会计学-企业决策的基础-14版-PPT15解析

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Learning Objective
To explain why there is demand for harmonization of global financial reporting standards.
LO3
Country/Standards IFRS United States United Kingdom Germany Brazil Japan
LIFO Used Used Used Not Used Not Used Not Used Used
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Accounting for Transactions with Foreign Companies
On January 1, 2007, a U.S. company purchases equipment from an Italian company for €100,000. The amount is payable in full on that date. On January 1, 2007, the exchange rate is $0.97 per Euro.
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Harmonization of Financial Reporting Standards
Global Variation in Accounting Practices
Auditors per 100,000 Asset Valuation Method Revaluation allowed 168 352 26 1 10 Historic cost Revaluation allowed Historic cost Revaluation allowed Historic cost Depreciation Basis Economic based Economic based Economic based Tax based Economic based Tax based Segment Diclosure Required Yes Yes Yes Limited No Yes
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2008
Accounting for Transactions with Foreign Companies
On January 1, 2007, a U.S. company purchases equipment from an Italian company for €100,000. The amount is payable in full on February 15, 2007. On January 1, 2007, the exchange rate is $0.97 per Euro. At 1/31/07 the spot exchange rate is €1 = $0.96. On 2/15/07, the exchange rate is €1 = $0.98.
Date Description Jan. 31 Accounts payable Gain on rate fluctuation Debit 1,000 Credit 1,000
McGraw-Hill/Irwin
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Accounting for Transactions with Foreign Companies
Foreign Currencies and Exchange Rates
An exchange rate is the amount it costs to purchase one unit of currency with another currency.
Foreign Exchange Rate
McGraw-Hill/Irwin
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Globalization
Globalization typically progresses through a series of stages that include: 1. Exporting
Learning Objective
To demonstrate how to convert an amount of money from one currency to another.
LO4
McGraw-Hill/Irwin
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Chapter
GLOBAL BUSINESS AND ACCOUNTING
15
McGraw-Hill/Irwin
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Learning Objective
To define four mechanisms companies use to globalize their business activities.
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Technology and infrastructure
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Environmental Forces Shaping Globalization
Planned Economy Government owns factors of production
To compute gains or losses on receivables or payables that are stated in a foreign currency when exchange rates fluctuate.
LO5
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Currency Pound (£ ) Euro (€) Yen (¥ ) Peso ($) Rupee (Rs)
¥ 1,000,000 × $0.00764 = $7,640
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Learning Objective
LO2
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Environmental Forces Shaping Globalization
Political and legal system Culture
Globalization
Economic system
2. Licensing
3. Joint ventures
4. Wholly owned subsidiaries
5. Global sourcing.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2008
Learning Objective
Accounting for Transactions with Foreign Companies
On January 1, 2007, a U.S. company purchases equipment from an Italian company for €100,000. The amount is payable in full on February 15, 2007. On January 1, 2007, the exchange rate is $0.97 per Euro. At 1/31/07 the spot exchange rate is €1 = $0.96. On 2/15/07, the exchange rate is €1 = $0.98.
U.S. company purchases €100,000 from financial institution.
Date Jan. 1 Description Equipment Cash (€100,000 x $0.97) = $97,000 Debit 97,000 Credit 97,000
Date Description Jan. 1 Equipment Accounts payable (€100,000 x $0.97) = $97,000 Debit 97,000 Credit 97,000
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2008
Exchange Rate (in dollars) $ 1.74250 0.89490 0.00764 0.10946 0.02045 Exchange Rate (in foreign currency) 0.534 1.117 130.900 9.136 48.889
Country/Region Britain Europe Japan Mexico India
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Harmonization of Financial Reporting Standards
The International Accounting Standards Board (IASB) has as one of its stated goals the harmonization of accounting standards. Harmonization is used to describe the standardization of accounting methods and principles used in different countries throughout the world.
Market Economy People owns factors of production
McGraw-Hill/Irwin
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Hale Waihona Puke Environmental Forces Shaping Globalization
McGraw-Hill/Irwin
LO1
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Globalization
Occurs as managers become aware of and engage in cross-border trade and operations. A high level of globalization is a multinational enterprise that begins with raw material extraction and ends with final product assembly and sales in multiple foreign locations.
To identify how global environmental forces — (a) political and legal systems, (b) economic systems, (c) culture, and (d) technology and infrastructure — affect accounting practices.