for inflation. To avoid this double charge, the translation loss embodied in reported earnings is deducted from the simulated LIFO charge to arrive at a net U.S. dollarcurrent cost of sales adjustment. Steps in the adjustment process are as follows:1. FIFO inventory subject to simulated LIFO charge KRW10,920,0002. Restate line 1 to January 1 currency units(KRW10,920,000 x 100/120). The result is anapproximation of December 31 LIFO inventory KRW9,100,0003. Difference between FIFO and LIFO inventorybalances (line 1 minus line 2) is the additionallira LIFO expense (current cost adjustment)for the current year. KRW1,820,0004. Translate line 3 to dollars at the January 1exchange rate (KRW1,820,000 ÷ 900). The resultis the additional dollar LIFO expense for thecurrent year $ 2,0225. Calculate the translation loss on FIFO inventory(line 1) that has already been reflected in "asreported" results:a. Translate line 1 at Januaryexchange rate (KRW10,920,000 ÷ KRW900) $ 12,133b. Translate line 1 at December 31exchange rate (L 10,920,000 ÷ KRW1,170) $ 9,333c. The difference is the translationloss in “as reported” results $ (2,800)6. The difference between lines 4 and 5c isthe cost of sales adjustment in dollars:a. Additional dollar LIFO expense fromline 4. $ 2,022b. Less: Inventory translation loss alreadyreflected in "as reported” results (fromline 5c) $ (2,800)c. The difference is the net dollar currentcost of sales adjustment $ (778)Here, the current cost of sales adjustment is negative (i.e., reduces the dollar cost of sales adjustment). This is because the won devalued by more than the differential inflation rate (assuming a U.S. inflation rate close to zero). If the lira devalued by less than the differential inflation rate, the cost of sales adjustment would have been positive.12.1. Cost of fixed assets at 12/31 EUR20,0002. FIFO inventory at 12/31 EUR 8,0003. Total EUR28,0004. Less: Owners' equity at 12/31 EUR 2,0005. Liabilities used to financefixed assets and inventory EUR26,0006. Restate liabilities to beginningof period markka (EUR26,000 X300/390) EUR20,0007. Purchasing power gain EUR 6,0008. Purchasing power gain inpounds (EUR 6,000/EUR 1.5) ￡4,0009. Translation gain on appliedliabilities(EUR 26,000/EUR 1.5 -EUR26,000/EUR1.95) ￡4,00010. Net purchasing power gain ￡ -0-In this case the translation gain on liabilities used to finance nonmonetary assets equals the purchasing power gain because the currency devaluation matched the differential inflation of 30%. Hence, no purchasing power gains would be recognized.Case 7-1 SolutionCase 7.1 Kashmir Enterprises1.a–cHistorical Price Level HistoricalCost Adjustment Cost ConstantIncome Statement RupeesRevenues INR6,000,000 160/144 I NR6,666,667Cost of Sales 2,560,000 160/128 3,200,000Selling & Admin. 1,200,000 160/144 1,333,333Depreciation 160,000 160/128 200,000Interest 240,000 160/160 240,000Monetary gains (losses)a - 741,666Net Income INR1,840,000 INR2,435,000Balance SheetCash INR2,480,000 160/160 I NR2,480,000 Inventory 480,000 160/128 600,000Building 3,200,000 160/128 4,000,000Accu. depreciation (160,000) 160/128 (200,000) Total INR6,000,000 INR6,880,000Accounts payable INR 620,000 160/160 I NR 620,000 Notes payable 2,400,000 160/160 2,400,000 Owners' equity 2,980,000 3,860,000INR 6,000,000 INR6,880,000a Monetary gains/(losses):CashBeg. balance INR 720,000 160/128 INR1,150,000 Down payment (800,000) 160/128 (1,000,000) Sales 6,000,000 160/144 6,666,667Selling & Adm. exp. (1,200,000) 160/144 (1,333,333) Payment on account (2,200,000) 160/144 (2,444,444) Interest (240,000) 160/160 (240,000)INR 2,480,000 INR2,798,890-2,480,000Monetary loss INR (318,890)a Monetary gains and losses:Accounts PayableBeg. balance INR 420,000 160/128 INR525,000 Purchases 2,400,000 160/128 3,000,000Payments on account (2,200,000) 160/144 (2,444,444) INR 620,000 INR1,080,556- 620,000Monetary gain INR 460,556a Monetary gains/(losses):Notes PayablePurchase warehouse INR 2,400,000 160/128 INR 3,000,000 - 2,400,000Monetary gain INR 600,000Net monetary loss: INR(318,890) + INR460,556 + INR600,000 = INR741,666.Current Cost Financial StatementsHistorical Adjustment Current Cost Income Statement Cost F actor EquivalentsRevenues INR6,000,000 - INR 6,000,000Cost of Sales 2,560,000 1.3 3,328,000Selling and adm. 1,200,000 - 1,200,000Depreciation 160,000 1.4 224,000Interest 240,000 - 240,000Net Income INR 1,840,000 INR1,008,000Balance SheetCash INR 2,480,000 - INR 2,480,000Inventory 480,000 1.3 624,000Building 3,200,000 1.4 4,480,000Acc. depreciation 160,000 1.4 224,000Total INR 6,000,000 INR 7,360,000Accounts payable INR 620,000 - INR 620,000Notes payable 2,400,000 - 2,400,000Owners' equity 2,980,000 4,340,000INR 6,000,000 INR 7,360,0002. Your authors favor current cost over historical or historical cost/constant dollar financial statements. Finance theory states that investors are interested in a firm's dividend-generating potential, as the value of their investment depends on future cash flows. A firm's dividend-generating potential, in turn, is directly related to its productive capacity. Unless a firm preserves itsproductive capacity or physical capital(e.g.,plant, equipment, inventories), dividends can’t be sustained over time. Under these circumstances, current cost financial statements give investors information important to their decisions. They show the maximum resources that a firm can distribute to investors without impairing its operating capability.3.Translate-Restate MethodBalance Sheet, Jan. 1Local Currency Trans. Dollar Inflation Historical costRate Equivalents Adjustment Constant $Cash INR 920,000 .025 $23,000 - $23,000Inventory 640,000 .025 16,000 - 16,000 Total INR1,560,000 $39,000 $39,000A/P INR 420,000 .025 $10,500 - $10,500 Owners' equity 1,140,000 .025 28,500 - 28,500 Total INR 1,560,000 $39,000 $ 39,000Income StatementDec. 31Revenues INR 6,000,000 .022 $ 132,000 108/104 $ 137,077 Cost of sales 2,560,000 .022 56,320 108/100 60,825Selling & Adm. 1,200,000 .022 26,400 108/104 27,415 Depreciation 160,000 .022 3,520 108/100 3,802 Interest 240,000 .022 5,280 108/108 5,280Net Income INR 1,840,000 $ 40,480 $ 39,755 Monetary gains (losses)a - - 4,468$44,223a Monetary gains/(losses):CashBeg. Bal INR 920,000 .02 $ 18,400 108/100 $ 19,872Downpayment (800,000) .02 (16,000) 108/100 (17,280) Sales 6,000,000 .02 120,000 108/104 124,615Selling & Adm. (1,200,000) .02 (24,000) 108/104 (24,923)Payments on Acc. (2,200,000) .02 (44,000) 108/104 (45,692) Interest (240,000) .02 (4,800) 108/108 (4,800)INR 2,480,000 $ 49,600 51,792-49,600Monetary loss $ (2,192) Accounts PayableBeg. Bal. INR 420,000 .02 $ 8,400 108/100 $ 9,072Purchases 2,400,000 .02 48,000 108/100 51,840Pmt. on acc. (2,200,000) .02 (44,000) 108/104 45,692INR 620,000 $ 12,400 $ 15,592- 12,400Monetary gain $ 2,820Notes payablePur. W/house Rpe 2,400,000 .02 $ 48,000 108/100 $ 51,840 48,000Monetary gain $ 3,840Netmonetary gain: $(2,192) + $2,820 + $3,840 = $4,468.Balance Sheet Local Trans. Dollar Inflation Historical cost- Dec. 31 Currency Rate Equiv. Adjustment Constant $Cash INR 2,480,000 .02 48,600 108/108 $ 48,600 Inventory 480,000 .02 9,600 108/100 10,368 Building 3,200,000 .02 64,000 108/100 69,120Acc. Dep. 160,000 .02 3,200 108/100 3,456Total INR 6,000,000 $120,000 $ 124,632Acc. payable 620,000 .02 12,400 108/108 $ 12,400Notes payable 2,400,000 .02 48,000 108/108 48,000Trans. adj.b - (9,380) (9,978)Owners' equity c 2,980,000 68,980 74,210Total INR 6,000,000 $120,000 $124,632________________________________________________________________ __b Translation adjustment:Beginning net assets Rpe 1,140,000 (.02 - .025) = $ (5,700) X 108/100 = $(6,156)Increase in net assets Rpe 1,840,000 (.02 - .022) = (3,680) X 108/104 = $(3,822)$(9,380) $(9,978) c Balancing residualRestate - Translate MethodBalance Sheet Local Inflation Historical Cost- Trans. D ollar Jan 1. Currency Adjustment Constant rupee Rate equivalents Cash INR 920,000 128/128 INR 920,000 .025 $ 23,000 Inventory d 640,000 128/128 640,000 .025 16,000Total INR1,560,000 INR1,560,000 $ 39,000Acct. payable INR 420,000 128/128 INR 420,000 .025 $ 10,500Owner's equity 1,140,000 1,140,000 28,500Total INR 1,560,000 INR 1,560,000 $ 39,000d Assumes inventory acquired near year-end.Income StatementYear ended Dec. 31Revenues INR 6,000,000 160/144 INR 6,666,666 .022 $ 146,667Cost of Sales 2,560,000 160/128 3,200,000 .022 70,400 Selling & Adm. 1,200,000 160/144 1,333,333 .022 29,333 Depreciation 160,000 160/128 200,000 .022 4,400Interest 240,000 160/160 240,000 .022 5,280Net Income INR1,840,000 INR1,693,334 $ 37,254 Monetary gains(losses)a- 741,666 .022 16,317INR2,435,000 $ 53,571Balance SheetDec. 31Cash INR 2,480,000 160/160 INR 2,480,000 .02 $ 49,600Inventory 480,000 160/128 600,000 .02 12,000Building 3,200,000 160/128 4,000,000 .02 80,000Acc. deprec. 160,000 160/128 200,000 .02 4,000Total INR 6,000,000 INR 6,880,000 $137,600Acc. payable INR620,000 160/160 INR 620,000 .02 $ 12,400 Notes payable 2,400,000 160/160 2,400,000 .02 48,000Owner's equity 2,980,000 3,860,000 87,770 Translation adj.b - (10,570)Total INR 6,000,000 INR 6,880,000 $137,600________________________________________b Beginning net assets INR1,140,000 (.02 - .025) = $ (5,700)Change in net assets 2,435,000 ).02 - .022) = $(4,870)$(10,570)Both methods are inadequate for American investors because they are based on the historical cost valuation framework. A better reporting procedure is to restate local accounts to their current cost equivalents, then translate these amounts to the reporting currency using the year-end (current) foreign exchange rate. This is illustrated here.Restate (current cost)/Translate (current rate)Cash INR 920,000 - INR 920,000 .025 $ 23,000Inventory 640,000 - 640,000 .025 16,000Total INR 1,560,000 INR1,560,000 $ 39,000Acc. payable INR 420,000 - INR 420,000 .025 $ 10,500Owner's equity 1,140,000 - 1,140,000 28,500。

酒店中常用的英文缩写

酒店中常用的英文缩写部门 DEPARTMENT 简称：DEPT职位 POSITION 简称： POS行政办 EXECUTIVE 简称： OFFICE EO财务部 FINANCE DEPARTMENT 简称：FIC会计部 ACCOUNTING 简称：ACCT简称：PD采购部 PURCHASING DEPARTMENT酒水仓 BEVERAGE STORE食品仓 FOOD STORE日用品仓 GENERAL STORE市场及销售部 SALES & MARKETING DEPARTMENT简称：S & M 前厅部 FRONT OFFICE DEPARTMENT 简称：F.O (F/O)管家部 HOUSEKEEPING 简称：HSKP洗衣房 LAUNDRY ROOM 简称：LR布草房 LINEN ROOM游泳池 SWIMMING POOL餐饮部 FOOD & BEVERAGE DEPARTMENT 简称： F & B中餐厅 CHINESE RESTAURANT 简称： CHN REST西餐厅 WEST RESTAURANT 简称： WEST REST日本餐厅 JAPANESE RESTAURANT大堂吧 LOBBY BAR送餐部 ROOM SERVICE 简称：RM SVC宴会中心 BANQUET CENTRE会议厅 CONFERENCE HALL管事部 STEWARD娱乐部 ENTERTAINMENT DEPARTMENT简称：ENT夜总会 NIGHT CLUB桑拿 SAUNA健身中心 HEALTH CENTRE美容美发中心 BEAUTY & BARBER CENTRE保龄球室 BOWLING BALL工程部 ENGINEERING DEPARTMENT ENG保安部 SECURITY DEPARTMENT SEC简称： HR 人力资源部 HUMAN & RESOURCES DEPARTMENT培训部 TRAINING DEPARTMENT员工饭堂 STAFF CANTEEN员工宿舍 STAFF DORMITORY医务室 CLINIC ROOM图书馆 LIBRARY前厅各分部：接待处 RECEPTION 简称： RECP行政楼层 EXECUTIVE FLOOR 简称： E/F询问处 INFORMATION 简称： INFM订房部 RESERVATION 简称：RESV总机房 OPERATOR / TELEPHONE ROOM 简称： OPT礼宾部 CONCIERGE 简称： CON商务中心 BUSINESS CENTRE 简称： BC大堂副理 ASSISTANT MANAGER 简称： AM车队 TRANSPORTATION 简称：TRA账务处 CASHIER 、 ACCOUNTING 简称： DESK大堂 LOBBY楼层 FLOOR / F后勤办公室 BACK OFFICE员工通道 STAFF ENTRANCE职位：总经理 GENERAL MANAGER 简称：GM行政助理 ASSISTANT EXECUTIVE MANAGER 简称： AEM行政秘书 EXECUTIVE SECRETARY财务总监 FINANCIAL CONTROLLER 简称： FC总会计师 CHIEF ACCOUNT成本会计师 COST ACCOUNT采购部经理 PURCHASING MANAGER 简称：PURCHASING MGR市场及销售总监 DIRECTOR OF SALES & MARKETING 简称：DOS市场及销售副总监 ASSISTANT DIRECTOR OF SALES & MARKETING简称：ADOS 市场及销售部经理 SALES MANAGER销售员 SALES 简称：SALES前厅经理 FRONT OFFICE MANAGER 简称： FOM前厅副经理 ASSISTANT FRONT OFFICE MANAGER 简称：AFOM大堂副经理 ASSISTANT MANAGER 简称： AM接待员 RECEPTIONIST / RECEPTION简称： CLERK订房员 RESERVATION CLERK RESV CLERK行李员 BELL BOY / BELL MAN门童 DOORMAN接线生 OPERATOR司机 DRIVER行政管家 EXECUTIVE HOUSEKEEPER 简称： EH简称：AEH副行政管家 ASSISTANT EXECUTIVE HOUSEKEEPER助理管家 ASSISTANT HOUSEKEEPER 简称：AH楼层服务员 ROOM ATTENDANT 简称： ATT餐饮总监 DIRECTOR OF FOOD & BEVERAGE 简称： DOFB行政总厨 EXECUTIVE SOUS 简称：CHEF点心总厨 DIM SUM 简称：CHEF、人力资源部经理 HUMAN & RESOURCES MANAGER简称： HR MGR总工程师 CHIEF ENGINEER值班工程师 DUTY ENGINEER保安部经理 SECURITY MANAGER保安主管 CHIEF SECURITY经理 MANAGER 简称：MGR主任 SUPERVISOR 简称：SUP领班 CAPTAIN 简称： CAP秘书 SECRETARY文员 CLERK服务员 WAITER行政值班经理 EXECUTIVE ON DUTY MANAGER 简称：EOD 值班经理 DUTY MANAGER 简称：DM酒店常用术语：接待处用语：入住 CHECK – IN 简称： C / I退房 CHECK – OUT 简称： C / O预订 BOOKING 、 RESERVATION 简称：BKG预期抵店 ARRIVAL 、 DUTE IN 简称：ARL提前抵达 EARLY ARRIVAL预期离店 DEPARTURE 、 DUTE OUT 简称：DEPT确认 CONFIRMATION CONFIRM再次确认 RE - CONFIRM RE-CFRM取消 CANCELLATION CANCELL订金 DEPOSIT价格 RATE RTE价钱 PRICE封房 BLOCK续住 EXTENSION EXTEN客类：顾客、宾客 CLIENT 、 GUEST散客 WALK IN W / I 、 FIT团队 GROUP GRP商务客 COMMERCIAL GUEST COMM GST商务合同 CORPORATE CONTRACT长住客 LONG STAY GUEST 简称： L / S GST 贵宾 VERY IMPORTANT PERSON VIP旅行社 TRAVEL AGENT 简称： TVL AGT自用房 HOUSE USE 简称： H/U公司 COMPANY COM付帐(动) PAY付帐(名) PAYMENT]信用卡 CREDIT CARD现金 CASH尽快 AS SOON AS POSSIBLE ASAP资料 INFORMATION INFM电话 TELEPHONE TEL传真 FACSIMILE FAX电传 TELEX TLX电报 CABLE CBL地址 ADDRESS ADD复印(机) COPY (MACHINE)网络 INTERNET电脑 COMPUTER打印机 PRINTER机票 FLIGHT TICKET打字 TYPING充电 CHARGE A BATTERY充电器 CHARGER留言 MESSAGE内播电影 IN-HOUSE MOVIE对方付费电话 COLLECT CALL酒店帐 HOUSE ACCOUNT H/A国内长途 ------ IDD国际长途 ------ DDD市内电话 CITY CALL分机 EXTENSION EXTN服务台 COUNTER唤醒服务 WAKE UP CALL叫早服务 MORNING CALL请勿打扰 DO NOT DISTURB DND天气 WEATHER出租车 TAXI面包车 VEHICLE中巴 COACH报纸 NEWSPAPER信件 MAIL电视 TELEVISION TV背景音乐 BACK GROUND MUSIC小酒吧 MINI BAR冰箱 REFRIGERATOR客房保险箱 MINI SAFE / PERSONAL 简称： SAFE 吹风筒 HAIR DRYER电热水壶 ELECTRIC HEATING KETTLE中央空调 INDIVIDUAL CONTROLLED AIR-CONDITION 洗衣 LAUNDRY干洗 DRY-CLEANING熨烫 VALET SERVICE失物招领 LOST AND FOUND早餐 BREAKFAST B’FAST美式早餐 AMERICAN BREAKFAST 简称：ABF欧陆式早餐 CONTINENTAL BREAKFAST 简称： CBF 东方式早餐 ORIENTAL BREAKFAST OBF午餐 LUNCH LNH晚餐 DINNER DNR人民币 ------ RMB港币 ------ HKD美元 ------ USD按摩 MASSAGE蒸汽浴 STEAM BATH邻近房 ADJOINING ROOM付款方式 ADVANCE PAYMENT礼仪 AMENITY住房平均价格 AVERAGE ROOM RATE A.R.R收款的指令 BILLING INSTRUCTION取消 CANCELLATION不收费房 COMPLIMENTARY COMP连通房 CONNECTING续住 EXTENSION加床 EXTRA BED预报 FORECAST客人帐单 GUEST FOLIO管家部报表 HOUSEKEEPING REPORT加入 JOIN-IN超过退房时间 LATE CHECK-OUT记事本 LOG BOOK净价 NET RATE坏房 OUT OF ORDER O.O.O包价 PACKAGE长包房 PERMANENT ROOM门市价 RACK RATE登记 REGISTER登记卡 REGISTRATION CARD转房 ROOM CHANGE房价 ROOM RATE房间种类 ROOM TYPE团体住房名单 ROOM LIST同住 SHARE WITH旅行社 TRAVEL AGENT升级 UPGRADE空房 VACANT ROOM贵宾 VERY IMPORTANT PERSON V.I.P营业利润贡献 Contribution to Trading Profit 简称： CTP总经营利润 Gross Operating Profit 简称：GOP平均每间可卖房间的收入 Revenue Per Available Room简称：RevPAR 收入产生指数 Revenue Generation Index 简称：RGI宾客意见调查系统 Guest Satisfaction Tracking System简称： GSTS 员工满意度调查 Employee Satisfaction Pulse Survey 简称：ESPS 全面质量管理 Total Quality Management 简称：TQM质量评估系统 Quality Evaluation System 简称：QES酒店经营管理系统 Property Management System 简称： PMS(标准经营程序) Standard Operating Procedures 简称：SOP重要公司协议价 (Key Negotiated Rate) 简称：KNR当地"公司协议价 (Local Negotiated Rate) 简称：LNR合作协议申请 Request for Proposal 简称：RFP 散客 Fully Independent Traveler 简称：FIT综合经营计划 Integrated Business Plan 简称：IBP预订中心的预订系统 Virtual Central Reservation Office 简称：VCRO欢迎您的下载，资料仅供参考！致力为企业和个人提供合同协议，策划案计划书，学习资料等等打造全网一站式需求。

a level accounting教材

a level accounting教材在A-Level课程中，会计学是一门非常重要的学科，它不仅能为学生日后的职业发展打下基础，还能帮助他们更好地理解商业世界。

为了帮助同学们备战A-Level会计学考试，我们精选了一些优秀的A-Level会计学教材，供大家参考。

A-Level会计学教材推荐1. CIE A-Level Accounting Coursebook作者：Markus Stiehl这本书是与剑桥国际A-Level会计教学大纲（9709）相匹配的教材。

它涵盖了会计基础、财务报表、会计周期、记账方法等方面的内容，旨在帮助学生掌握会计学的基本知识和技能。

2. AQA A-Level Accounting Book作者：Johnstone、Knight和Wilson这本书是与AQA考试局的A-Level会计教学大纲相匹配的教材。

它以实用性和易懂性为特点，介绍了会计学的基本概念和原则，并附有丰富的案例分析和练习题，有助于巩固所学知识。

3. OCR AS and A-Level Accounting Book作者：David Oldfield这本书是与OCR考试局的AS和A-Level会计教学大纲相匹配的教材。

它详细阐述了会计学的基本原理，包括财务报表、会计周期、商业环境等，同时提供了一系列实用的案例分析和练习题，供学生练习。

4. Cambridge International AS and A-Level Accounting Coursebook作者：Glen L. Gray这本书是与剑桥国际AS和A-Level会计教学大纲（9709）相匹配的教材。

它涵盖了会计学的基本概念、财务报表、会计周期等方面的内容，同时附有丰富的练习题和案例分析，有助于提高学生的会计技能。

5. Accounting for A-Level作者：Johnstones和Wilson这本书是为A-Level会计学课程编写的一本教材。

国际会计第七版英文版课后答案(第二章)(可编辑修改word版)

Chapter 2Development and ClassificationDiscussion Questions1.a)Sources of finance. Where capital markets/shareholders are the principal source offinance, accounting focuses on profitability, stewardship, and a fair presentation ofresults and financial position. There are high levels of disclosure in publishedfinancial statements. When banks are the principal source of finance, accountingtends to be conservative and disclosures are usually relatively low (banks have directaccess to information). When governments are the principal source of finance,accounting is aimed at the information needs of government agencies such as taxcollection, assembling macroeconomic statistics, or compliance with macroeconomicgoals.b)Legal system. Accounting in code law countries tends to be highly prescriptive,detailed, and procedural, designed to cover every possible circumstance. Accountingstandards are a part of national laws. Accounting in common law countries is moreadaptive and innovative and tends to allow more judgment to suit the circumstance.Accounting standards are set in the private sector.c)Taxation. This tends to parallel the legal system. In common law countries (whereaccounting standards are set by the accounting profession), accounting and taxationare separate. In code law countries (where accounting standards are national laws),accounting and taxation are essentially the same.d)Political and economic ties. Accounting technology and expertise is imported andexported based on the contacts that nations have with each other through commerce,conquest, etc.e)Inflation. Historical cost accounting is the basis for initially recording transactionsaround the world. Inflation puts stress on the historical cost principle. Whereinflation is high, accounting adjusts recorded amounts to reflect price level changes.f)Level of economic development. This factor defines the difficulty and types of theaccounting issues that are faced in a nation. Accounting is complex where businesstransactions are complex (in highly developed economies); it is simpler wheretransactions are simpler (in less developed countries).g)Education levels. This factor defines the limits of accounting sophistication in anation. Accounting cannot get very sophisticated where education levels arerelatively low (unless the country imports accounting training or its citizens are sentelsewhere for it).2.The text lists seven environmental circumstances asserted to have direct effects on accountingdevelopment. We judgmentally rank the list as follows:a.Sources of financeb.Legal systemc.Taxationd.Political and economic tiescation levelsf.Inflationg.Level of economic developmentStudents may wish to alter this ranking and justify their own. It should also be pointed out that the rankings for certain countries may be quite different.Capital markets as a source of finance are driving accounting development today. This phenomenon is the reason why the European Union decided to abandon its own effort at developing European accounting principles and require IFRS for EU listed companies. It is behind the convergence movement described in Chapter 8. The chapter argues that the fair presentation versus legal compliance classification describes accounting today better than the one based on legal system. This argument is consistent with sources of finance as the driver of accounting development today.Level of economic development exerts only a moderate effect. This is because developing economies tend to import accounting technologies (and training) from developed countries. For example, many countries in emerging market economies are adapting sophisticated Western accounting systems in order to enhance their development efforts.3.Culture underlies institutional and other arrangements in a nation that directly affect accountingdevelopment. Individualism, power distance, and uncertainty avoidance are likely to be the most important influences. Individualism, small power distance, and weak uncertainty avoidance tend to be correlated with and found in common law countries with fair presentation accounting. There is a strong accounting profession, accountants rely on professional judgment, and capital markets are the principal source of finance.Collectivism, large power distance, and strong uncertainty avoidance tend to be correlated with and found in code law countries with legal compliance accounting. The profession is relatively weak - accounting is influenced by law, instead. Accounting is more conservative and prescriptive, and banks and governments are the principal sources of finance.4.This question is controversial and there is no consensus of opinion at present. However, as notedin the answer to question 3, culture exerts a second-order effect on accounting. It underlies institutional and other arrangements in a nation that directly affect accounting development. We feel that economic and legal factors are more clearly linked to specific features of accounting, whereas cultural variables are linked to broader generalizations about accounting. Thus, we argue that economic and legal factors explain national differences in accounting practice better than culture.5.Generally speaking, these patterns of accounting development are still valid today, but less sothan in 1967. The descriptions of accounting in the chapter for the respective exemplar countries are broadly true. However, note that the Netherlands is really the only country that can be described by the microeconomic pattern. There are also only a few countries that follow the macroeconomic pattern. The independent discipline approach is not as ad hoc as it was in 1967.Most of these countries (in particular, the United Kingdom and United States) now have conceptual frameworks to guide accounting policy formulation. The uniform accounting approach is less relevant as more and more countries privatize their economies.We expect these patterns to break down in the future as financial reporting converges around International Financial Reporting Standards. As discussed in this chapter, the trend is for fair presentation accounting at the consolidated financial statement level. The macroeconomic and the uniform approaches will persist in certain code law countries at the individual company financial statement level (for example, for tax collection purposes). The microeconomic andindependent discipline approaches have always been fair presentation oriented. So, they will likely disappear due to convergence, as discussed above.6.Conservative measurements and secretive disclosures tend to be correlated. At the same time,less emphasis on conservative measurements and transparent disclosures also tend to be correlated. This is largely to due to the principal source of finance in a country. Banks and governments are concerned about the safety net that conservatism affords; and because they tend to have direct access to information, public disclosure is less important. Capital markets demanda fair presentation of financial position and results of operations along with high levels ofdisclosure7.Classifications are a way of viewing the world. They abstract from complexity and revealfundamental characteristics that members of the group have in common and that distinguish the various groups from each other. Classifications provide the basic structure for understanding what is alike and what is different in accounting around the world. By identifying similarities and differences, our understanding of accounting systems is improved.8.Judgmental classifications rely on knowledge, intuition and experience. Empirically derivedclassifications apply statistical methods to databases of accounting principles and practices around the world. This chapter discusses Mueller’s four approaches in acc ounting development (1967), which is essentially a judgmental classification of accounting. The fair presentation versus legal compliance classification and classifications based on legal systems are also judgmental, though largely supported by empirical data.9.The chapter discusses three major accounting classifications. The first is the one by Mueller(1967):•Macroeconomic approach, where accounting practice is designed to enhancemacroeconomic goals;•Microeconomic approach, where accounting develops from the principles ofmicroeconomics;•Independent discipline approach, where accounting develops from business practices based on judgment and trial-and-error; and•Uniform approach, where accounting is standardized so it can be used as a tool of administrative control by central government.The second classification is the one based on legal systems, which closely parallels the third classification based on practice systems. Generally speaking, the features of common law accounting (legal system) are those described for fair presentation accounting (practice system).The features of code law accounting (legal system) are those described for legal compliance accounting (practice system).Fair presentation (common law) emphasizes substance over form and is oriented toward the decision needs of external investors. Thus, it is capital markets oriented. Financial statements help investors judge managerial performance and predict future cash flows and profitability.Extensive disclosures provide additional relevant information for these purposesLegal compliance (code law) accounting is designed to satisfy government-imposed requirements such as calculating taxable income or complying with the national governmen t’s macroeconomic plan. The income amount may also be the basis for dividends paid to shareholders and bonusespaid to employees. Conservative measurements ensure that prudent amounts are distributed and smooth income brings stable tax, dividend and bonus payouts.As noted above, fair presentation accounting is associated with common law countries, while legal compliance accounting is associated with code law countries. However, many companies from code law countries now follow International Financial Reporting Standards in their consolidated financial statements. IFRS are based on the principles of fair presentation.10.The chapter contends that many accounting distinctions at the national level are becoming blurredbecause of global capital market pressures. An increasing number of companies are listing on multiple stock exchanges. This has pressured accounting policy makers around the world to harmonize (converge) reporting requirements. This has also pressured companies to devise financial reporting practices that satisfy multiple requirements and user groups. At the same time, some code law countries where accounting is aimed at legal compliance have dual reporting.Consolidated financial statements are aimed at fair presentation (IFRS), while individual company financial statements continue to be aimed at legal compliance.11.Our preference for classifying based on fair presentation versus legal compliance over legalsystem follows from the answer to question 10. Many companies from code law countries now prepare two sets of financial statements. Consolidated financial statements follow fair presentation principles, while individual company accounts follow legal compliance principles.Listed companies from the European Union now follow International Financial Reporting Standards in their consolidated financial statements. IFRS are based on fair presentation principles.12.In your authors’ opinion, the prospects for the harmonization of national systems of accounting islow. As the chapter demonstrates, accounting satisfies the information needs of its users and develops in response environmental circumstances. Unless these forces converge, there is little reason to expect accounting to converge. Also, taxation is a fundamental influence on accounting in many countries - it is the reason accounting exists in the first place. Unless governments are willing to relinquish their sovereignty over such matters, national accounting systems cannot be harmonized. At the national level, accounting systems are too entrenched.However, the story is different at the transnational (or international) level for consolidated financial statements. Convergence is occurring here, driven by the globalization of capital markets. Companies now seek capital from around the world and must appeal to the information needs of a worldwide investor group. The type of information these investors seek is similar, regardless of where they reside. This same force drove the European Union requirement for listed companies to comply with International Financial Reporting Standards starting in 2005.This means dual reporting for many companies, especially those from European countries where accounting is legalistic and tax-driven. Local financial statements will be prepared in compliance with local laws and accounting standards, but secondary financial statements will be prepared for the worldwide investor group. Consolidated financial reporting is converging onto fair presentation based on IFRS.Exercises1. a. The dominant factor influencing accounting development in Taiwan is political andeconomic ties, namely those with the United States since the 1950s. In 1949, defeated bythe Communists, Chiang Kai-shek fled to Taiwan and set up a provisional governmentthere. Taiwan soon began receiving substantial U.S. economic aid to prevent the furtherspread of Communism. Taiwan is a dynamic capitalist economy and the United States isthe country’s largest trading partner. Taiwan is an economic power that is a leadingproducer of high-technology goods. Services make up more than two-thirds of GDP.Nevertheless, small, family owned businesses are the basis for the economy. Taiwan hasa credit-based, rather than capital markets-based financial system. Its (Germanic) codelaw legal system dates from the years (1895 – 1945) when Taiwan was a Japanese colony.Given the influence of the United States, it can be expected that taxation will not directlyimpact financial reporting (despite the code law legal system). Additional developmentfactors are a low level of inflation and high education level (literacy rate approaching 100percent).b.Overall, one would expect accounting to resemble U.S. accounting, emphasizing a fairpresentation and full disclosure as opposed to compliance with legal requirements.Accountants can be expected to exercise judgment and not merely follow the rules or thetax laws.c.The above prediction is accurate according to the fifth edition of this textbook (PrenticeHall, 2005) and Ronald Ma, ed., Financial Reporting in the Pacific Asia Region,Singapore: World Scientific Publishing (1997). Accounting in Taiwan is largely basedon U.S. accounting. Accounting standard-setting is a private sector activity, modeled afterthe U.S. Financial Accounting Standards Board.2.Gambia and India (both former British colonies) have common law legal systems, while Belgium,Czech Republic, Mexico, Senegal (former French colony), and Taiwan have code law legal systems. China’s legal system is not derived from code law, but more closely resembles code law than common law. Gambia and India have fair presentation accounting because of the British colonial influence and Senegal has legal compliance accounting because of French colonial influence. As members of the European Union, both Belgium and the Czech Republic require International Financial Reporting Standards (fair presentation) for consolidated financial statements. China is also basing its reporting standards on IFRS. Because of U.S. influence, Mexico and Taiwan have fair presentation accounting.3.For each of the three comparative accounting development patterns to be identified, four U.S.examples are listed. (Students were asked to identify two examples each.)a.The macro-economic pattern1.Accounting for investment tax credits.2.Disclosure of corporate social responsibility activities.3.Selected application of accelerated depreciation methods.4.Disclosure of oil and gas reserves by oil companies.b.The micro-economic pattern1.Mark to market accounting for financial instruments.2.Segmental financial reporting according to FASB Statement No. 131.3.Pension accounting and disclosure of pension liabilities.4.Industry-specific accounting, e.g., for banks, insurance companies, public utilities,railroads.c.The independent discipline approach1.The realization principle.2.Reporting of business income as a residual between realized revenues andrecognized expenses for a given period.3.Classifying assets and liabilities as current and noncurrent on the balance sheet.4.Foreign exchange translation according to FASB Statement No. 52.4.The answer to the question depends on the countries and the companies chosen. In general, onewould expect students to discuss measurement and disclosure issues. Accounting in common law countries is based on fairness and substance over form, whereas in code law countries it stresses legal compliance, including tax laws. Thus, accounting and tax are separate in the former, but the same in the latter. Specific practices where this distinction is most obvious is in accounting for depreciation, leases, pensions, and deferred income taxes. Accounting in code law countries tends to be more conservative and it is common to see discretionary reserves used to smooth income. Of course, these are broad generalizations.Disclosure involves the amount and type. Generally, higher levels are found in common law countries and lower levels are found in code law countries. It is difficult to generalize about disclosure types. Students ought to compare such issues as disclosure of accounting policies, segment information, contingent liabilities, and social and nonfinancial matters.This exercise also lends itself to a group project where one student takes one company and another student takes the other. The length of the answer will vary depending on how in-depth the instructor wants to be.One reason why the similarities and differences may not conform to expectations is due to the type of company chosen. Large multinational corporations, especially from code law countries, often have different reporting than their domestic counterparts. Their disclosure levels are more extensive and they may not use home GAAP. All EU listed companies must now prepare consolidated statements using IFRS. It is useful to compare the two companies chosen on the basis of size, extent of multinational operations, and international listing status. Also note that the Netherlands has always followed “common law” accounting (i.e., fair presentation) even though it is a code law country.5.At the time of writing, the 2005 annual report was the most recent one available. The stockexchanges with the most foreign listed companies were New York (452), London (334), Nasdaq (332), Euronext (293), and Luxembourg (206). The attraction of New York, London, and Nasdaq for foreign companies is that these are the major capital markets in the world. Euronext and Luxembourg attract many European companies.The stock exchanges with the highest proportion of foreign to total listed companies were Luxembourg (84%), Bermuda (66%), Mexico (54%), Swiss (29%), and Euronext (23%). As noted, Luxembourg and Euronext attract many European companies. The Swiss Exchange does as well. Bermuda is known as a financial center with easy laws, which may explain its high proportion. The Mexican Exchange attracts companies from Central and South America.6.Arguably the most serious obstacle to accounting harmonization in the EU is that common andcode law countries are both represented. This determines how standards are set and the basic orientation of accounting. However, differences can be noted in every developmental factor discussed in the chapter, including the cultural dimension. Nevertheless, the economic and political ties among the member countries are a dominant force supporting EU harmonization —the group is committed to economic integration, including a single currency, the euro. EU countries are converging on fair presentation accounting for consolidated financial statements, propelled by market forces such as these.7.For the ten countries joining the EU in 2004 and the two countries joining in 2007, the level ofeconomic development and the fact that they lack developed capital markets (system of finance) is likely to be the most serious obstacles for achieving accounting harmonization with the rest of the EU. Most of these countries are still expanding their market economies from ones that were centrally planned. Accounting expertise is also still being developed.8. a. The individualism scores are: China (20), the Czech Republic (58), France (71),Germany (67), India (48), Japan (46), Mexico (30), the Netherlands (80), the UnitedKingdom (89), and the United States (91).b.Countries with high individualism scores are France, Germany, the Netherlands, UnitedKingdom, and United States. Countries with medium individualism scores are CzechRepublic, India, and Japan. Countries with low individualism scores are China andMexico.c.According to Gray, high individualism is associated with professionalism, flexibility,optimism, and transparency. (Note to instructors: After reading Chapters 3 and 4,students will recognize that these characterize Dutch, U.K. and U.S. accounting, but notFrench and German accounting. [Note also that the Netherlands, U.K., and U.S. have thehighest individualism scores of all 10 countries.]) According to Gray, low individualismis associated with statutory control, uniformity, conservatism, and secrecy. (Note toinstructors: After reading Chapters 3 and 4, students will recognize that only statutorycontrol and (to some extent) secrecy is associated with China, while only secrecy isassociated with Mexico. Gray’s prediction for these two countries is not very good.)Medium individualism scores presumably predict accounting values ‘in the middle’.(Note to instructors: After reading Chapters 3 and 4, students will recognize that theCzech Republic, India, and Japan do not really fall ‘in the middle’ on Gray’s accountingvalues. The Czech Republic and Japan generally reflect the accounting values ofstatutory control, uniformity, conservatism, and secrecy. India is generally associatedwith professionalism, flexibility, optimism, and transparency.)9. a. The uncertainty avoidance scores are: China (30), the Czech Republic (74), France (86),Germany (65), India (40), Japan (92), Mexico (82), the Netherlands (53), the UnitedKingdom (35), and the United States (46).b.Countries with high uncertainty avoidance scores are the Czech Republic, France,Germany, Japan, and Mexico. Countries with medium uncertainty avoidance scores areIndia, the Netherlands, and the United States. Countries with low uncertainty avoidancescores are China and the United Kingdom.c.According to Gray, high uncertainty avoidance is associated with statutory control,uniformity, conservatism, and secrecy. (Note to instructors: After reading Chapters 3 and4, students will recognize that Gray’s prediction describes accounting well for the CzechRepublic, France, and Germany. The prediction describes Japan before the “Big Bang”,but less so now. Except for secrecy, the prediction does not describe accounting valuesin Mexico.) According to Gray, low uncertainty avoidance is associated withprofessionalism, flexibility, optimism, and transparency. (Note to instructors: Afterreading Chapters 3 and 4, students will recognize that these are features of U.K.accounting, but not China.) Medium uncertainty avoidance scores presumably predictaccounting values ‘in the middle’. (Note to instructors: After reading Chapters 3 and 4,students will recognize that India, the Netherlands, and the United States have similaraccounting values to the United Kingdom. Gray’s prediction for these three countries isnot very good.)d.The only consistent prediction between Exercise 8 (individualism) and Exercise 9(uncertainty avoidance) is that for the United Kingdom. Gray’s model linking cultureand accounting is valid for the U.K. The model’s prediction s are exactly opposite forChina, but in neither case does it predict China’s accounting values very well. Based onindividualism, the model does a “good job” predicting the accounting values in theNetherlands, U.K., and U.S., but a “poor or moderate” job predicting accounting valuesin the other seven countries. Based on uncertainty avoidance, the model does a “good job”predicting accounting values in the Czech Republic, France, Germany, Japan, and U.K.,but a “poor or moderate” job prediction accounting in the other five countries. Overall,one would have to conclude that the success of Gray’s model linking culture andaccounting is modest at best.10.The following table summarizes the use of IFRS by domestic listed companies in the 10 countriesidentified, according to the IAS Plus Web site at the time of writing:The five countries of the European Union require their domestic listed companies to use IFRS.This EU requirement is discussed in the chapter. India, Japan, Mexico, and the United States require their domestic listed companies to use national GAAP, not IFRS. The implication is that these four countries believe that their own national standards better reflect financial reporting to various constituencies than do IFRS. (However, Chapter 4 discusses that these four countries are converging their national GAAP with IFRS.) China requires some domestic listed companies to use IFRS. The inference is that IFRS are relevant for some but not all domestic Chinese companies. (Chapter 4 notes that Chinese companies issuing so-called B-shares (shares to foreign investors) must prepare English language financial statements. One might infer that companies with B-shares would also be required to use IFRS. Chapter 4 also discusses that China is converging national GAAP to IFRS.)11.France: With banks and government as the main sources of finance, we can expectconservative and uniform measurements. With code law legal system, the focus is on complying with the law. The link to taxation means that measurements are also tax-oriented. Political and economic ties with the rest of Europe suggest that French accounting may influence and be influenced by other European countries. Low inflation indicates a low likelihood of inflationadjustments. The levels of economic development and education suggest sophisticated accounting.India: With the government and stock market as the main sources of finance, we can expect a mixed (and inconsistent) orientation –uniformity but also fair presentation. The common law legal system and separation between tax and financial accounting indicate fair presentation accounting. The political and economic ties to the U.K. and U.S.A. also suggest fair presentation accounting. (Economic ties to China are probably unimportant in describing Indian accounting.) Low inflation suggests a low likelihood of inflation adjustments. The levels of economic development and education suggest less complex accounting standards and practices.Japan: With banks as the main source of finance, we can expect conservative accounting measurements. With the code law legal system, focus is on complying with the law. The link to taxation means that measurements are also tax-oriented. Political and economic ties to theU.S.A. indicate some U.S. influence on Japanese accounting. (Economic ties to China are probably unimportant in describing Japanese accounting.) Low inflation suggests a low likelihood of inflation adjustments. The levels of economic development and education suggest sophisticated accounting.United Kingdom: With the stock market as the main source of finance, we can expect fair presentation accounting. Fair presentation accounting can also be expected because the U.K.has common law, and taxation and accounting are separate (i.e., not linked). Political and economic ties to the U.S.A. and Europe suggest accounting influence is felt to and from both areas. Low inflation indicates a low likelihood of inflation adjustments. The levels of economic development and education suggest sophisticated accounting.United States: With the stock market as the main source of finance, we can expect fair presentation accounting. Fair presentation accounting can also be expected because the U.S.A.has common law, and taxation and accounting are separate (i.e., not linked). Political and economic ties to the Canada and Mexico most likely mean that these two countries are influenced by the U.S.A., rather than the other way around. Low inflation indicates a low likelihood of inflation adjustments. The levels of economic development and education suggest sophisticated accounting.12.The irreversible globalization of capital markets and increasing trend of multiple stock exchangelistings is causing more and more companies to adopt fair presentation accounting for their worldwide audience. The chapter notes how accounting distinctions are becoming blurred.Chapter 3 also notes how Germany and Chapter 4 shows how Japan have established standard setting organizations for the purpose of adopting reporting standards for consolidated financial statements that are in line with International Financial Reporting Standards. Standard setters in the United States, Canada, Australia, and many other countries are committed to converging their financial reporting with IFRS. Finally, the European Union now requires EU-listed companies to follow IFRS in their consolidated financial statements from 2005 on.Thus, we believe that the two-way split proposed in the chapter (fair presentation versus legal compliance) will be even more significant than it is now. Countries already oriented toward fair presentation (such as Australia, Canada, the Netherlands, United Kingdom, United States) will converge around International Financial Reporting Standards. Regardless of the home country of the company concerned, consolidated financial statements will be prepared on a fair presentation/full disclosure basis, as can be seen in the EU 2005 requirement. Countries that。

国际会计第七版英文版课后答案(第一章)

Chapter 1IntroductionDiscussion Questions1.In the domestic case, accounting is an information service that provides financialinformation about a domestic entity to domestic users of that information. Internationalaccounting is distinctive in that the entity being reported on is either a multinationalcompany with operations and transactions that transcend national boundaries or involves an entiiy with reporting obligations to readers who are located outside the reportingentity’s country of domicile.2.Advantage: Some might argue that measurement, disclosure, and external auditing arethree distinct (although related) processes, involving different members of the company.For example, corporate attorneys often are involved in disclosure issues, but seldomintervene in measurement issues. The Board of Directors works with the external auditors but not necessarily with the comptroller s office. Thus, discussion of accountingrequirements and voluntary accounting choices in different jurisdictions is simplified by focusing on the three components of accounting. Disadvantage: measurement, disclosure and auditing are interdependent, and should not be viewed in isolation of one another. A company choosing to disclose as little as possible, for example, may use accountingmeasurement approaches that reduce the information content of financial statements, and select an external auditor who will be relatively lenient in enforcing accountingrequirements. One alternative classification might include accounting (measurement and disclosure), and auditing. A second classification might include financial reporting(annual and interim reporting, regulatory filings) and ad hoc disclosure (press releases,analyst meetings, etc). Any classification is arbitrary, and potentially useful depending on its purpose.3.Factors contributing to the internationalization of the subject of accounting include: thegrowth and spread of multinational operations around the world, the phenomenon ofglobal competition, the increasing number of cross-border mergers and acquisitions thatoccur almost daily, continued advances in information technology, and theinternationalization of the world’s capital markets.4.International trade involves importing and exporting activities. The major accountingissue associated with foreign trade involves accounting for foreign currency transactions.Foreign direct investment, on the other hand, involves conducting operations abroad.This activity exposes accountants to a new set of issues that run the gamut from having to consolidate foreign currency accounts based on diverse measurement rules to issues ofevaluating the performance of foreign subsidiary managers.5.Students will overwhelmingly argue in favor of harmonization. This is probably a goodstarting point for the course. After they are introduced to the chapters leading up toChapter 8, some may no longer feel that harmonization is necessarily the answer to all of their international accounting problems.6.Recent developments such as the growth and spread of multinational operations,Internationalization of the world’s capital markets, increased cross border mergers andacquisitions, the phenomenon of global competition and financial innovation haveincreased reader dependence on foreign financial statements. An understanding ofaccounting differences and their effect on reported measures of profitability, efficiency, solvency and liquidity are critical if proper decisions are to be made. Internationalaccounting issues have become more complex in recent years for several reasons.Financial transactions are becoming more complex, affecting both national andinternational accounting. For example, the use of complex financial instruments anddeveloping accounting standards for these exotic instruments has been problematic.Global financial markets also are becoming more volatile, leading to large changes in asset and balance sheet amounts (such as related to investments) and major sources of income and expense. The related accounting issues are difficult. The growinginternationalization of business also promotes complexity. Foreign currency transactions and translation have been troublesome accounting issues for years, and are becoming more important as cross-border business and finance increase. Also, differences innational accounting principles potentially are more troublesome as business becomes more international. However, as convergence efforts worldwide accelerate, and more and more companies and countries adopt International Financial Reporting Standards (IFRS), complexity arising from differences in national accounting principles will decrease.7.Examples of external reporting issues include:a. Does translation from one set of measurement rules to another change theinformation content of the original message?b. Should accounts of foreign operations be translated to parent currency whenconsolidated statements are prepared?c. Which exchange rates should be employed when translating from one currency toanother?Examples of internal reporting issues include:a. Which exchange rates should be used for budgeting purposes?b. Should foreign managers be evaluated in terms of parent currency or the localcurrency of the country in which the manager operates?c. Which prices should one use when transferring goods or services betweenmembers of the multinational enterprise- cost, market, cost-plus or some othermetric?8.Global capital market activities and transactions reach beyond single political or legaljurisdictions. For example, global capital market transactions include the following: (1) an American tourist buying Australian dollars for travel purposes in the South Pacific; (2)a Japanese insurance company buying German government bonds as an investment; and(3) a Nigerian agricultural development project receiving cash subsidies from theEuropean Union (EU).The international equities market is one global capital market. A second such market covers foreign exchange transactions, that is, when one national currency is exchanged into, traded forward, hedged, swapped, or otherwise converted to another nationalcurrency. This market is estimated at hundreds of billions of U.S. dollars per day. The total world foreign exchange market is the largest market on earth. The international bond market is still another global capital market. The bonds constituting this market areunderwritten by international syndicates of banks and are marketed and traded all over the world. Global capital markets are a vital part of the world economy.9.English should be designated as the formal international accounting language. Technicalaccounting terms ( terms of art) do not travel well internationally. Since technicalaccounting terms often have attributed meanings (for example, generally acceptedaccounting principles are neither generally accepted nor principles ), it is difficult orimpossible to translate these terms into other languages and retain their original meanings.In other disciplines, such considerations have caused the establishment of Latin as the universal language for botanical classifications, Italian as the language for specifying the tempo (and other matters of interpretation) of musical compositions, and English as the language of electronic computing. Since accounting is used worldwide, a singleworldwide language for accounting makes sense.Why should English be the worldwide language for accounting? English already hasbecome the language of world commerce and multinational business. Thus, the universal use of English in accounting would parallel a well-established business practice. Also, the accounting discipline was in many respects developed as an offshoot of Anglo-American economics, which means that the language roots of many accounting terms and concepts are English. Among non-English speaking people, English is the mostcommon second language. The vast majority of the world’s accounting literature iswritten in English, and nearly all international accounting conventions and conferences use English as the official language. Multinational corporations generally use English in their accounting and financial operating manuals, as well as for corporatecommunications, without regard to national domiciles. Therefore, the worldwide benefits of adopting English as the universal language of accounting are likely to be greater than for any other language, and the worldwide costs are likely to be less.10.Emerging markets are those whose financial systems are emerging from state dominationthrough a process of liberalization. Developed countries are those with liberalizedfinancial systems. Many people believe that liberalization is highly beneficial to sustained economic growth. Many different classifications of developed versus emerging market countries are used, and often the terms are not defined, although no one correct set of definitions for developed and emerging markets exists.Students should be encouraged to suggest their own criteria as to what constitutes adeveloped as opposed to an emerging market. The emerging market countries are in geographic regions that are generally not highly industrialized. But one cannot generalize here as extensive economic liberalization is taking place in these countries (in some more than in others). For example, entry barriers to foreign businesses, government regulation of banking operations, and credit controls have been eased in many of the countries once classified as “emerging.”11.Privatizations of state-owned corporations have had dramatic effects on global capitalmarkets. Often, the privatized entities are large, well-known companies in which thenational government retains a large ownership interest, and retail (individual, non-institutional) investors often are encouraged to buy shares in newly privatized entities. Asa result, the shareholder base in the market grows dramatically, investors become moreactive market participants, and market capitalization increases.Privatizations also mean that management must now compete in the market place formarket share, external capital and corporate control. In such a world, accounting systems must properly motivate managers to work toward the accomplishment of theorganization’s overall goals in an efficient manner while putting together credibleexternal financial statements that will enable it to secure the necessary capital to financecorporate growth. Many of these external and internal reporting issues are covered in the balance of the chapters in this book.12.Those opposed to outsourcing see it as a threat to domestic jobs and a form ofexploitation by companies engaged in the practice. Some even see it as a moral issue.However, they miss the point of international trade. While outsourcing may reduce jobs in one sector, they reflect differences in comparative advantage, which ultimately makes possible greater employment in other sectors and or lower consumer prices whichincreases real wealth. One need only look at higher education in America. Whereasstenographers in the U.S. may be losing jobs to stenographers in India, more and moreIndian families are sending their children to the U.S. for their higher education,increasing the demand for support services in the higher education sector.A look at Exhibit 1.2 shows that over time, countries with greater exports than importseventually become net importers and vice versa. The importance of internationalaccounting will not diminish. Countries have been trading with each other since antiquity and will continue to do. Even if the volume of trade were to diminish, an unlikely event, the network of trading partners continues to expand globally and with it accounting issues associated with international trade.Exercises1.For steps one and two in which the idea for the Proliant ML150 is spawned in Singaporeand approved in Texas, differences in legal practices regarding rights and compensationschemes for intellectual property development may vary between the U.S. and Singapore as the latter’s legal system has been influenced by the U.K. system. Internat ional taxissues also surface in terms of royalty payment arrangements and their tax consequences in both Singapore and the U.S.For step 4, language communications between Singapore and Taiwan could pose someissues of interpretation. Production in Taiwan raises internal reporting issues such asshould exchange rate fluctuations between the Taiwanese dollar and the U.S. dollar beincorporated into the cost of production or accounted for separately as a non-operatingforeign exchange gain or loss. In evaluating the creditworthiness of the Taiwanesemanufacturer, should the financial statements of the Taiwanese manufacturer betranslated to U.S. GAAP or not. If a ratio analysis is performed, should Taiwaneseliquidity and solvency ratios be interpreted based on U.S. financial norms or Taiwanesenorms?For step 5, should clients in Southeast Asian countries be charged identical prices orshould prices be flexed for differences in exchange rates, transportation arrangements and “facilitating” payments. What legal issues are raised in the case of bribes expected on the part of commercial buyers and how would these payments be treated under the U.S.Foreign Corrupt Practices Act?2. A suggested index might look like the following. The instructor should focus on thestudent’s rationale for his or her rating as some students may have more knowledge ofspecific country developments than others and students will naturally exhibit differentdegrees of risk-aversion.Industrialized CountriesUnited States 1Canada 1Japan 1United Kingdom 1France 1Germany 1Italy 1Australia 2New Zealand 2East AsiaHong Kong 1Indonesia 3South Korea 2Malaysia 2Phillipines 1Singapore 1Taiwan 3Thailand 2Latin AmericaArgentina 2Brazil 2Chile 2Colombia 2Mexico 1Peru 1Venezuela 2Middle East and AfricaEgypt 3Israel 2Morocco 2South Africa 1Turkey 2South AsiaBangladesh 2India 2Nepal 3Pakistan 3Sri Lanka 33.The compounded annual growth rate for merchandise exports from 1985 to 2005 wasapproximately 8.7%. The growth rate for merchandise imports was also 8.7% . The comparable growth rates for exports of services was 9.6% over the same 20 year period.It was 9.2% for imports. The outlook for accounting services to travel internationally are very good. Students interested in accounting careers should take note.4.The purpose of this exercise to get students to check out the wealth of stock relatedinformation available on the web. They will probably choose the five whose countriesare most familiar to them. Their exchanges will probably be located in highlyindustrialized economies and which afford access to relatively deep pools of capital. As one example, Luxembourg has long been popular because of its accommodating listingrequirements. However, students should note that the numbers of foreign companieslisted in markets other than the NYSE have been declining. This suggests that manyissuers question the benefits of such listings, and that the benefits of a foreign listinggenerally are greater in the United States. In particular, the U.S. represents a well-established market with strong investor protection. This is especially important in adown economy, as stringent disclosure requirements help to minimize perceivedinformation risk which, in turn, reduces price volatility.5.This exercise will require that students combine certain geographic categories ofmerchandise exports to achieve some comparability with Henekin’s disclosures. It would be interesting to poll students’ ex ante predictions of the correlations and have themponder reasons for any differences they find.Geographic Region Merchandise Exports Geographic Sales for HeinekenAfrica and Middle East 7.9% 12.6%Asia 29.2% 9.1%Europe 41% 65.5%Americas 17.6% 12.7%While correlations between percentage geographic distributions of merchandise exportsand beer sales are closer for Africa and the Middle East and for the Americas, there arebig differences in beer sales and merchandise export patterns for Asia and Europe.Obviously one cannot generalize microeconomic behavior from macroeconomic data.However, some students will be inclined to hypothesize similar patterns given thepopularity of beer consumption around the world. It will be fun brainstorming reasonsfor the observed differences. Might observed differences be due to national differencesin consumer tastes, import restrictions and perhaps the success of national advertisingcampaigns? More important, this exercise should reinforce the notion of environmentaldifferences as explanatory variables.6.The geographic spread of Heineken’s revenue streams suggest that the co mpany isexposed to foreign exchange rate risk. This complicates the process of forecasting thecompany’s future earnings and resultant cash flows. Moreover, the numbers beingreported are the results of a consolidation process. The cardinal rule to remember here is that when exchange rates change, data in parent currency may change even though local currency amounts may not. For managerial accountants, the conduct of foreignoperations raises numerous issues of financial control. For example, which currencyshould be used to evaluate foreign subsidiary performance, the parent currency or thelocal currency? In preparing operating budgets, which exchange rate combination should be used to translate original budgets and subsequently track performance? Whenplanning capital expenditures, how do you factor inflation, foreign exchange rate risk and sovereign risk into measures of future project cash flows, cost of capital estimates andplanned investment outlays? Should capital budgeting decisions be made from theproject’s perspective or a company perspective? Again, this exercise is designed to raise questions that will be addressed in subsequent chapters.7.Issues triggered by Exhibit 1-5 include :a. What criteria are used to determine when a foreign affiliate is to be consolidatedwith that of the parent company? While majority ownership is one criterion forconsolidation, do other criteria exist internationally and why?b. When consolidating the accounts of a foreign affiliate with that of the parentshould accountants first restate the accounting measurement rules of the foreignaffiliate to the reporting requirements of the parent company or should thereporting requirements of the affiliate’s country of domicile prevail? Whichmethod produces the more meaningful information for statement readers?c. When consolidating the accounts of a foreign affiliate should the accountanttranslate the currency of the affiliate to the reporting currency of the parentcompany? If so, which exchange rates should be employed for each balancesheet account? For each income statement account?d. If fluctuating exchange rates produce foreign currency gains and losses duringthe consolidation process, how should these gains and losses be accounted for?8.The ROE ratios for Electrolux based on IFRS and U.S. GAAP was derived as follows:IFRS U.S. GAAPROE 1,763/25,888 + 23,636 1,518/25,057 + 23,5672 2= 1,763/24,762 =1,518/24,3129.For this exercise, we consider information provided by three stock exchanges: TheLondon Stock Exchange, the Deutsche Boerse and the Tokyo Stock Exchange. TheLondon Stock Exchange Web site () provides highly useful information. However, under the U.K. regulatory structure, the Financial Services Authority, not the LSE, is responsible for the admission of securities to official listing and continuing obligations of listed companies.The Deutsche Boerse ()has a 117-page document covering insider trading and required ad hoc disclosure, but nothing in any detail concerning periodic financial disclosures. There is a bar chart that claimed to show the relative transparency of the various Deutsche Boerse exchanges. Without even the most basic frame ofreference, it s hard to describe such a chart as anything but opaque.It might be well to advise students not to investigate financial disclosure requirements for the Tokyo Stock Exchange (www.tse.or.jp). The TSE does not have independentfinancial disclosure requirements. Rather, companies must conform with therequirements of Japan’s Securities and Exchange Law and regulations. The TSE provides this brief summary: Under the Securities and Exchange Law, the registrants are required to file annual and semi-annual reports with the Ministry of Finance, with copies to the stock exchanges where the securities are listed. The financial statements to be included in security registration statements and annual reports must comply with a wide range of formats and contents relating to disclosures prescribed in the regulations. The regulations require both the consolidated financial statements and non-consolidated financialstatements of the registrant. The financial statements prepared under the Securities and Exchange Law and relevant regulations are in major areas equivalent to those prevailing internationally.This summary obviously raises many more questions than it answers. The TSE alsoprovides a flow chart showing which documents are required to be filed, and their filing deadlines, but nothing concerning the required contents of these documents.For an illustrative example, consider the Deutsche Boerse and the London StockExchange. Note that Web sites change continuously. Therefore, the responses shown below are indicative only.Ratings (obviously) will be subjective. Students should be evaluated on the thoroughness and thoughtfulness of their evaluations10.If we divide the total foreign company listings for each region by the total listings for thatregion as one measure of foreign listings, we would obtain the following results: The Americas: 1,174/3,758 = 31.2%Asia-Pacific: 274/2,375 = 11.53%Europe-Africa-Middle-East 1,188/10,383 = 11.4%Student answers to the second part of the question will vary depending on which region of the world they expect to experience the most rapid growth in the years ahead.11.In addition to eliciting a variety of investment strategies, this question should drive homethe connection between accounting information and international investing. Theaccounting issues that will influence country investment allocations will be the extent oftransparency of a company’s accounts, the degree to which its accounting standards areoriented toward investor decisions and the quality of the audit functions in each country. Case 1-1E-Centives, Inc.e-centives, Inc. — Raising Capital in Switzerland1. Possible factors (from Exhibit 1.7) relevant in e-centives decision to raise capital and list on the Swiss Exchange s New Market:•Ease of raising capital (point 3). The Swiss Exchange s New Market has simple listing requirements designed to appeal to small companies. The contrast with the complex,detailed listing and reporting requirements in the United States is striking.•Availability of capital (point 4). Switzerland has a large, well-developed capital market.•Reputation of the exchange (point 5). The Swiss Exchange is well known for providing a high quality, efficient trading environment.•Corporate profile and brand identity (point 6). A listing on the New Market would dovetail with the company s possible expansion into Switzerland by giving it a higherprofile in the Swiss market. While e-centives is interested in expanding into Switzerland, it also is considering Germany and the United Kingdom, which have much largerconsumer markets. Therefore, this is not an overwhelming point in Switzerland s favor.•Regulatory environment (point 7). It is highly likely that e-centives chose Switzerland because its regulatory environment is unlike that of the United States.•Availability of investors (point 9). e-centives might be interested in possible investment from large Swiss pension funds, but it s not likely that such funds would invest in aspeculative, start-up enterprise.2. a. Possible reasons why e-centives chose not to raise public equity in the United States:•One possible reason would be to avoid the complex and expensive process of registering securities with the U.S. Securities and Exchange Commission and keeping up with theCommission’s periodic reporting requirements.•e-centives probably would not satisfy the listing requirements of a U.S. stock exchange (such as Nasdaq or a regional stock exchange).•Management might think that raising money in Switzerland rather than the U.S. might give them an appearance of quality, cleverness, and exclusivity that would not bepossible with a U.S. listing. (Your authors believe that such reasoning is far-fetched, but it s not unknown.)b. Possible drawbacks to not raising capital in the U.S. public markets.•Lack of access to the largest pool of investment capital in the world.•Lack of following by U.S. investment analysts, and lack of access to individual U.S.investors.•Trading volume on the Swiss Exchange New Market is much smaller than on the U.S.exchanges.•Listing in Switzerland does little to establish the reputation or raise the profile of e-centives in the United States.•The degree to which (mostly European) investors in the New Market would be interested in a struggling U.S. start-up certainly can be questioned.3. Advantages and disadvantages to e-centives of using U.S. GAAP.Advantages: U.S. accounting standards are highly credible and well known, which is important to a new company seeking investment capital, and would be much more familiar to the company’s management, outside auditors, and investors domiciled in the U.S. than any other set of standards. Use of U.S. GAAP would eliminate some suspicions of the company trying to put something over on investors by using some other set of GAAP, and U.S. GAAP is accepted explicitly by the Swiss Exchange.Disadvantages: U.S. accounting standards are not particularly well known to investors participating on the Swiss Exchange, who would be expected to know Swiss GAAP, GAAP of other major European markets, and possibly IAS (International Accounting Standards). Compliance with U.S. GAAP is more complex and expensive than compliance with other standards (such as IAS), and the company might see some cost savings by avoiding U.S. GAAP if it isn’t required to use them.4. Should the Swiss Exchange require e-centives to prepare its financial statements using Swiss accounting standards?This is a debatable point. One would expect that investors on the Swiss Exchange would be more familiar with Swiss accounting standards than with any other, and that requiring Swiss accounting standards would make financial disclosures more easily understood toth em than any others. This wouldn’t be true, however, for non-Swiss investors participating on the exchange, and ignores the fact that IAS increasingly are becoming a common language for financial accounting disclosures. Accepting IAS almost certainly would increase the pool of investors that would be able readily to understand disclosures by listed companies, and this would give the exchange a powerful reason to accept IAS in addition to (if not instead of) Swiss accounting standards.5. What are listing and financial reporting requirements of the Swiss Exchange s New Market? Does e-centives appear to fit the profile of the typical New Market company?From the case: The New Market is designed to meet the financing needs of rapidly growing companies Listing requirements are simple. For example, companies must have an operating track record of 12 months [note: not necessarily a profitable operating track record], [and] the initial public listing must involve a capital increase. All of these conditions apply well to e-centives, and on that basis the company does appear to fit the profile of the typical New Market company. The uniqueness of e-centives is in its decision to skip the U.S. capital markets.Case 1-2Infosys Technologies LimitedThis case is designed to get students into reading non-domestic financial statements. Many students will be surprised at the information content of Infosys’ financial statements as the company does not fit the typical stereotype of sub-par financial reporting in emerging markets. Indeed the company illustrates how competitive the world of business has become and the success that accrues to firms that base their futures on innovative thinking and adaptability. Students unused to seeing the report form of balance sheet will find it at odds with the classified balance sheet format that they were taught in class. Other things they will note include but are not limited to: use of a fiscal as opposed to a calendar year, the fact that the financial statements。

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Intermediate Accounting 7e by spiceland Chapter01 SM

© The McGraw-Hill Companies, Inc., 2013 1-2
Intermediate Accounting 7/e
QUESTIOon 1–1
Financial accounting is concerned with providing relevant financial information about various kinds of organizations to different types of external users. The primary focus of financial accounting is on the financial information provided by profit-oriented companies to their present and potential investors and creditors.
Question 1–5
The primary objective of financial accounting is to provide investors and creditors with information that will help them make investment and credit decisions.
Solutions Manual, Vol.1, Chapter 1
© The McGraw-Hill Companies, Inc., 2013 1-3
Answers to Questions (continued) Question 1–7
GAAP (generally accepted accounting principles) are a dynamic set of both broad and specific guidelines that a company should follow in measuring and reporting the information in their financial statements and related notes. It is important that all companies follow GAAP so that investors can compare financial information across companies to make their resource allocation decisions.

国际会计第七版英文版课后答案(第六章)

Chapter 6Foreign Currency TranslationDiscussion Questions Solutions1.Foreign currency translation is the process of restating aforeign account balance from onecurrency to another. Foreign currency conversion is theprocess of physically exchanging one currency for another.2.In the foreign exchange spot market, currencies bought andsold must be delivered immediately,normally within 2 business days. Thus a Singaporean tourist buying U.S. dollars at the airportbefore boarding a plane for New York would hand over Singapore dollars and immediatelyAHA12GAGGAGAGGAFFFFAFAFreceive the equivalent amount in U.S. dollars. The forward market handles agreements toexchange a fixed amount of one currency for another on an agreed date in the future. Forexample, a French manufacturer exporting goods invoiced in euros to a Japanese importer on 60-day credit terms would buy a forward contract to sell yen for euros 2 months in the future.Transactions in the swap market involve the simultaneous purchase (or sale) of one currency inthe spot market and the sale (or purchase) of the same currency in the forward market. Thus, aAHA12GAGGAGAGGAFFFFAFAFCanadian investor wishing to take advantage of higher interest rates on 6-month Treasury bills inthe United States would buy U.S. dollars with Canadian dollars in the spot market and invest inthe United States. To guard against a fall in the value of the U.S. dollar before maturity (whenthe U.S. dollar proceeds are converted back to Canadian dollars), the Canadian investor wouldsimultaneously enter into a forward contract to sell U.S. dollars for Canadian dollars 6 months inthe future at today s forward exchange rate.3.The question refers to alternative exchange rates that areused to translate foreign financialAHA12GAGGAGAGGAFFFFAFAFstatements. The current rate is the exchange rate at the financial statement date. It issometimes called the year-end or closing rate. The historical rate is the exchange rate at the timeof the underlying transaction. The average rate is the average of various exchange rates during afiscal period. Since the average rate normally is used to translate income statement items, it isoften weighted to reflect any seasonal changes in the volume of transactions during the period.Translation gains and losses do not occur if exchange rates do not change. However, ifAHA12GAGGAGAGGAFFFFAFAFexchange rates change, the use of current and average rates causes translation gains and losses.These do not occur when the historical rate is used because the same (constant) rate is used eachperiod.4. In this example, the Mexican Affiliate s Canadian dollar loan is denominated in Canadian dollars.However, because the Mexican affiliate’s functional currency is U.S. dollars, the peso equivalentAHA12GAGGAGAGGAFFFFAFAFof the Canadian dollar borrowing would be remeasured in U.S. dollars prior to consolidation. Ifthe Mexican affiliate’s functional currency were the peso, the Canadian dollar loan would beremeasured in pesos before being translated to U.S. dollars.5. A transaction gain or loss occurs when a foreign currency transaction, e.g., a foreign currencyborrowing, is settled at a different exchange rate than that which prevailed when the transactionwas originally incurred. In this case there is an exchange of one currency for another. AAHA12GAGGAGAGGAFFFFAFAFtranslation gain or loss, on the other hand, is simply theresult of a restatement process. There isno physical exchange of currencies involved.6. It is not possible to combine, add, or subtract accounting measurements expressed in differentcurrencies; thus, it is necessary to translate those accounts that are measured or denominated in aforeign currency into a single reporting currency. Foreign currency translation can involverestatement or remeasurement. In restatement, the local (functional) currency is kept as the unitof measure; that is, the translation process multipliesthe financial results and relationships in theAHA12GAGGAGAGGAFFFFAFAFlocal currency accounts by a constant, the current rate.In contrast, remeasurement translateslocal currency results as if the underlying transactions had taken place in the reporting(functional) currency of the parent company; for example, it changes the unit of measure of aforeign subsidiary from its local (foreign) currency tothe U.S. dollar.7. Major advantages and limitations of each of the major translation methods follow.Current Rate MethodAdvantages:AHA12GAGGAGAGGAFFFFAFAFa. Retains the initial relationships in the foreign currency statements.b. Simple to apply.Limitations:a. Violates the basic purpose of consolidation, which is to present the results of a parent and its subsidiaries as if they were a single entity.b. Inconsistent with historical cost.c. Presumes that all local assets and liabilities are subject to exchange risk.d. While stockholders equity adjustments shield an MNC s bottom line from translation gains and losses, such adjustments could distort certain financial ratios and be confusing.AHA12GAGGAGAGGAFFFFAFAFCurrent-noncurrent MethodAdvantages:a. Distortions in translated gross margins are reduced as inventories and translated at the current rate.AHA12GAGGAGAGGAFFFFAFAFb. Reported earnings are shielded from the distorting effects of currency fluctuations as excess translation gains are deferred and used to offset future translation losses. Limitations:a. Uses balance sheet classification as basis for translation.b. Assumes all current assets are exposed to exchange risk regardless of their form.c. Assumes long-term debt is sheltered from exchange rate risk. Monetary-nonmonetary MethodAdvantages:a. Reflects changes in domestic currency equivalent of long-term debt on a timely basis.Limitations:AHA12GAGGAGAGGAFFFFAFAFa. Assumes that only monetary assets and liabilities are subject to exchange rate risk.b. Exchange rate changes distort profit margins as sales transacted at current prices are matched against cost of sales measured at historical prices.c. Uses balance sheet classification as basis for translation.d. Nonmonetary items stated at current market values are translated at historical rates.Temporal MethodAdvantages:a. Theoretically valid: compatible with any accounting measurement method.AHA12GAGGAGAGGAFFFFAFAFb. Has the effect of translating foreign subsidiaries operations as if they were originally transacted in the home currency, which is desirable for foreign operations that are extensions of the parent’s activities.Limitation:a. A company increases its earnings volatility by recognizing translation gains and losses currently.In arguing for one translation method over another, your students should eventually realize that, in the present state of the art, there is probably no one translation method that is appropriate for all circumstances in which translations occur and for all purposes thatAHA12GAGGAGAGGAFFFFAFAFtranslation serves. It is probably more fruitful to havestudents identify circumstances in which they think one translation method is more appropriate than another.8.The current rate method is appropriate when the foreignentity being consolidated is largely independent of the parent company. Conditions which would justify thismethodology is when the foreign affiliate tends togenerate and expend cash flows in the local currency,sells a product locally so that its selling price islargely insulated from exchange rate changes, incursexpenses locally, finances its self locally and does not have very many transactions with the parent company. Incontrast, the temporal method seems appropriate in thoseAHA12GAGGAGAGGAFFFFAFAFinstances when the foreign affiliate’s operations are integrally related to the parent company. Conditions which would justify use of the temporal method are when the foreign affiliate transacts business in the parent currency and remits such cash flows to the parent company, sells a product largely in the parent country and whose selling price is sensitive to exchange rate changes, sources its factor inputs from the parent company, receives most of its financing from the parent and has a large two way flow of transactions with it.AHA12GAGGAGAGGAFFFFAFAF9.The history of foreign currency translation in the UnitedStates suggests that the development ofaccounting principles does not depend on theoretical considerations so much as on political,institutional, and economic influences that affect accounting standard setting. It may be morerealistic to recognize that theoretically sound solutions are impossible as long as policyprescriptions are evaluated on practical grounds. Without specific choice criteria derived frominvestor decision models, it is fruitless to argue the conceptual merits of competing accountingAHA12GAGGAGAGGAFFFFAFAFtreatments. It is far more productive to admit that foreign currency translation choices are simplyarbitrary.Readers of consolidated financial statements should know that the foreign currency translationmethod used is one of several alternatives, and this should be disclosed. This approach is moreopen and reduces the chance that readers will draw misleading inferences.10.Foreign inflation, in particular, the differential rate ofinflation between the country in which a subsidiary islocated and the country of its parent determines foreignAHA12GAGGAGAGGAFFFFAFAFexchange rates. These rates, in turn, are used totranslate foreign currency balances to parent currency. 11.In the United Kingdom, financial statements of affiliatesdomiciled in hyperinflationary environments must first be adjusted to current price levels and then translated using the current rate; in the United States, the temporalmethod would be employed. The second part of thisquestion is designed to get students from abroad to find out what companies in their home countries are doing and thereby be in a position to share their new foundknowledge with their classmates. They need simply get on the internet and read the footnotes of a majormultinational company in their home country.AHA12GAGGAGAGGAFFFFAFAF12.Under FAS No. 52, the parent currency is designated as thefunctional currency for an affiliate, whose operations are considered to be an integral part of the parent company’s operations.Accordingly, anything that affects consolidated earnings, including foreign currency translationgains and losses, is relevant to parent company shareholders and is included in reported earnings.In contrast, when a foreign affiliate s operations are independent of the parent s, the localcurrency is designated as its functional currency. Since the focus is on the affiliate s localAHA12GAGGAGAGGAFFFFAFAFperformance, translation gains and losses that arise solely from consolidation are irrelevant and, therefore, are not included in consolidated income.AHA12GAGGAGAGGAFFFFAFAFExercises Solutions1.¥250,000,000 X .008557 = $2,139,250.¥250,000,000 ÷ ¥116.86 = $2, 139,312 The difference is due to rounding.2.Since £ 1 = US$1.9590 and €1 = US$1.3256, £1 =US$1.9590/US$1.3256 = €1.4778.Alternatively, €1 = US$1.3256/US$1.9590 = £.6767.3.Single Transaction Perspective:4/1 Purchases (¥32,500,000/¥116.91)$277,992Cash $27,800AHA12GAGGAGAGGAFFFFAFAFA/P(¥32,500,000 - ¥3,250,000)/¥116.91250,192(Credit purchase)7/1 Purchases[(¥29,250,000/¥116.91) –(¥29,250,000/¥115.47) 3,120A/P 3,120(To record increase in purchases due to yen appreciation) 7/1 Interest expense(¥29,250,000 X .08 X3/12)/¥115.47 5,066A/P(¥29,250,000/¥115.47)253,312Cash 258,378AHA12GAGGAGAGGAFFFFAFAF(To record settlement)Two Transactions Perspective:4/1 Purchases $277,992Cash $27,800A/P 250,192 7/1 Transaction loss 3,120 A/P 3,120 7/1 Interest expense 5,066 A/P 253,312Cash 258,3784. a. MXN 1,750,000/MXN10.3 = C$169,903.AHA12GAGGAGAGGAFFFFAFAFb. The Canadian dollar equivalent of the Mexican inventory account would not change if the functional currency was the Canadian dollar as the temporal method translates inventory, a nonmonetary asset, at the exchange rate that preserves its original measurement basis. Since inventory is being carried at its net realizable value, it would be translated at the current rate. Had inventory been carried at historical cosuld have been translated at the historical rate or MXN3,750,000/MXN9.3 = C$403,226.AHA12GAGGAGAGGAFFFFAFAF5. Baht is the functional currency:B 2,500,000/20 years = B 125,000B 125,000/B37 = 3,378B 5,000,000/20 years = B 250,000B 250,000/B37 = 6,757U.S. dollar is the functional currency:B 2,500,000/20 years = B 125,000B 125,000/B40 = 3,125B 5,000,000/20 years = B 250,000B 250,000/B38 = 6,579Total depreciation $ 9,704AHA12GAGGAGAGGAFFFFAFAF6. If the euro is the German subsidiary’s f unctionalcurrency, its accounts would be translated into Australian dollars using the current rate method. In this case the translation gain of AUD4,545,455 would appear inconsolidated equity. Thus the only item affecting current income would be the transaction loss(loss on an unsettled transaction) of AUD1,514,515 on the euro borrowing.If the Australian dollar is deemed to be the functional currency, then the transaction loss andtranslation gain would both appear in reported earnings as follows:AUD(1,514,515) transaction lossAUD4,545,455 translation gainAHA12GAGGAGAGGAFFFFAFAFAUD3,030,940 net foreign exchangegain7.U.S. Dollar U.S. Dollar U.S. DollarBefore CNY After CNY After CNYAppreciation Appreciation DepreciationCNY Balance Sheet ($.12=CNY1) ($.15 = CNY1) ($0.09 = CNY1)Assets Amount Current Monetary Current MonetaryNoncurrent Nonmonetary NoncurrentNonmonetaryAHA12GAGGAGAGGAFFFFAFAFCash NT5,000 $600 $ 750 $ 750$ 450 $ 450Accts. Receivable 14,000 1,680 2,100 2,100 1,260 1,260Inventories(cost=24,000) 22,000 2,640 3,3002,640 1,980 2,640Fixed assets, net 39,000 4,680 4,680 4,680 4,680 4,680Total CNY 80,000 $9,600 $10,830 $10,170 $8,370 $9,030AHA12GAGGAGAGGAFFFFAFAFLiabilities & Owners EquityAccts. Payable CNY21,000 $2,520$ 3,150 $ 3,150 $1,890 $1,890Long-term debt 27,000 3,2403,240 4,050 3,240 2,430Stockholders equity 32,000 3,8404,440 2,970 3,240 4,710Total CNY 80,000 $9,600$10,830 $10,170 $8,370 $9,030Accounting exposure CNY20,000 (29,000) 20,000 (29,000)AHA12GAGGAGAGGAFFFFAFAFTranslation gain (loss) US$ 600 (870) (600) 8708.U.S. Dollar U.S. Dollar U.S. DollarBefore CNY After CNY After CNYAppreciation Appreciation Depreciation CNY Balance Sheet ($.12=CNY1) ($.15 = CNY1) ($.09 = CNY1)Assets Amount Temporal Current Temporal CurrentCash CNY5,000 $ 600 $ 750 $ 750 $ 450 $ 450AHA12GAGGAGAGGAFFFFAFAFAccts. Receivable 14,000 1,680 2,1002,100 1,260 1,260Inventories(cost=24,000) 22,000 2,640 3,3003,300 1,980 1,980Fixed assets, net 39,000 3,6003,600 5,850 3,600 3,510Total CNY 80,000 $8,520 $9,750 $12,000 $11,700 $7,200Liabilities & Owners EquityAHA12GAGGAGAGGAFFFFAFAFAccts. Payable CNY21,000 $2,520$3,150 $3,150 $1,890 $1,890Long-term debt 27,000 3,240 4,0504,050 2,430 2,430Stockholders equity 32,000 2,760 2,550 4,800 7,380 2,880Total NT$ 80,000 $8,520 $9,750 $12,000 $11,700 $7,200Accounting exposure NT$ (7,000)32,000 (7,000) 32,000AHA12GAGGAGAGGAFFFFAFAFTranslation gain (loss)US$ (210) 960 210(960)c. Students will quickly discover that each translation method has its advantages and disadvantages. After some discussion, the question of translation objectives will arise. Currency translation objectives are based on how foreign operations are viewed. If foreign operations are considered extensions of the parent, a case can be made for a historical rate method: current-noncurrent, monetary-nonmonetary, or temporal. If foreign operations are viewed from a local company perspective, a case can be made for the current rate method. Given theAHA12GAGGAGAGGAFFFFAFAFcomplexity of multinational business activities, one could argue that a single translation method will not serve all purposes for which translations are done. As long as the objectives of foreign currency translation differ among specific reporting entities, a practical solution is to insist on full disclosure of the translation procedures used so that users have a basis for reconciling any differences that exist. 9.AHA12GAGGAGAGGAFFFFAFAFCompany A (Country A)(Reporting Currency = Apeso)Beginning of Year End of Year Assets: Exchange Rate Translated Exchange Rate TranslatedApeso 100 Apeso 100 Apeso 100 Bol 100 Apeso 1 = Bol 1.25 Apeso 80 Apeso 1 = Bol 2 Apeso 50Apeso 180 Apeso 150 Translation loss = A$ 30Company B (Country B)(Reporting Currency = Bol)AHA12GAGGAGAGGAFFFFAFAFBeginning of Year End of Year Assets: Exchange Rate Translated Exchange Rate TranslatedApeso 100 Apeso 1 = Bol 1.25 Bol 125 Apeso 1 = Bol 2 Bol 200Bol 100 Bol 100 Bol 100Bol 225 Bol 300 Translation gain = Bol 75b. This exercise demonstrates the effect of the reporting currency on foreign currency translation results when the current rate method is used. Both companies are in seemingly identical situations, yet one reports a translation loss whileAHA12GAGGAGAGGAFFFFAFAFthe other reports a translation gain. One company reports shrinking assets while the other reports increasing assets. Nothing has actually happened but an exchange rate change. Also, despite a stronger Apeso, Company A reports a loss. Conversely, the Bol weakened, yet Company B reports a gain. It appears that a strengthening currency is not always good news, nor is a weakening currency always bad news.If the intention is to repatriate the funds invested in the foreign country (Country B from Company A’s perspective, Country A from Company B’s perspective), the scenario makes sense. After all, Company A will be repatriating fewer Apesos than originally invested and Company B will be repatriating more B ol’s than originally invested. Fluctuating exchangeAHA12GAGGAGAGGAFFFFAFAFrates have changed each company s command over a foreign currency. Assuming the company intends to repatriate the currency, it makes sense toinclude the respective gain or loss in income for the current year. On the other hand it can be argued that the gain or loss should be excluded from income if the company intends to keep the foreign assets invested permanently..10.AHA12GAGGAGAGGAFFFFAFAFTranslation RateLocal Currency is Dollar isFunctional Currency FunctionalCurrencyCash Current Current Marketable securities (cost)CurrentHistorical aAccounts receivable Current Current Inventory (market) Current Current Equipment Current Historical Accumulated depreciation CurrentHistoricalAHA12GAGGAGAGGAFFFFAFAFPrepaid expenses CurrentHistoricalGoodwill Current Historical Accounts payable Current Current Due to parent (denominated in dollars) Current CurrentBonds payable Current Current Income taxes payable Current Current Deferred income taxes Current Current Common stock Historical Historical Premium on common stock HistoricalHistoricalAHA12GAGGAGAGGAFFFFAFAFRetained Earnings Balancing Residual Balancing ResidualSales Average Average Purchases Average Average Cost of Sales Average Historical General and administrative expenses AverageAverageSelling expenses AverageHistoricalDepreciation Average Historical Amortization of goodwill AverageHistoricalIncome tax expense Average AverageAHA12GAGGAGAGGAFFFFAFAFInter-company interest expense AverageAverage__________________________________________________________________________________________________________________________a Fixed income securities intended to be held to maturity.11. a. Before riyal depreciation:Cash SAR 60,000,000 ÷ SAR3.75 = $ 16,000,000Inventory 120,000,000 ÷ SAR3.75 = 32,000,000Fixed Assets 750,000,000 ÷ SAR3.75 = 200,000,000AHA12GAGGAGAGGAFFFFAFAFTotal $248,000,000 After riyal depreciation:AHA12GAGGAGAGGAFFFFAFAFCash SAR 60,000,000 ÷ SAR4.125 = $ 14,545,455Inventory 120,000,000 ÷ SAR3.75 = 32,000,000Fixed Assets 750,000,000 ÷ SAR3.75 = 200,000,000Total $246,545,455 Translation loss $(1,454,455) b.The translation loss has no effect on MSC’s cash flowsas it is the result of a restatement process.c.On a pre-tax basis, an analyst would back out thetranslation gain from reported earnings and add it toAHA12GAGGAGAGGAFFFFAFAFconsolidated equity. However, in addition inventory andfixed assets would be translated at the current rate, as opposed to the historical rate, and the resultingtranslation loss would also be taken to consolidatedequity. This would result in a different earnings number as well as asset measures.Before riyal depreciation:Cash SAR 60,000,000 ÷ SAR3.75 = $ 16,000,000Inventory 120,000,000 ÷ SAR3.75 = 32,000,000Fixed Assets 750,000,000 ÷SAR3.75 = 200,000,000AHA12GAGGAGAGGAFFFFAFAFTotal $248,000,000 After riyal depreciation:Cash SAR 60,000,000 ÷ SAR4.125 = $ 14,545,455Inventory 120,000,000 ÷ SAR4.125 = 29,090,909Fixed Assets 750,000,000 ÷ SAR4.125 = 181,818,182Total $225,454,546 Translation adjustnment reflected in equity$(22,545,454)AHA12GAGGAGAGGAFFFFAFAFStudents could also be probed and asked how the adjusted numbers would impact certain ratios such as ROA or ROE, Debt to Equity, and asset turnover.12. a. The currency effects in the first and thirdparagraphs have an impact on Alcan’s cash flows. IN the first paragraph, echange rate changes affect Alcan’s future revenues and costs and directly affect cash receipts and payments. The third paragraph involves settling foreign currency transactions at a different echange rate than when the transaction were entered into.b. Alcan appears to be employing the monetary-nonmonetarymethod.AHA12GAGGAGAGGAFFFFAFAFc. Many analysts back out translation gains and losses from reported earnings as these are largely non-cash items that simply result from a restatement process. This would especially be the case if Alcan were being compared to a company employing the current rate method. Disregarding translation gains and losses would have the following effect on reported earnings:20X5 20X4 20X3With translation G/L $129m $258m $64m Translation G/L (86) (153)(326)Without Translation G/L $215m $411m$390mAHA12GAGGAGAGGAFFFFAFAFThe impact on the pattern of earnings would changesignificantly. The year to year changes in earnings both before and after abstracting from currency translationeffects are:20X5/20X3 20X5/20X4 20X4/20X3 With translation G/L 102% -50% 303%Without Translation G/L 45% -48%5%Case 6-1 Regents CorporationAHA12GAGGAGAGGAFFFFAFAFThe nature of Regents’s operation is such that choice of an appropriate functional currency is ultimately a judgement call. Students can argue for either currency and should be evaluated on the strength of their analysis. A major lesson of this case is that the functional currency choice is important since the currency designation dictates which translation method, (current or temporal) is ultimately used. The financial statement effects can be very different. Thus it is important for a reader of financial statements to understand how the differing measurement options affect the balance sheet and income statement and be prepared to adjust from one frameworkto the other, even if only crudely.AHA12GAGGAGAGGAFFFFAFAF。

Fin-Acctg7-SM-Ch05

284
Financial Accounting 7/e Solutions Manual
(5-10 min.)
S 5-8
(a) Accounts Receivable……………………….. 400,000 Sales Revenue……………………………. 400,000 (b) Cash……………………………………………. 410,000 Accounts Receivable……………………. 410,000 (c) Allowance for Uncollectible Accounts….. Accounts Receivable……………………. (d) Uncollectible-Account Expense………….. Allowance for Uncollectible Accounts.. 7,000 7,000 9,000 9,000
(10 min.) 1. Interest for: 20X7 ($100,000 × .09 × 8/12)………………. 20X8 ($100,000 × .09)………………………. 20X9 ($100,000 × × 4/12)……………….
S 5-11
$6,000 9,000 3,000
Chapter 5
Short-Term Investments and Receivables
Short Exercises
(5 min.)
S 5-1
1. A trading investment is always a current asset because the investor intends to sell the trading investment in the very near future — days, weeks, or only a few months. A current asset is to be sold within one year or within the company’s operating cycle if longer than a year. 2. Trading investments are reported at their current market value.

国际会计第七版英文版课后答案(第八章)培训资料

国际会计第七版英文版课后答案(第八章)Chapter 8Global Accounting and Auditing Standards Discussion Questions1.A rgument for measurement:•Discrepancies in international measurement may produce accounting amounts that are vastly different (even where financial transactions and position are identical), leading to incorrectcomparisons. Here it doesn’t matter what is disclosed; no reliable comparisons are possibleanyway.Arguments for disclosure:•If companies do not disclose complete information, they can hide losses or future problems from financial statement users. For example, losses can be hidden by offsetting them against gains.Expected future problems related to loss contingencies can be hidden simply by not disclosingthem. Thus, if disclosure is incomplete, even the application of similar measurement principleswill lead to incorrect comparisons.Clearly, international accounting convergence requires that both measurement and disclosure be made comparable.2. The term convergence is associated with the International Accounting Standards Board. Beforethe IASB, harmonization was the commonly used term. Harmonization means that standards are compatible; they do not contain conflicts. Harmonization was generally taken to mean the elimination of differences in existing accounting standards, in other words, finding a common ground among existing standards. Convergence means the gradual elimination of differences in national and international accounting standards. Thus, the terms harmonization and convergence are closely aligned. However, convergence might also involve coming up with a new accounting treatment not in any current standards.3.a. Reciprocity, or mutual recognition, exists when regulators outside of the home country accept afor eign firm’s financial statements based on the home country’s principles, or perhaps IFRS. For example, the London Stock Exchange accepts U.S. GAAP-based financial statements in filings made by non-U.K. foreign companies. Reciprocity does not increase cross-country comparability of financial statements, and it can create an unlevel playing field in that foreign companies may be allowed to apply standards that are less rigorous than those used by domestic companies.b. With reconciliation, foreign firms can prepare financial statements using the accountingstandards of their home country or IFRS, but also must provide a reconciliation between accounting measures (such as net income and shareholders’ equity) of the home country and the country where the financial statements are being filed. Reconciliations are less costly than preparing a full set of financial statements under a different set of accounting principles, but provide only a summary, not the full picture of the enterprise.c. International standards are a result of either international or political agreement, or voluntary (orprofessionally encouraged) compliance. When accounting standards are applied through political, legal, or regulatory procedures, statutory rules typically govern the process. All other international standards efforts in accounting are voluntary in nature.a.A growing body of evidence indicates that the goal of international convergence of accounting,disclosure and auditing has been widely accepted.b.A ll dimensions of accounting are becoming converged worldwide.c.Increasing numbers of highly credible organizations strongly support the goals of the IASB.d.N ational differences in the underlying factors that lead to variation in accounting, disclosure, andauditing practices are narrowing as capital and product markets become more international.e.International standards will improve the comparability of international financial information.f.Time and money will be saved on international consolidations, the components of which now aresubject to different national laws and practices.g.T here may be a tendency for accounting standards throughout the world to be raised to the highestpossible level.h.W idespread application of IFRS might also result in:•Improved managerial decision making within multinational enterprises.•Improved allocations of corporate investment money worldwide.•Better international understandability of financial statements.•Cost reductions in accounting information processing and financial disclosure costs for multinational enterprises.•Greater international credibility for published financial statements.a.Accounting has built-in flexibility. Its ability to adapt to widely different situations is one ofits most important features. Critics doubt that international standards can be flexible enoughto handle differences in national backgrounds, traditions, and economic environments, andmay be a politically unacceptable challenge to sovereignty.b.It is claimed that international accounting standard setting is a tactic of the large internationalaccounting service firms to expand their market share.c.International standards may create standards overload for companies that do businessinternationally.d.National political concerns frequently intrude on accounting standards. International politicalinfluences would compromise international accounting standards.e.International standards are not suitable for small and medium-sized companies, particularlyunlisted ones with no public accountability.f.Risks of misinformation — uniform standards may give the appearance of similarities whenin fact countries and companies may be highly dissimilar.g.Political costs of the necessary international treaties on financial accounting and reportingwhich would have to be negotiated to enforce the use of IFRS.6.Evidence indicating wide acceptance of IFRS around the world:a.Growing numbers of companies are adopting IFRS voluntarily and refer to their use of IFRSin their annual reports.b.Dozens of countries base their national accounting standards on IFRS.c.Some 7,000 EU listed companies now use IFRS in their consolidated financial statements.d.Many international organizations, such as IOSCO, endorse the use of IFRS.e.IFRS are used as an international benchmark in many major industrialized countries.f.IFRS are accepted by many stock exchanges and securities regulators.g.IFRS are recognized by the European Commission (EC) and other supranational bodies.h.Norwalk Agreement committed FASB and IASB to convergence.7. The International Accounting Standards Board is overseen by the International Accounting Standards Committee, consisting of 22 trustees: six from North America, six from Europe, six from the Asia-Pacific region, and four from any area. The trustees appoint the members of the IASB. The IASB receives advice from the Standards Advisory Council on its agenda and priorities. The SAC consists of around 30 members appointed by the IASC trustees and they represent a diversity of geographic and professional backgrounds.The IASB consists of 14 members, 12 full-time and two part-time. It follows a due process in setting accounting standards. For each standard, the board normally publishes a discussion paper that sets out the various possible requirements for the standard and the arguments for and against each one. Later, the board publishes an exposure draft for public comment, and it then examines the arguments put forward in the comment process. A final standard is issued when nine of the 14 board members have voted in its favor.8.Accounting harmonization in the EU is just one element of the overall project of harmonizing the legal and economic systems of the member states, and is part of the process of harmonizing company law. The Fourth Directive illustrates the concept of harmonization, and specifies accounting measurement (valuation) and disclosure requirements. It provides format rules for the balance sheet and the profit and loss account. The true and fair view is the overriding requirement and holds for footnote disclosures aswell as the financial statements. The Fourth Directive also sets out the requirements for financial statement audits.The Seventh Directive addresses consolidated financial statements. It requires consolidations for groups of companies above a certain size, specifies disclosures and notes, and requires a directors’ re port. When it was issued in 1983, consolidated financial statements were the exception rather than the rule in Europe. The Eighth Directive addressed various aspects of the qualifications of professionals authorized to carry out legally required (statutory) audits. Now referred to as the Statutory Audit Directive, it was substantially amended in 2006. The new directive tightens oversight of the audit profession and has standards for, among other points, auditor appointment and rotation, and continuing professional education.The EU abandoned its approach to harmonization to one favoring the IASB for practical and political reasons. The Fourth and Seventh Directives were incomplete and essentially remained as they were issued. Improvements to them proved difficult to achieve and the directives did not achieve the comparability expected. Some saw a set of Europe-wide standards as an unnecessary redundancy given the emergence of comprehensive IFRS. Others saw U.S. GAAP as a rival to IFRS. The EU cannot influence U.S. GAAP, but can influence IFRS. By putting its weight behind the IASB, the EU could serve as a counterweight to U.S. GAAP.9.International accounting harmonization/convergence should address many, if not most, investor concerns about cross-national differences in accounting practices. The key issue here is comparability –investors want to make “apples to apples” comparisons of financial statements of companies from countries around the world. However, converged standards are only the beginning. Standards must also be comparably applied and they must be rigorously enforced. The financial statements must also be similarly audited to ensure comparable reliability.10.Convergence of auditing standards will help ensure that audit quality will reach acceptable levels worldwide. Auditing convergence may be less difficult to achieve than accounting convergence because auditing is more technically oriented and there is wider agreement as to what constitutes best practices in auditing than there is for accounting principles.IFAC is a worldwide organization of over 160 member organizations in 120 countries. Its mission includes establishing and promoting adherence to high-quality auditing and other professional standards, and furthering the international convergence of such standards. Its work is done through standard setting boards and standing committees. Among its standard setting boards are:•International Accounting Education Standards Board•International Auditing and Assurance Standards Board•International Ethics Standards Board for AccountantsIts work spans the entire array of professional responsibilities of auditors and includes standards covering professional education, the conduct of the audit, and professional ethics.11.IOSCO consists of securities regulators from more than 100 countries. Together, IOSCO members are responsible for regulating more than 90 percent of global securities markets. One of IOSCO’s objectives is promoting “high standards of regulation in order to maintain just, efficient, and sound markets.” IOSCO has worked extensively on international disclosure and accounting standards to facilitate the ability of companies to raise capital efficiently in global securities markets. It has a technical committeewhose sole focus is multinational disclosure and accounting. Model disclosure standards were published in 1998 and 2002.IOSCO’s disclosure harmonization work is important because it has established a set of high quality disclosure standards, globally recognized, that serves as a model for nations around the world as they develop national requirements for cross-border offerings and initial listings.12.The UN and OECD now play supporting roles in harmonizing accounting and auditing standards. The IASB and IFAC are now the clear leaders in this endeavor, but in the 1970s and 1980s, both the UN and OECD were potential rivals. Most of the effort of the UN and OECD is directed toward providing technical accounting assistance to developing countries. For example, the UN has focused much attention on Russia and countries of the former Soviet bloc, and on African countries.Exercises1.One of the main problems with mutual recognition (or reciprocity) is that it actually may make financialstatements within the home market noncomparable. If many different accounting standards are acceptable, then companies domiciled in countries with rigorous standards (such as the United States) would be at a disadvantage to companies whose home country standards are not as stringent, but still would be acceptable. Investors also would face the difficult task of having to master many sets of accounting principles in order to be able to understand the associated financial statements.The U.S. SEC considers reconciliation to be a cost-effective means to allow foreign firms to list on a domestic exchange. With reconciliation, differences between accounting standards are identified and quantified without the need to prepare a second set of financial statements. However, significant differences between domestic and foreign accounting principles can increase the burdens associated with reconciliation, and reconciliations do not provide a full picture of the enterprise as would result from a second set of financial statements.The use of International Financial Reporting Standards would provide many benefits for cross-border listings. Companies would have to provide only one set of financial statements for all nondomestic capital markets, and investors would have to be familiar with only one set of accounting principles to properly understand and interpret nondomestic financial statements. However, as with reconciliation, domestic companies required to comply with domestic standards still would compete for capital with nondomestic companies that would be required to comply with a different (and possibly less stringent) standard.Preferred approaches from perspectives of different groups:a.Investors might prefer international standards, as they would increase the ease in understandinginformation from nondomestic companies. Knowledge of only one set of standards would berequired to understand all nondomestic statements. However, there is also a case forreconciliation, which presents in an economical manner the significant differences betweennondomestic and domestic financial statements and does not require investors to be familiar withany set of accounting standards other than the home country.b.C ompany management might prefer mutual recognition, as it does not require a company to prepareany additional information and requires no additional expense or time commitments. However,companies in some countries might adopt IFRS voluntarily to increase their credibility withinvestors and increase the overall quality of their financial reporting.c.Regulatory authorities might prefer reconciliation as it places the burden on companies yet providesadequate disclosure and investor protection.d.S tock exchanges might prefer convergence as it is the only method that provides truly complete andidentical information disclosure from companies outside the home market.e.Professional associations will take positions according to their constituents –associations ofstockbrokers might prefer convergence to the extent that it would make company informationeasier to understand, whereas associations of company executives might prefer reciprocity.2.The following discussions are based on the respective organizations’ Web sites at the time of writing.International Federation of Accountants (IFAC)IFAC, an organization of national professional accountancy organizations, plays a critical role in the convergence of auditing standards and other international auditing initiatives. The organization has over 160 member organizations in 120 countries, representing more than 2.5 million accountants. Organizedin 1977, IFAC’s goal is to develop the accountancy profession and converge its professional standards worldwide to enable accountants to provide services of consistently high quality in the public interest.To achieve its objective, IFAC develops and promotes technical, professional and ethical standards for accountants, provides leadership on emerging issues, and serves as a voice for the world’s accountants on issues of public and professional concern. IFAC fosters the advancement of strong national professional accountancy organizations, and works closely with regional accountancy organizations and outside agencies to accomplish this.The IFAC Council, comprised of one representative from each member body, provides overall leadership of IFAC. The council elects the IFAC Board, and is responsible setting policy and overseeing IFAC operations, the implementation of programs, and the work of IFAC’s standard settin g groups and committees. The Public Interest Oversight Board (PIOB), an independent board, provides additional oversight. Day-to-day administration is provided by the IFAC chief executive located in New York, which is staffed by accounting professionals from around the world.IFAC’s professional work is done through its standard setting boards and standing committees. IFAC standard setting boards are:•International Accounting Education Standards Board•International Auditing and Assurance Standards Board•International Ethics Standards Board for Accountants•International Public Sector Accounting Standards BoardIFAC standing committees are the following:•Compliance Advisory Panel•Developing Nations Committee•Nominating Committee•Professional Accountants in Business Committee•Small and Medium Practices Committee•Transnational Auditors CommitteeIFAC issues standards in these key areas: auditing, assurance, and related services; education; ethics; and public sector accounting. IFAC’s International Aud iting and Assurances Standards Board issues International Standards on Auditing (ISA), which are intended for international acceptance. ISAs deal with topics such as auditors’ respo nsibilities, risk assessment and evidence, and audit reporting.IFAC has close ties with organizations such as the IASB and IOSCO, and its pronouncements are receiving growing recognition for their quality and relevance. Financial statements of companies around the world are increasingly being audited in conformity with International Standards on Auditing.United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR)ISAR was created in 1982 and is part of the United Nations’ Conference on Trade and Development (UNCTAD). ISAR is the only intergovernmental working group devoted to accounting and auditing at the corporate level. Its objective “is to promote the transparency, reliability and comparability of corporate accounting and reporting as well as to improve disclosures on corporate governance by enterprises in developing countries and countries with economies in transition. ISAR achieves thisthrough an integrated process of research, intergovernmental consensus building, information dissemination and tech nical cooperation.”In recent years, ISAR focused on important topics that other organizations were not yet ready to address, such as environmental accounting. It has also conducted technical assistance projects in a number of areas such as accounting reforms and retraining in the Russian Federation, Azerbaijan and Uzbekistan, and designing and developing a long-distance learning program in accountancy for French-speaking Africa. Topics discussed at recent ISAR conferences include practical implementation of IFRS, corporate responsibility reporting, and corporate governance disclosures.Organization for Economic Cooperation and Development (OECD)OECD is the international organization of 30 (mostly industrialized) market economy countries. It functions through its governing body, the OECD Council, and its extensive network of committees and working groups. Its publication Financial Market Trends, issued two times each year, assesses trends and prospects in the international and major domestic financial markets of the OECD area.The OECD often publishes reports on the structure and regulation of securities markets, and has played a leading role in promoting improved corporate disclosure and governance around the world. With its membership consisting of larger, industrialized countries, the OECD is often a counterweight to other bodies (such as the United Nations and the International Confederation of Free Trade Unions) that have built-in tendencies to act contrary to the interests of its members.3.As an example, consider the Financial Accounting Standards Board (FASB) in the United States. The FASB’s Web site presents detailed information on the FASB’s international activities, including an overview, convergence with IASB, cooperative efforts with other standards setters, and the FASB/IASB memorandum of understanding.The FASB’s objective for participating in international activities is to increase the international comparability and the quality of standards used in the United States. This objective is consistent with the FASB’s obligation to its domestic constituents, who benefit from comparability of information across national borders. The FASB pursues that objective in cooperation with the International Accounting Standards Board (IASB) and national standard setters.The FASB believes that the ideal outcome of cooperative international accounting standard-setting efforts would be the worldwide use of a single set of high-quality accounting standards for both domestic and cross-border financial reporting. At present, a single set of high-quality international accounting standards that is accepted in all capital markets does not exist. In the United States, for example, domestic firms that are registrants with the SEC must file financial reports using U.S. GAAP. Foreign firms filing with the SEC can use U.S. GAAP, their home country GAAP, or international standards – although if they use their home country GAAP or international standards, foreign issuers must provide a reconciliation to U.S. GAAP.The FASB engages in a variety of activities in pursuit of the goals of high-quality international standards and increased convergence of the accounting standards used in different nations. Almost every FASB project is a matter of interest in some other country or with the IASB.4. a. Comparison of standard-setting proceduresEuropean UnionAccounting and auditing requirements are established under EU company law directives, which are legal instruments that member countries must implement. Thus, all accounting and auditing standards in EU directives become legally enforceable. The EU comprises several key organizations that need to be understood in order to understand how EU directives come into being. Briefly, the European Commission initiates EU policy and acts in the community’s general interest. Commissioners are completely independent and may not seek or take instructions from governments or interest groups. The Council of the European Commission is the EU’s decision-maker. Here, the member states legislate for the EU, deciding some matters by majority vote and others unanimously. The European Parliament represents the EU’s citizens. Its main functions are to enact legislation and to scrutinize and control the use of executive power. The Treaty of European Union of 1993 strengthened the European Parliament’s responsibilities. Only the Commission can propose new directives. Proposals typically undergo many drafts. Proposed directives are submitted to the Council of the European Commission, which first seeks opinions of the Economic and Social Committee and the European Parliament. Next, a working party set up by the Council discusses the proposal. Member countries typically are allowed several years to implement a new directive after its final adoption. (Note to instructors: The information contained in this paragraph is based on information on the EU’s Web site at the time of writing.)IASBThe IASB follows due process in setting accounting standards. For each standard, the Board may publish a discussion paper that sets out the various possible requirements for the standard and the arguments for and against each one. Subsequently, the Board publishes an exposure draft for public comment, and then examines the arguments put forward in the comment process before deciding on the final form of the standard. An exposure draft and final standard can be issued only when nine (of 14) members of the board vote in favor of it.IFACThe standard setting boards of IFAC also follows a due process procedure. Meetings to discuss the development and approval of standards are open to the public and, where practicable, are broadcast over the Internet. Issues papers and draft standards are published on the IFAC Web site along with updated project summaries and meeting highlights. New projects are based on a review of national and international developments and comments from interested observers. An advisory group is consulted to determine priorities and activities. Task forces are usually assigned the responsibility for the development of new standards. These task forces conduct research and consult interested parties on the issues under consideration. One or more public forums or roundtables may be held before an exposure draft is issued. Re-exposure is sometimes necessary. Final standards are issued after considering comments to the exposure draft. (Note to instructors: The information contained in this paragraph is taken from IFAC’s Web site at the time of writing.)a.At what types and sizes of enterprises are their standards primarily directed?EU company law directives apply both to public and private companies in the EU, withoutrespect to size.IFRS are financial reporting standards for business whose applicability depends on thecontext. For example, if IFRS are adopted as national accounting standards in a particularcountry, their applicability depends on the type of entities that are subject to those nationalstandards.IFAC’s standards are directed toward the audits of both public and private companies.In summary, all three sets of standards are meant to apply to most (if not all) enterprises,without regard to size or whether the enterprises are private or public.b.B rief critique of statementIt is true that IFRS are particularly useful to companies that operate in more than one country,because IFRS are widely recognized and are acceptable in many different countries and stockexchanges. However, as stated in the text, IFRS also are used as the basis for nationalaccounting standards in many countries, and these national standards typically apply to a widerange of companies, not just multinational companies.5. Following is a sample essay on the 1995 European Commission adoption of a new approach to accounting harmonization. The essay is based on material in articles by Gerhard G. Mueller, "Harmonization: Efforts in the European Union," in Frederick D.S. Choi, ed., International Accounting and Finance Handbook, New York: John Wiley & Sons, 1997, page 11.28; and Peter Walton, “European Harmonization,” in Frederick D.S. Choi, ed., International Finance and Accounting Handbook, New York: John Wiley & Sons, 2003, page 17.7Beginning in the early 1990s, the Commission examined a number of alternative harmonization strategies. These included, among others, substantive revisions of the existing accounting Directives, creation of a Europe-wide accounting standards-setting board, exempting certain European companies from all EU accounting requirements so that these companies might apply accounting standards of other jurisdictions, or re-enforce its earlier push for mutual recognition.The reality of international pressures and the need of European multinationals to be listed on several stock exchanges finally made it clear that the creation of a strong European regional level of accounting regulation was simply adding an unnecessary third tier, sandwiched between national regulations and the international capital markets.In the end, the European Commission adopted a new accounting harmonization strategy on November 14, 1995 and forwarded respective recommendations to the European Council and to the European Parliament. The essence of the recommendation is that the EU will support the IASC/IOSCO initiatives and work to bring EU accounting requirements in line with International Accounting Standards (IAS). The Commission decided, after many years of hesitation, to participate in IASC standard setting, although only as an observer.In addition, the new harmonization strategy concentrated on consolidated financial statements. It had come to be realized that harmonization of individual company accounts is not necessarily very useful. This decision endorsed a break of the link between individual company accounts and consolidated accounts.The new European Commission’s strategy for EU accountin g harmonization is a major change from the EU accounting harmonization policies that had been in place over the preceding twenty-five years.6.Note to Instructors: Exhibit 8-3 is current at the time of writing. It would be best for you to log on to the IASB Web site, , and complete this exercise yourself before assigning it to students.。

会计学国外教材

会计学国外教材
在国外，一些知名的会计学教材包括：
《Warren Buffett Accounting Book》：作者是Stig Brodersen，本书是会计领域的经典教材之一，对于会计学的基本概念和原则有深入的解析。

《Accounting Principles》：作者是Gregory Becker，本书全面介绍了
会计学的基本原理，为初学者提供了基础的知识体系。

《Intermediate Accounting》：作者是Donald E. Kieso，本书是美国畅销书籍之一，深入解析了GAAP（一般公认会计原则）的概念和实践。

《Essentials of Accounting》：作者是Leslie K. Breitner，本书适合作为入门教材，内容涵盖了会计的基本概念和流程。

《Financial Accounting》：作者是韦尔斯，这本书被广泛用于大学本科的会计课程。

《Management Accounting》：作者是安东尼，本书对管理会计的概念、原则、方法、技巧等方面进行了全面深入的探讨。

《Research Methods in Accounting》：作者是安东尼，本书详细介绍了会计研究的各种方法和技巧。

此外，还有《成本会计学》等书籍，介绍了成本会计的基本概念、原则、方法和技巧，涵盖了成本核算、成本控制、成本分析等方面的内容。

以上书籍仅供参考，如需更多国外会计学教材信息，可以访问图书馆网站或咨询专业人士。

丰田生产的会计思维的书籍英文

丰田生产的会计思维的书籍英文书籍的英文单词是"Book"。

1. I bought a book about Toyota's accounting approach.我买了一本关于丰田会计思维的书。

2. This book explains the accounting mindset of Toyota in detail.这本书详细解释了丰田的会计思维方式。

3. The author of this book delves into Toyota's accounting principles.这本书的作者深入研究了丰田的会计原则。

4. I found the book on Toyota's accounting practices very informative.我发现这本关于丰田会计实践的书非常有启发性。

5. The book provides a comprehensive overview of Toyota's accounting methods.这本书全面介绍了丰田的会计方法。

6. I learned a lot from reading this book about Toyota's accounting mindset.阅读这本书我学到了很多关于丰田会计思维的知识。

7. The book offers valuable insights into the financial strategies of Toyota.这本书为我们提供了有价值的对丰田财务策略的见解。

8. This book is a must-read for anyone interested in Toyota's accounting philosophy.对于对丰田会计理念感兴趣的人来说，这本书是必读之作。

9. The book presents real-life examples to illustrate Toyota's accounting principles.这本书通过真实案例来说明丰田的会计原则。

国际会计第七版课后答案（第五章）作者：弗雷德里克

国际会计第七版课后答案（第五章）作者：弗雷德里克Chapter 5Reporting and DisclosureDiscussion Questions1. Accounting measurement is the process of assigning numerical symbols to eventsor objects. Disclosure, on the other hand, is the communication of accounting measurements to intended users. Advances in financial disclosure are likely to outpace those related to accounting measurement for a number of reasons.First, many would argue that financial disclosure is a less controversial area than accounting measurement. Second, changes in disclosure requirements are more rapidly implemented than changes in accounting measurement rules.Finally, whereas a single set of accounting measurement rules may not serve users equally well under different social, economic and legal systems, a company can disclose without necessarily sacrificing its accounting measurement system.2.Four reasons why multinational corporations are increasingly being heldaccountable to constituencies other than traditional investor groups:a.The development and growth of the influence of trade unions.b.The growing recognition of the view that those who are significantlyaffected by decisions made by institutions in general must be given theopportunity to influence those decisions.c.The rejection by many governments of classical economic premises such asthe belief that the regulated pursuit of private gain maximizessociety’s welfare.d.The increasing concern over the social and economic impact ofmultinational corporations in host countries.3.Arguments in favor of equal disclosure include:a.The absence of equal disclosure would create an unfair playing field forU.S. companies. Non-U.S. companies would have a competitive advantagein that they would not have to disclose the same information and sowould not incur the costs involved in generating and publishing it.b.Investors in non-U.S. companies have the same information needs as thosewho invest in U.S. companies. A market concerned with investorprotection would make sure that investors have timely and materialinformation on all listed companies, not just those domiciled in theUnited States.c.Unequal disclosure might impede cross-company comparisons involving U.S.and non-U.S. companies.Possible reasons against equal disclosure include:a.The high cost of meeting equal disclosure requirements may deter foreignissuers from listing in the United States.b.The extra costs involved work against the benefits of listing to theforeign companies.Evaluation of arguments:All of these arguments have merit. There is no unambiguously correct answer as to what disclosure requirements should be imposed on foreign issuers, and there has been a contentious debate on this subject in the U.S. in recent years. In practice, fairness arguments often carry great weight in public debate, even when objective economic analysis does not support them.4.Managers in Continental Europe and in Japan have for many years stronglyobjected to disclosing information about business segment financial results.These managers have argued that the information can be used by their competitors. In addition, Continental Europe and Japan have had traditions of low disclosure.Requirements for disclosure about segment results have become more stringent in Japan, France, and Germany in response to strong investor and analyst demand for the information. More generally, the three countries are striving to improve the quality of their financial reporting standards in order to improve the reputation and credibility of their capital markets.5.The simple answer is that mandatory disclosures are corporate disclosures madein response to regulatory requirements (for example, rules issued by national regulators or stock exchanges), and thatvoluntary disclosures are purely discretionary in nature. The distinction between mandatory and voluntary disclosures can be ambiguous in some settings, however. For example, the requirement that U.S. companies must file Form 10-Ks with the U.S. Securities and Exchange Commission is straightforward. However, measurement and disclosure approaches for some of the items in the Form 10-K are not.Similarly, there are widely divergent views concerning what types of press announcements are mandatory versus voluntary.Two possible explanations for differences in managers’ voluntary disclosure practices are: (1) Managers in highly competitive industries may be less forthcoming than managers in less competitive industries due to the expected cost of releasing information of potential use to their competitors. (2) Managers are expected to be more forthcoming when there is good news to disclose, than when there is bad news, particularly when the news can be expected to affect share prices.Two explanations for differences in managers’ mandatory disclosure practices are: (1) Cross-jurisdictional differences in disclosure requirements. (2) Differences in the extent of compliance with disclosure rules due to cross-jurisdictional differences in enforcement.6. Triple bottom line reporting refers to reporting on a company’s ec onomic,social, and environmental performance. It is a form of social responsibility reporting designed to demonstrate good corporate citizenship. So-called “sustainability” reports are an increasingly popular means of triple bottom line reporting. There is substantial variation in social reporting today.More regulation would improve comparability, but it might also stifle reporting innovations. The usefulness of social reporting to outside parties, particularly investors, needs to be demonstrated before implementing more regulation for it.6.Often we expect to observe less voluntary disclosure by companies in emergingmarket countries than by those in developed countries:a.Equity markets are relatively less developed in many emerging marketcountries, resulting in lower total demand for company information byinvestors and analysts.b.In many emerging market countries, most financing is supplied by banksand insiders such as family groups. This also leads to less demand fortimely, credible public disclosure, and in these markets enhanceddisclosure may have limited benefits.8. In general, for the same reasons as in Discussion Question 7, we expect toobserve fewer regulatory disclosure requirements in emerging market countries than in developed countries. The equity markets and disclosure requirements in many emerging market countries are not yet well developed, and accounting and auditing systems in emerging market countries are less well developed than in more developed market countries.9. The two broad objectives of investor-oriented equity markets are investorprotection and market quality. In the absence of investorprotection, investors will not be willing to participate in a market. However, in the absence of market quality, markets will not function satisfactorily. Many would consider the objectives equally important.10. It certainly is possible that more required disclosure will further encourageinvestor participation in capital markets by providing more and better information on which to base investment decisions. Benefits of increasedinvestor participation include increased liquidity, reduced transaction costs, and more accurate and efficient market pricing.。