国际会计学第六版chapter课件
国际会计学第六版chapter5
Disclosure protects investors, but shareholder protection varies across countries.
Helps users understand how the parts make up the whole
Product lines and areas of the world vary in terms of risks, returns, and opportunities
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Reporting and Disclosure Practices (contin)
International Accounting, 6/e
Frederick D.S. Choi Gary K. Meek
Chapter 5: Reporting and Disclosure
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Learning Objectives
Distinguish voluntary and mandatory disclosure and the applicable regulatory measures.
social, and environmental performance “Triple-bottom line reporting”: profits, people,
planet Increasingly being audited to avoid the charge
国际会计学第六版chapter6
How does the temporal method of currency translation differ from the current rate method?
What is the relationship between currency translation and inflation?
Choi/Meek, 6/e
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How does a translation gain or loss differ from a transactions gain or loss?
Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Facilitates reporting domestic accounts to foreign audiences-of-interest.
Choi/Meek, 6/e
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Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
At each balance sheet date, recorded balances denominated in a currency other than the functional currency of the reporting entity is adjusted to reflect the current exchange rate.
国际会计学第六版chapterPPT课件
Direct quote: the exchange rate specifies the number of domestic currency units needed to acquire a unit of foreign currency.
Indirect quote: the exchange rate specifies
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
Facilitates the measurement of a firm’s exposure to foreign exchange risk.
Choi/Meek, 6/e
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Facilitates the recording of foreign currency transactions; i.e., foreign currency sales, purchases, borrowing or lending in the consolidated entity’s reportingifference between a spot, forward, and swap transaction?
国际会计学第六版chapter6-
increases or decreases in the reporting
currency equivalent of the foreign currency.
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Current rate: the exchange rate prevailing as of the financial statement date. Changes the reporting currency equivalent of a foreign currency item whenever exchange rates change. Use of the current rate gives rise to translation gains and losses.
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 6:
Foreign Currency Translation
Choi/Meek, 6/e
1
Learning Objectives
Why do firms translate from one currency to another?
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
国际会计学第六版chapter6
Choi/Meek, 6/e
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Why do Firms Translate?
Facilitates the preparation of consolidated financial statements that allow readers to see the performance of a multinational company’s total operations both domestic and foreign.
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
Preserves the original cost equivalent of a foreign currency item in the reporting currency.
Use of historical rates do not give rise to
translation gains or losses, which are
How does the temporal method of currency translation differ from the current rate method?
What is the relationship between currency translation and inflation?
国际会计学第六版chapter8
国际会计学第六版chapter8国际会计学第六版弗雷德里克.D.S.乔伊课件International Accounting, 6/e Frederick D.S. Choi Gary K. MeekChapter 8: Global Accounting and Auditing Standards1国际会计学第六版弗雷德里克.D.S.乔伊课件Learning ObjectivesDefine and understand the distinction between “harmonization” and “convergence” as they apply to accounting standards. State the pros and cons of adopting international accounting standards. Understand what is meant by “reconciliation” and “mutual recognition” of different sets of accounting standards.2国际会计学第六版弗雷德里克.D.S.乔伊课件Identify the six organizations that have leading roles in setting international accounting standards and promoting international accounting convergence. Describe the structure of the International Accounting Standards Board and how it setsInternational Financial Reporting Standards. Understand the major provisions of the U.S. Sarbanes-Oxley Act and why similar legislation is being enacted in other countries.3国际会计学第六版弗雷德里克.D.S.乔伊课件Standardization, Harmonization, and ConvergenceStandardization Rigid, narrow set of rules One-size-fits-all approach Less flexible than harmonization or convergence Not the current thinking4国际会计学第六版弗雷德里克.D.S.乔伊课件HarmonizationStandards that are patible C no logical conflicts Means the elimination of differences among existing accounting standards ConvergenceMeans the gradual elimination of differences in accounting standards But might also involve a new accounting treatment not in any current standard Involves cooperative efforts of IASB and national standard-setters Now the preferred term over harmonization5国际会计学第六版弗雷德里克.D.S.乔伊课件A Survey of International ConvergenceAdvantages of international convergenceInvestor understanding and confidence is improved. Investor decision making is improved. Capital is allocated more efficiently around the world. Financial risk and cost of capital are reduced. Strategic decision making in mergers and acquisition is improved.6国际会计学第六版弗雷德里克.D.S.乔伊课件Criticisms of international standardsSolution is too simple for such a plex problem. Strips accounting of its flexibility to adapt to different situations. Challenges national sovereignty. A tactic of large accounting firms to expand their market share. May create standards overload.7国际会计学第六版弗雷德里克.D.S.乔伊课件A Survey of International ConvergenceReconciliation and mutual recognition ReconciliationFinancial statements based on home GAAP, but net e and stockholders’ equity reconciled to another GAAP. This is the SECrequirement for foreign filers. Less costly than preparing plete financial statements based on another GAAP. But a summarized, plete picture.8国际会计学第六版弗雷德里克.D.S.乔伊课件Mutual recognition (reciprocity)Jurisdictions accept financial statements based on each other’s GAAP. Does not improve parability. Can create an unlevel playing field.EvaluationArguments on both sides have merit. But convergence and international standards are a reality.9国际会计学第六版弗雷德里克.D.S.乔伊课件Some Significant Events in the History of International Accounting Standard Setting1959 C Jacob Kraayenhof issues first significant proclamation that work on international standards should begin 1973 C IASC creat国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件国际会计学第六版弗雷德里克.D.S.乔伊课件。
国际会计学第六版chapter6-
What exchange rates are used in the currency translation process and what are their financial statement effects?
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 6:
Foreign Currency Translation
Choi/Meek, 6/e
1
Learning Objectives
Why do firms translate from one currency to another?
Gain or loss on an unsettled transaction: arises whenever consolidated financial statements are prepared before settlement and the current rate has changed since the transaction date.
Is similar to a translation gain or loss as it results from a restatement process.
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Types of Translation Methods
Single rate method: applies a single exchange rate, the current , to all foreign currency assets and liabilities.
国际会计学第六版cha(1)
Development (contin)
Level of economic development
Affects the types of transactions and which ones are most prevalent in the economy which, in turn,
Are financial accounting and taxation the same?
Or are they different?
Political and economic ties
Accounting ideas and technologies are transferred through conquest, commerce, and other forces.
Have a basic working knowledge of accounting classifications and how they compare with one another.
Explain the difference between the “fair presentation〞 and “legal compliance〞 orientations of accounting and identify nations in which each is prevalenapproach
Accounting derived from microeconomics.
▪ Maintaining physical capital ▪ Separation of capital and income ▪ Replacement costs
国际会计学第六版chapter_6-42页文档资料
Choi/Meek, 6/e
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Types of Translation Methods
Single rate method: applies a single exchange rate, the current rate, to all foreign currency assets and liabilities.
Choi/Meek, 6/e
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How does a translation gain or loss differ from a transactions gain or loss?
Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Preserves the original cost equivalent of a foreign currency item in the reporting currency.
Use of historical rates do not give rise to
translation gains or losses, which are
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
国际会计学第六版chapter6
• The forward market handles agreements to exchange a fixed amount of one currency for another on an agreed date in the future.
Swap 掉期市场（P128）
FC Transactions
Spot 即期市场（P128）
• In the foreign exchange spot market, currencies
bought and sold must be delivered immediately,
normally within 2 business days
forward premium(discount)=(forward rate –spot rate)/spot rate × 12/n
($0.8462-$0.8318)/$0.8318×12/6=3.4% Indirect quote: forward premium(discount)=(spot rate-
forward rate)/forward rate × 12/n
Spot & Foward exchange rate
Bid quote 买方出价
• Is what the foreign exchange dealer would pay you for foreign currency.
• The forward market handles agreements to exchange a fixed amount of one currency for another on an agreed date in the future.
国际会计学第六版chapter(4)幻灯片PPT
OEC – Institute of Public Accountants
Represents the accounting profession
Members prepare financial
statements, and provide tax,
information systems, and
Finance leases – capitalized; operating leases – expensed
Provisions – recognized when probable and estimable
Deferred taxes – recognized in full, using
国际会计学第六版 chapter(4)幻灯片PPT
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Learning Objectives
Understand how financial reporting is regulated and enforced in five European countries: France, Germany, the Czech Republic, the Netherlands, and the U.K.
Describe the key similarities and differences between the accounting systems of these five countries.
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Identify the use of International Financial Reporting Standards at the levels of the individual company and the consolidated financial statements in these five countries.
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Development of Disclosure
Voluntary disclosure
Voluntary disclosures are increasing as investors demand more detailed and timely information.
But managers’ incentives for disclosure aren’t always aligned with those of investors.
International Accounti. Meek
Chapter 5: Reporting and Disclosure
1
Learning Objectives
Distinguish voluntary and mandatory disclosure and the applicable regulatory measures.
Disclosure regulations and third party certification can improve the functioning of capital markets.
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Development of Disclosure (contin)
Regulatory disclosure requirements
Stock exchanges want to be sure that investors have enough information to evaluate a company’s performance and prospects.
Disclosure protects investors, but shareholder protection varies across countries.
Must reconcile net income and stockholders’ equity to U.S. GAAP if the registrant uses another GAAP.
Do SEC requirements deter foreign companies from listing their securities in the U.S.?
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Reporting and Disclosure Practices
Forward-looking information Includes
Forecasts of revenues, income, cash flows, capital expenditures
Prospective information about future economic performance or position
Or do the requirements protect investors and ensure the quality of U.S. capital markets?
Sarbanes-Oxley requirements are also believed to deter foreign companies from listing in the U.S.
Statements of management’s plans and objectives for future operations
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Softer information about future prospects is more common than precise forecasts. Why?
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Twin objectives of investor oriented markets (Frost and Lang 1996):
Investor protection ▪ Investors are provided with material information. ▪ And are protected through monitoring and enforcement.
Market quality ▪ Markets are fair, orderly, and efficient. ▪ And free from abuse and misconduct.
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SEC financial reporting debate
Foreign registrants must furnish financial information substantially similar to that required of domestic companies.
Identify the broad objectives for accounting disclosure systems in investor-oriented equity markets.
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Discuss “triple-bottom line” reporting and why it is a growing tendency among large multinational corporations.