国际会计第七版课后答案(第三章)
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。
国际会计第七版课后答案(第四章) 作者：弗雷德里克
Chapter 4Comparative Accounting: The Americas and AsiaDiscussion Questions1. Public and private sector bodies are involved in regulating and enforcing financial reporting in theUnited States. The Financial Accounting Standards Board is a private sector body that determines U.S. generally accepted accounting principles. The Securities and Exchange Commission has the authority to determine U.S. GAAP for publicly held companies, but defers to the FASB. The FASB and SEC have a close working relationship that ensures that FASB standards are acceptable to the SEC. The SEC enforces financial reporting rules for publicly held companies. It actively reviews the filings that companies make. Auditors are the enforcers for non-publicly held companies.Accounting standards in Mexico are issued by the Council for Research and Development of Financial Information Standards (CINIF), an independent public-private sector body patterned after the U.S. FASB. Its authority for issuing Mexican accounting standards is recognized by the National Banking and Securities Commission, the government agency that regulates the Mexican Stock Exchange. The Commission is responsible for enforcing financial reporting standards for listed companies. However, it is unclear how proactive the Commission is in investigating filings that it receives. Enforcement of financial reporting for non-listed companies effectively rests with auditors.Japanese accounting standards are set by a private sector body, the Accounting Standards Board of Japan. The establishment of the ASBJ is a recent development in Japan. Before, accounting standard setting was a government activity. Enforcement of financial reporting effectively rests with auditors. The stock exchange is regulated by the Financial Services Agency, a government body. However, it is unclear how proactive the FSA is in monitoring financial reporting by Japanese companies.Accounting standard setting is a government activity in China. The China Accounting Standards Committee is the authoritative body within the Ministry of Finance responsible for developing accounting standards. The China Securities Regulatory Committee is the government agency that regulates China’s two stock exchanges. The CSRC is also responsible fo r enforcing financial reporting for listed companies. Many question the effectiveness of the Chinese enforcement mechanism.The Institute of Chartered Accountants in India, a private sector professional body, develops accounting standards in India. The Securities and Exchange Board of India, an agency of the Ministry of Finance, regulates India’s 22 stock exchanges and is responsible for enforcing financial reporting rules. However, it is unclear how proactive the board is in monitoring financial reporting by Indian companies.Overall, the five countries vary in terms of private versus public sector responsibility for regulating and enforcing financial reporting. Enforcement is questionable in several countries.The United States has the strongest mechanism for regulating and enforcing financial reporting of the five countries.2. The United States and India are common law countries that have fair presentation orientedfinancial reporting. Mexico also has fair presentation oriented financial reporting because of U.S.influence. In addition, Mexico has inflation-adjusted accounting, in contrast to the other four countries. Japan is a code law country and its accounting has traditionally been characterized as conservative and tax-driven, just like other code law countries (such as France and Germany discussed in Chapter 3.) However, it is moving to fair presentation because of its commitment to converge Japanese accounting standards with IFRS. China is likewise moving toward fair presentation oriented accounting by adopting IFRS as Chinese GAAP. Despite adopting fair presentation principles, one can question whether the Chinese achieve it in application. There is an acute shortage of trained accountants in China and the profession remains undeveloped. The accounting profession is strong in the other four countries, including the “developing” economies of India and Mexico.3.The auditor oversight bodies discussed in this chapter are:a.United States – Public Company Accounting Oversight Boardb.Japan – Certified Public Accountant and Auditing Oversight BoardThe recent establishment of independent auditor oversight bodies in the United States and Japan is in response to recent worldwide accounting scandals. Both represent tightening control over auditors.4. Tax legislation pays a limited role in all five countries, with the exception of Japan. In the UnitedStates, financial and tax accounting are separate except for LIFO. Tax legislation has little influence on financial reporting practices in Mexico. For example, there are numerous differences between financial and tax accounting, such as the calculation of cost of sales, depreciation, and goodwill amortization. Tax legislation has traditionally been one side of the “triangular legal syste m” in Japan, exerting an influence on Japanese accounting standards. However, the influence of taxation is declining with the alignment of Japanese accounting standards to IFRS.Several years ago, tax legislation had some influence in China, but this has waned as China develops a more complete set of financial reporting standards. India, like other common law countries, separates financial and tax accounting.4.This question has been of interest in academia for quite some time. Is accounting expertise anecessary precondition for economic development, or can an economy advance without it? It would seem that an economy cannot advance very far without accounting expertise. But the relationship probably works both ways, just like demand creates supply and vice-versa.The example of China demonstrates the importance of developing accounting (standards, knowledge, etc.). Accounting is a part of the market reform packages in China, so the need has been recognized from the start. Mexico and India have been market-oriented longer than China, and their accounting is more developed. But again, it is apparent in these two countries that accounting supports economic development.6. U.K. standards (Chapter 3) and IFRS (Chapter 8) are said to reflect principles-based standards,while U.S. standards (this chapter) are said to be rules-based. Generally speaking, principles-based standards set forth broad objectives and fundamentals and require professional judgment for their implementation. They are more flexible than rules-based standards and are likely to result in more divergence in practice. Rules-based standards are more specific in their requirements and have more detailed implementation guidance than principles-based standards.They are likely to result in more comparability than principles-based standards, but are said tofoster a “check the box” mentality. The chapter says that U.S. GAAP is “probably more voluminous than in the rest of the world combined and substantially more detailed than in any oth er country.” Thus, one can argue that U.S. GAAP is rules-based.7. The U.K. and U.S. both follow fair presentation accounting, reflecting economic substance ratherthan legal form. Both the U.K. “true and fair” and the U.S. “presents fairly” reflect fa ir presentation. However, the U.K. has a true and fair override –accounting standards can be overridden if necessary to achieve a true and fair view. In the U.S., presents fairly means that generally accepted accounting principles have been followed.8. The most important reconciling item (i.e., the most significant difference between Mexican andU.S. accounting) relates to the use of general price level accounting in Mexico. Strict historical cost is used in the U.S. Two other differences noted in the chapter are (a) Mexico applies the equity method at 10 percent, whereas the U.S. applies it at 20 percent and (b) in Mexico development costs are capitalized and amortized after technological feasibility has been established; in the U.S., they are expensed.9.The bursting of the Japanese bubble economy in the 1990s prompted a review of Japanese financialreporting standards. It became clear that many accounting practices hid how badly many Japanese companies were actually doing. The accounting “big bang” was designed to make the financial condition of Japanese companies more transparent and bring Japanese accounting more in line with international norms.Practice changes include the following:a.Requiring listed companies to report a statement of cash flows.b.Subsidiary companies are consolidated based on control rather than ownership.c.Affiliated companies are accounted for using the equity method based on influence ratherthan ownership.d.Investments in securities are valued at market rather than cost.e.Deferred taxes are fully provided.f.Pension and other retirement obligations are accrued in full.10.Full and complete disclosure of reliable, evenhanded information is necessary to develop a fairand efficient stock market. The “Anglo-Saxon” model of a ccounting (discussed in Chapter 2), emphasizing a fair presentation of financial condition and results, and emphasizing stewardship, also fosters the development of a fair and efficient stock market. Countries with this accounting orientation (such as the U.S. and U.K.) have active, fair and efficient stock markets. There is alsoa legal structure and an effective enforcement of laws and accounting disclosures to make it allwork.China is developing accounting standards with the stock market orientation discussed above. So China is on the right track here –the standards themselves will support the development of a stock market. In addition, investors must have confidence that the standards are being followed,i.e., that the information disseminated by companies is reliable. Thus, good auditing by well-trained accounting professionals is important. China may have difficulty developing anaccounting profession, which would in turn be a hindrance to stock market development. China must also overcome the culture of secrecy developed under communism.11.The chapter mentions a number of examples where Chinese accounting standards are consistentwith world class practices. A selective list of the more important ones are the following:parative, consolidated financial statements including a balance sheet, incomestatement, cash flow statement, and notes.b.Accrual basis for recognizing revenues and expenses, matching, and consistency.c.Purchase method for business combinations with annual impairments test.d.Equity method for nonconsolidated affiliates.e of historical cost.f.Finance leases capitalized.12. The British influence on accounting in India is clear. India has a common law legal system andfair presentation accounting that accompanies it. Like Britain, financial statements must give a true and fair view and there is a strong self-regulated accounting profession. Professional accountants (auditors) are called chartered accountants in both countries. The financial reporting and accounting measurements described in this chapter for India are very similar to those described in Chapter 3 for the United Kingdom.Exercises1. United Statesa.Financial Accounting Standards Board.b.Securities and Exchange Commission.Mexicoa.The Council for Research and Development of Financial Information Standards.b.There is no definitive enforcement agency. However, the National Banking andSecurities commission regulates the Mexican Stock Exchange.Japana.The Accounting Standards Board of Japan.b.The Financial Services Agency for listed companies under the securities law and theMinistry of Justice, when company law is involved.Chinaa.The Chinese Accounting Standards Committee under the Ministry of Finance.b.The Chinese Institute of Certified Public Accountants, under the jurisdiction of theMinistry of Finance, regulates auditing.Indiaa.Institute of Chartered Accountants of India.b.Institute of Chartered Accountants of India.2.At the time of writing, the following organizations were linked to IFAC’s website:United StatesInstitute of Management AccountantsAmerican Institute of Certified Public AccountantsNational Association of State Boards of AccountancyMexicoInstituto Mexicano de Contadores PúblicosJapanJapanese Institute of Certified Public AccountantsChinaChinese Institute of Certified Public Accountants3.The question asked for five expressions, terms, or short phrases unfamiliar or unusual in thestudent’s home country. Taking the United States as the home countr y, here are twelve:a.Triangular legal system – A description of accounting regulation in Japan consisting ofthe interacting Company Law, Securities and Exchange Law, and Corporate Income TaxLaw.b.Socialist market economy – Used in China to describe its planned economy with marketadaptations.nd and industrial property rights –Still owned by the Chinese government, privatecompanies acquire the right to use these industrial assets.d.Pesos of current purchasing power – A term to describe general price level accounting inMexico.e.Tax compliance audit report –Mexican auditors must attest that no irregularities wereobserved regarding compliance with tax laws.f.Statement of changes in financial position –the financial statement in Mexico thatcorresponds to the statement of cash flow. However, the statement of changes infinancial position is prepared in constant pesos (adjusted for inflation), while the cashflow statement uses historical cost.g.Seniority premiums –compensation paid in Mexico at the termination of employmentbased on how long the employee has worked.h.Keiretsu– Interlocking giant conglomerates in Japan.i.Guanxi– Relationship culture in China that is based on mutuality and mutual duties.j.B-shares – Shares issued to foreign investors by Chinese listed companies.k.True and fair view – The requirement in India that financial statements present a true and fair view came from Britain.l.Amalgamation – The term used in India for a merger.4. The most important financial accounting practice or principle at variance with international normsis probably the following:United States – LIFO. Driven by tax law considerations, no other country uses LIFO to the extent found in the U.S. LIFO reduces reported earnings. Because older, lower costs of inventory are shown on the balance sheet, the debt to asset ratio will be higher. Companies using LIFO must report so-called LIFO reserves that enable an analyst to convert LIFO amounts to FIFO amounts.Mexico– Inflation adjustments. Most countries in the world value assets and related expenses at historical cost; few countries incorporate inflation adjustments. With inflation adjustments, earnings will be lower and the debt to asset ratio will probably be lower as well. It is unlikely that an analyst will be able to adjust Mexican accounts to historical cost. Of course, such an adjustment is unwise, given high inflation.Japan–Pooling of interests method for business combinations where no party obtains control over the other. The international norm is to treat all business combinations as a purchase.Compared to purchase accounting, pooling results in higher income and lower asset values.Therefore, the debt to asset ratio will be higher. An analyst will be unable to adjust for this accounting method.China– Showing the right to use land and industrial property owned by the government as an intangible asset. China is unusual in the extent to which the government owns land and industrial property. As long as these intangibles are fairly valued, there will be no effect on reported earnings or the debt to asset ratio. However, the analyst must realize that the intangible asset shown on a Chinese company’s balance sheet is a tangible asset on the balance sheets of companies from other countries.India– Pooling of interests method for amalgamations (mergers). As noted above for Japan, the international norm is to treat all business combinations as a purchase. Compared to purchase accounting, pooling results in higher income and lower asset values. Therefore, the debt to asset ratio will be higher. An analyst will be unable to adjust for this accounting method.5. At the time of writing, the following numbers are reported by the World Federation of StockExchanges:The significant number of listed companies in India may be surprising. It may also be surprising that the number of listed Japanese companies matches the numbers for the United States. Another potential surprise is the fact that the Mexican Stock Exchange has more foreign listed firms than domestic listed firms. Students will probably speculate that most of the foreign listed firms in Mexico are from other Latin American countries, a statement that is in fact true. The lack of foreign listed firms in China and India has two possible explanations –either the government does not allow foreign firms to list on domestic exchanges, or companies do not see these stock markets as an attractive place to raise capital. The latter explanation is why there are so few foreign listed firms in Japan.5.A comparison of the countries in Exhibit 4-5 reveals few differences among the United States,Mexico, and China. Thus, all three countries can claim that their GAAP are comparably oriented toward equity investors. However, of the three countries, the United States can probably claim to have GAAP most oriented toward equity investors. The chapter notes that the U.S. has the most voluminous and detailed accounting requirements in the world and that they are rigorously enforced. Thus, the nod goes to the United States.India and Japan both allow pooling of interests accounting, an accounting treatment now at variance with international norms. The treatment of goodwill in these two countries is also at variance with international norms. In addition, Japan’s lea se accounting treatment is at variance with international norms. Thus, Japan seems to be the country whose GAAP is least oriented toward equity investors.6.At the time of writing, the following companies are listed on the New York Stock Exchange fromMexico, Japan, India, and China:MexicoAmerica MovilCemexCoca-Cola FEMSADesarrolladora HomexEmpresas ICAFomento Economico MexicanoGRUMAGrupo Aeroportuario del PacificoGrupo Aeroportuario del SuresteGrupo Casa SabaGrupo Radio CentroGrupo TelevisaGrupo TMMIndustrias BachocoTelefonos de MexicoVitroJapanAdvantestCannonHitachiHonda MotorKonamiKubotaKyoceraMatsushita Electric IndustrialMitsubishi UFJ Financial GroupMizuho Financial GroupNidecNippon Telegraph and TelephoneNIS Group Co.Nomura HoldingsNTT DoCoMoOrixSonyTDKToyota MotorIndiaDr. Reddy’s LaboratoriesHDFC BankICICI BankMahanagar Telephone NigamPatni Computer SystemsSatyam Computer ServicesTata MotorsVidesh Sanchar NigamWiproWNS HoldingsChinaAluminum Corporation of ChinaAmerican Oriental BioengineeringChina Eastern AirlinesChina Life InsuranceChina MobileChina Netcom GroupChina Petroleum and ChemicalChina Southern AirlinesChina TelecomChina UnicomGuangshen RailwayHuaneng Power InternationalMindray Medical InternationalNew Oriental Education and TechnologyPetroChinaSemiconductor Manufacturing InternationalSinopec Shanghai PetrochemicalSuntech Power HoldingsTrina SolarYanzhou Coal MiningMexico has 16 companies listed on the NYSE, ranking third after Brazil (35) and Chile (17).This is perhaps surprising given the strong economic links between the United States and Mexico discussed in the chapter. One would expect Mexico to have the most of any Latin American country. Of the countries in the Asia-Pacific region, China has the most number of companies listed on the NYSE (20); Japan is second (19); and India is third (10). As discussed in the chapter, the economies of China and India are growing rapidly. The relatively large numbers of NYSE listed Chinese and Indian companies probably reflect a need for capital by their larger companies. That Japan has approximately the same number of NYSE listed companies as China is perhaps surprising. However, the chapter discusses how debt financing dominates equity financing in Japan.8. a. The two major areas of difference are asset valuation and accounting for goodwill. In theU.K., assets may be valued at historical cost, current cost, or a mixture of the two. Whenfixed assets are revalued, depreciation and amortization must be calculated using therevalued amounts. Only historical cost is allowed in the U.S. In the U.K., goodwill canbe impairments tested, as in the U.S., but may also be amortized over 20 years or less.Other differences between U.K. and U.S. GAAP relate to LIFO and the calculation of long-term deferred taxes. LIFO is rarely used in the U.K., but is relatively more commonin the U.S. In the U.K., long-term deferred taxes may be valued at discounted presentvalue. Finally, opportunities for income smoothing are probably greater in the U.K. thanin the U.S.b.Research has documented that U.S. GAAP earnings is systematically moreconservative than U.K. GAAP earnings (see, for example, P. Weetman and S.J. Gray,International Financial Analysis and Comparative Corporate Performance: The Impactof U.K. versus U.S. Accounting Principles on Earnings, Journal of InternationalFinancial Management and Accounting(Summer & Autumn 1990), pp. 111-130).However, many of the accounting principles on which this research study is based havenow changed.Goodwill accounting should result in a more conservative income amount for U.K.companies if they systematically amortize it over 20 years. However, the occasionalimpairments write-downs that U.S. companies will have will result in a lower incomeamount in the year of write-down. The use of LIFO in the U.S. will result in moreconservatively measured U.S. income amount. However, U.K. companies will reportlower earnings if assets are revalued, because corresponding depreciation charges will behigher. The effects of U.K. smoothing activities are unclear, but it seems likely thatcompanies would be more inclined to smooth toward higher earnings rather than lower.On balance, we think that U.S. companies will have somewhat more conservativeearnings amounts, but U.K and U.S. GAAP are converging.9. The chapter identifies the following major changes that have occurred since the Japanese “bigbang”:rge companies must prepare consolidated financial statements, not just listed ones.b.Listed companies must report a statement of cash flows.c.Consolidation is based on control rather than ownership.e of the equity method is based on significant influence rather than ownership.e.Goodwill is calculated based on fair market value of net assets acquired rather than bookvalue.f.Goodwill is amortized over 20 years rather than 5 years. It is also impairments tested.g.Investments in securities are valued at fair market value rather than cost.h.Inventory is valued at the lower of cost or net realizable value rather than cost.i.Deferred taxes are now fully provided.j.Pension and other retirement obligations are now fully accrued.k.Research and development is now expensed rather than deferred in some cases.l.For foreign currency translation, revenues and expenses are now translated at the average rate (rather than a choice between year-end or average rates) and the translationadjust ment is in stockholders’ equity (rather than shown as an asset or liability).10.The chapter identifies the following major changes that have occurred in Chinese accounting sincethe 1990s:a.The ASBE issued in 2006 represent a comprehensive set of Chinese accounting standardsthat are substantially in line with IFRS.b.The ASBE issued in 2006 also contains auditing standards similar to InternationalStandards on Auditing. All Chinese accounting firms and auditors are required to followthese audit standards.c. A cash flow statement is now required.d.Goodwill is impairments tested rather than amortized.e of the equity method is based on influence rather than ownership percentage.f.Consolidation of subsidiary companies is based on control rather than ownershippercentage.g.Foreign currency translation of overseas subsidiaries is based on the primary economicenvironment in which they operate.h.Tangible assets are depreciated over their expected useful lives rather than based on taxlaw.i.Lower of cost or market is now used to value inventory.j.LIFO is no longer an acceptable inventory costing method.k.Finance leases are now capitalized.l.Deferred taxes are now provided in full for all temporary differences.m.Contingent obligations are now provided for when they are both probable and a reliable estimate can be made of their amount.11.12. a. Japan and India allows pooling, while the others do not. Pooling usually results in lowernoncurrent asset amounts and higher income amounts. Goodwill and subsequentamortization is also excluded under pooling. To the extent that pooling is used byJapanese and Indian companies, they are likely to have higher debt to equity and debt toasset ratios. The numerator (return) and the denominators (assets and equity) in the twoprofitability ratios should all be higher, but the effect on the ratio is indeterminate.Liquidity ratios should be unaffected.b.Japan and India both require goodwill to be capitalized and amortized. This should haveno effect on the either liquidity ratio. The amortization will result in a lower amount ofincome going to retained earnings. Thus, the debt to equity ratio will be higher than whatit would be without amortization. The debt to asset ratio will also be higher. The effecton the profitability ratios is unclear. The numerator (income) will be lower than what itwould be without amortization. However the denominators in each case (assets andequity) will also be lower.c.The equity method is used in all five countries, so there is no effect on comparative ratios.d.Price-level adjusted accounting is practiced in Mexico and Indian companies may revaluetheir tangible assets to current values. The result is higher asset values, higher equity, and lower income (because of higher depreciation and cost of goods sold charges), compared to historical cost. The current ratio will be higher, but cash flow from operations to current liabilities will be unaffected. Both solvency ratios will be lower because their denominators (assets and equity) will be higher. Both profitability ratios will be lower. The numerator (income) will be lower and the denominators (assets and equity) will be higher.e.Depreciation in Japan is tax-based, which is normally higher than economics-baseddepreciation. This will reduce income and lower the profitability ratios. The more rapid write-off of fixed assets will cause lower total asset values. Thus, the debt to asset ratio should be higher. The debt to equity ratio and both liquidity ratios should be unaffected.f.LIFO is used in the United States. It is permitted in Japan, but not widely used.Companies using LIFO should have lower income, so lower profitability ratios.Inventory will probably be lower, causing the debt to asset ratio to increase and the current ratio to decrease. Cash flow to current liabilities will be unaffected. With less income going to retained earnings, the debt to equity ratio will be higher.g.Probable losses are accrued in all five countries, so there is no effect on comparativeratios.h.Not all finance leases are capitalized in Japan. Companies will report comparativelylower noncurrent liabilities and noncurrent assets. Income will also be affected, but the amount is probably immaterial. The liquidity ratios should be unaffected. Both solvency ratios should be lower and return on assets will be higher. The effect on return on equity is probably immaterial.i.Deferred taxes are accrued in all five countries, so there is no effect on comparative ratios. j.Some opportunity for income smoothing exists in India. Income smoothing has an indeterminate effect on income in any given year. Therefore it is not possible to know how the profitability ratios are affected. The effect of creating reserves is to shift amounts that would otherwise be in retained earnings into the reserve accounts. Since both of these are in shareholders’ equity, this total is unaffected. Therefore, the solvency ratios are likely to be unaffected. The two liquidity ratios will be unaffected.。
国际会计 第1-3章习题
第1章国际会计的形成与发展1、你倾向于把国际会计定义为全球会计，还是国别会计？基本上肯定：（1）全球会计应该是最终目标；（2）国际财务报告趋同化已是国际货币市场和资本市场发展的现实需求；（3）会计的国别差异可能是难以完全磨灭的，但“求大同，存小异”则是必然的发展趋势；（4）为此，应该变以静态的观点研究国别会计为以动态的观点研究国别会计。
2、你赞成把国际会计等同于跨国公司与国外子公司之间的会计实务吗？不能完全等同。
虽然国际会计研究的课题几乎都与跨国公司经营活动的要求有关，但即使是跨国公司要求的国别会计的研究也发展成为世界会计模式的研究，而且带有宏观会计的性质，远远突破了跨国公司与国外子公司之间的会计实务研究的范畴。
此外，这种实务主义的观点也有损国际会计领域的理论研究。
3、通过调研，初步了解“四大”和其他国际会计师事务所进入我国会计市场的情况，以及我国较大型的国内会计师事务所应对“入世”后我国会计市场进一步对外开放的策略。
在过去十余年间，国际“五大”（安达信解体后为“四大”）和柏德豪、均富、浩华等第二层次的国际性会计师事务所已先后进入我国会计市场，或联合我国会计师事务所成立中外合作所，或发展国内事务所为其成员所，或开设办事处，经营国内公司在国际证券市场上市和B股在国内证券市场上市的审计业务。
合作所还能同时执行国内较大型事务所（具有从事证券业务资格的）从事的A股在国内证券市场上市的审计业务，且具有竞争优势。
我国加入WTO后，面临着全面开放A股审计业务的可能，这将构成国内大型事务所在业务竞争上的更大压力。
我国事务所必须全面提高执业能力和水平。
同时，证券监管部门应该同等地加强对国际性事务所的我国境内机构和我国的国内事务所的监督、管理和检查力度，开创和巩固会计市场上的公平、公开竞争的格局。
4、通过对国内出版的有关国际会计教材的浏览，比较它们的内容和各自的特点。
选择几本国内学者编著的教材或是国外学者编著的英语教材的汉语译本（或影印本），浏览其目录，即可发现：（1）有些教材偏重于国际会计诸问题的讲述，而且还包括财务会计和管理会计方面的内容，其中更多的内容属于财务会计；属于管理会计方面的内容的篇幅，在近年出版的教材中有增多的趋势；此外，也有的教材设专章讲述国际审计。
国际会计课后答案 重点
第一章导论2.会计可以被看做是包括三个部分：计量、披露和审计。
这种分类的优点和缺点是什么？你能提出其他有效的分类吗？Advantage: Some might argue that measurement, disclosure, and external auditing are three distinct (although related) processes, involving different members of the company. For example, corporate attorneys often are involved in disclosure issues, but seldom intervene in measurement ssues. The Board of Directors works with the external auditors but not necessarily with the comptroller s office. Thus, discussion of accounting requirements 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 accounting measurement approaches that reduce the information content of financial statements, and select an external auditor who will be relatively lenient in enforcing accounting requirements. 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.优势：一些人可能认为测量，披露和外部审计是三个不同的（虽然相关）流程，涉及公司的不同成员。
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。
精编新版2020国际会计考试题库258题(含答案)
2020年国际会计考试题库258题[含参考答案]一、填空题1．衍生金融工具是从基本金融工具中派生出来的创新的金融工具，也称为。
【参考答案：金融衍生工具】2．的会计实务体系被公认为当今在世界范围内影响最大的会计模式。
【参考答案：美国】3．经济.政治.社会.法律.地理等因素，可统称为社会经济环境因素，最后一项是因素。
【参考答案：文化】4．《编报财务报表的框架》特别提及的会计基本假设包括 .。
【参考答案：权责发生制 ;持续经营】5．采用账户式资产负债表的大多数英联邦国家的企业，把资产列在，负债和业主权益列在。
【参考答案：右方 ;左方】6．国际会计准则委员会的总部设在，是民间机构。
【参考答案：英国伦敦】7．与资产负债表中财务状况的计量直接联系的要素是： ..。
【参考答案：资产 ;负债 ;权益】8．经济.政治.社会.法律.地理等因素，可统称为社会经济环境因素，最后一项是因素。
【参考答案：文化】9．《编报财务报表的框架》特别提及的会计基本假设包括 .。
【参考答案：权责发生制 ;持续经营】10．市场是商品经济的产物（第1章知识点1会计的国际传承）A.正确B.错误【参考答案：A】11．IASB是的简称。
【参考答案：国际会计准则理事会】12．不但要求确认递延所得税资产，而且要求确认在一定条件下确认以后结转亏损的所得税资产。
A.美国B.挪威C.加拿大D.巴西【参考答案：A】13．国际会计准则委员会的总部设在，是民间机构。
【参考答案：英国伦敦】14．除外，不要求对外公布财务报告，会计报表中对信息的披露要求不够充分。
【参考答案：上市公司】15．对社会责任披露的另一争论是：对企业有关社会责任的投入和产出应该侧重定量反映还是。
【参考答案：定性披露】16．经济合作与发展组织的宗旨是“以协调一致的准则，在世界范围内发展和加强会计职业，以便为公众利益提供一贯的高质量服务”。
A.正确B.错误【参考答案：B】17．居住国应征所得税税额=全球总收益*居住国适用税率-已在国外缴纳的所得税。
国际财务管理课后习题答案chapter3
国际财务管理课后习题答案chapter3***** 3 ***** OF *****S*****ED ***** AND *****NS TO END-OF-**********NS AND *****S*****NS1. Define the balance of payments.Answer: The balance of payments (BOP) can be defined as the statistical record of a country?s international transactions over a certain period of time presented in the form of double-entry bookkeeping.2. Why would it be useful to examine a country?s balance of payments data?Answer: It would be useful to examine a country?s BOP for at least two reasons. First, BOP provides detailed information about the supply and demand of the country?s currency. Second, BOP data can be used to evaluate the performance of the country in international economic competition. For example, if a country is experiencing perennial BOP deficits, it may signal that the country?s industries lack competitiveness.3. The United States has experienced continuous current account deficits since the early 1980s. What do you think are the main causes for the deficits? What would be the consequences of continuous U.S. current account deficits?Answer: The current account deficits of U.S. may have reflected a few reasons such as (I) a historically high real interest rate in the U.S., which is due to ballooning federal budget deficits, that kept the dollar strong, and (ii) weak competitiveness of the U.S. industries.4. In contrast to the U.S., Japan has realized continuous current account surpluses. What could be the main causes for these surpluses? Is it desirable to have continuous current account surpluses?Answer: Japan?s continuous current account surpluses may have reflected a weak yen and high competitiveness of Japanese industries. Massive capital exports by Japan prevented yen from appreciating more than it did. At the same time, foreigners? exports to Japan were hampered by closed nature of Japanese markets. Continuous current account surpluses disrupt free trade by promoting protectionist IM-1sentiment in the deficit country. It is not desirable especially when it is brought about by the mercantilist policies.5. Comment on the following statement: “Since the U.S. imports more than it exports, it is necessary for the U.S. to import capital from foreign countries to finance its current account deficits.”Answer: The statement presupposes that the U.S. current account deficit causes its capital account surplus. In reality, the causality may be running in the opposite direction: U.S. capital account surplus may cause the country?s current account deficit. Suppose foreigners find the U.S. a great place to invest and send their capital to the U.S., resulting in U.S. capital account surplus. This capital inflow will strengthen the dollar, hurting the U.S. export and encouraging imports from foreign countries, causing current account deficits.6. Explain how a country can run an overall balance of payments deficit or surplus.Answer: A country can run an overall BOP deficit or surplus by engaging in the official reserve transactions. For example, an overall BOP deficit can be supported by drawing down the central bank?s reserve holdings. Likewise, an overall BOP surplus can be absorbed byadding to the central bank?s reserve holdings.7. Explain official reserve assets and its major components.Answer: Official reserve assets are those financial assets that can be used as international means of payments. Currently, official reserve assets comprise: (I) gold, (ii) foreign exchanges, (iii) special drawing rights (SDRs), and (iv) reserve positions with the IMF. Foreign exchanges are by far the most important official reserves.8. Explain how to compute the overall balance and discuss its significance.Answer: The overall BOP is determined by computing the cumulative balance of payments including the current account, capital account, and the statistical discrepancies. The overall BOP is significant because it indicates a country?s international payment gap that must be financed by the government?s official reserve transactions.IM-29. Since the early 1980s, foreign portfolio investors have purchased a significant portion of U.S. treasury bond issues. Discuss the short-term and long-term effects of foreigners? portfolio investment on the U.S. balance of payments.Answer: As foreigners purchase U.S. Treasury bonds, U.S. BOP will improve in the short run. But in the long run, U.S. BOP may deteriorate because the U.S. should pay interests and principals to foreigners. If foreign funds are used productively and contributes to the competitiveness of U.S. industries, however, U.S. BOP may improve in the long run.10. Describe the balance of payments identity and discuss its implications under the fixed and flexible exchange rate regimes.Answer: The balance of payments identity holds that the combined balance on the current and capital accounts should beequal in size, but opposite in sign, to the change in the official reserves: BCA + BKA = -BRA. Under the pure flexible exchange rate regime, central banks do not engage in official reserve transactions. Thus, the overall balance must balance, i.e., BCA = -BKA. Under the fixed exchange rate regime, however, a country can have an overall BOP surplus or deficit as the central bank will accommodate it via official reserve transactions.11. Exhibit 3.3 indicates that in 1991, the U.S. had a current account deficit and at the same time a capital account deficit. Explain how this can happen?Answer: In 1991, the U.S. experienced an overall BOP deficit, which must have been accommodated by the Federal Reserve?s official reserve action, i.e., drawing down its reserve holdings.12. Explain how each of the following transactions will be classified and recorded in the debit and credit of the U.S. balance of payments:(1) A Japanese insurance company purchases U.S. Treasury bonds and pays out of its bank account kept in New York City.(2) A U.S. citizen consumes a meal at a restaurant in Paris and pays with her American Express card. (3) A Indian immigrant living in Los Angeles sends a check drawn on his L.A. bank account as a gift to his parents living in Bombay.IM-3(4) A U.S. computer programmer is hired by a British company for consulting and gets paid from the U.S. bank account maintained by the British company. Answer:_________________________________________________________________ TransactionsJapanese purchase of U.S. T bonds? ? ? ???? ?Credit Debit_________________________________________________________________ Japanese payment using NYC accountU.S. citizen having a meal in Paris Paying the meal with American ExpressGift to parents in Bombay Receipts of the check by parents (goodwill)Export of programming serviceBritish payment out its account in U.S._________________________________________________________________13. Construct the balance of payment table for Japan for the year of 1998 which is comparable in format to Exhibit 3.1, and interpret the numerical data. You may consult International Financial Statistics published by IMF or research for useful websites for the data yourself.IM-4Answer:A summary of the Japanese Balance of Payments for 1998 (in $ billion)Current Account (1) Exports(2) Imports(3) Unilateral transferCapital Account (4) Direct investment (5) Portfolio investmentBalance on financial account [(4) + (5) + (6)]Overall balance (5.1) Equity securities (5.2) Debt securities Balance on current account [(1) + (2) + (3)] (2.1) Merchandise (2.2) Services(3.3) Factor income (1.1) Merchandise (1.2) Services (1.3) Factor incomeCredits646.03 374.04 62.41 209.585.53 120.693.27 73.70 16.11 57.59 39.514.36 6.17Debits-516.50 -251.66 -111.83 -153.01-14.37 -24.62 -113.73 -14.00 -99.73 -109.35-131.22-6.17(6) Other investment(7) Statistical discrepancies Official Reserve AccountSource: IMF, International Financial Statistics Yearbook, 1999.Note: Capital account in the above table corresponds with the ?Financial account? in IMF?s balance of payment statistics. IMF?s Capital account? is included in ?Other investment? in the above table.IM-5。
国际会计答案
国际会计答案第一章国际会计的形式与发展第一题选择题1、国际会计的三大课题是（ABC ）A 国际物价变动影响的调整B 国际财务报表的合并C 外币报表的折算D 国际税务会计2、现有的国际性会计事务所（会计公司）中所谓的“四大”包括（ABCD ）A普华永道B毕马威国际C德勤D永安国际E安达信国际3、跨国公司兴起导致的独特的会计问题是（B ）A 国际物价变动影响的调整B 国际财务报表的合并C 外币报表的折算D 国际税务会计4、“四大”会计师事务所的业务扩展与委托人的联系使用的是（A ）A 同一名称和同一语言B 不同名称和同一语言C 不同名称和不同语言D 同一名称和不同语言5、国内性质的会计师事务所为从事国际业务而进行的临时协作一般要通过哪些途径联系？（ABC ）A 国际性的职业届会议B 双方直接联系C 各国的执业会计师协会下设的国际联络委员会D 各国政府6、我国注册会计师考试的报考者的条件包括（AB ）A 具有大专或大专以上学历B 具有会计、审计、统计、经济中级或中级以上的专业技术职称C 有两年的会计师事务所工作经验D 必须是中国公民7、自1994年，我国已允许（ABCD ）参加我国注册会计师统一考试。
A 我国大陆公民B 香港居民C 澳门居民3D 台湾居民E 外国籍公民（该国法律允许中国公民参加该国注册会计师考试）8、第一次国际会计师大会举行的时间、地点是（A ）A 1904年圣路易斯B 1952年伦敦C 1962年纽约D 1972年悉尼9、1977年于慕尼黑举行的第十一次国际会计师大会上创建的国际会计师联合会（IFAC）的前身是（A ）A 会计职业界国际协调委员会（ICCAP）B 国际会计准则委员会(IASC)C 国际审计事务委员会(IAPC)D 国际会计师大会技术委员会10、20世纪70年代国际会计的研究中，悲观主义者的“国别会计”观的主要观点包括（ABC ）A 各国会计的差异是各国不同的经济、政治、社会、法律、文化等环境影响所形成，不大可能协调一致。
国际会计课后题答案 版
第1章国际会计的形成与发展一、讨论题为什么说市场国际化，特别是货币市场和资本市场的国际化是会计国际化的主要推动力国际贸易和国际经济技术合作，促使会计成为一种国际商业语言。
特别是国际货币市场和资本市场的兴起向进入市场的贷款人或筹资者提出了应提供在国际间可比且可靠的财务信息的要求（即国际财务报告趋同化的要求），更成为会计国际化的主要推动力。
跨国公司是否在百分之百地推动会计国际化说明你的观点。
不是。
跨国公司对推动会计国际化有其两面性：一方面，基于其跨国经营和国际筹资的需要，他们希望通过会计国际化来缩小和协调国别差异；另一方面，他们又十分重视利用各国现存的会计差异来谋取财务利益。
后者也推动了各国会计模式和重要会计方法的国际比较研究。
（注意：“会计国际化”大体上与“会计的国际协调化”概念一致，而与国际会计研究中的“国别会计”观点对立）会计随商业活动的扩展而传播，你同意这种说法吗从历史发展的进程谈谈你的看法。
同意。
可主要就前殖民帝国的会计向其原殖民地传播、工业革命后西方会计的发展及在世界范围内的广泛传播以及第二次世界大战以后美国会计的影响在一定程度上主宰着世界各地的会计发展等历史事实，加以讨论。
哪些特定会计方法具有国际性质把外币交易和外币报表的折算引入会计领域，是会计国际化带来的独特问题。
它与由此引发的跨国企业合并和国际合并财务报表与外币折算相互关联和制约的问题，以及各国的物价变动影响在国际合并财务报表中如何处理和调整的问题，从20世纪70年代以来，就成为国际会计研究中既需协调一致但又矛盾重重的“三大难题”。
在世纪之交，金融工具（特别是衍生工具）的创新引发的会计处理问题，给传统的会计概念和实务带来了巨大的冲击，成为各国会计准则机构联合攻关、仍未妥善解决的难题。
此外，国际税务会计也是值得关注的课题。
你对会计国际化和国家化之间的矛盾及其消长有何看法会计国际化和国家化的矛盾实际上反映了经济全球化与各国的国家利益之间的矛盾及其消长过程。
第七版答案(翻译-英译中结果)
内容第1章介绍 (1)第二章会计..........................................................在理想的条件7第三章财务报告的决策有用法 (68)第四章......................................................................有效的证券市场129第五章会计信息的价值相关性 (153)第六章决策有用性................................测量方法194第七章........................................................................测量应用237第8章有效的决策有用的契约方法 (285)第九章的分析冲突 (321)第十章高管薪酬 (371)第十一章盈余管理 (425)第十二章标准设置:经济问题 (487)第十三章标准设置:政治问题 (527)版权©2015年皮尔森加拿大公司。
第一章介绍1.1 这本书的目的1.2 一些历史的角度来看1.3 2007-2008年的市场崩盘1.4 有效的合同1.5 关于道德行为的说明1.6 基于规则的与基于原则的会计准则1.7 财务会计和报告信息的复杂性1.8 会计研究的作用1.9 信息不对称的重要性1.10财务会计理论的基本问题1.11监管作为对根本问题的反应1.12本书的组织结构1.12.1理想条件1.12.2逆向选择1.12.3道德风险1.12.4标准设定1.12.5标准设定过程1.13财务会计理论与会计实务的相关性学习目标及建议教学方法1. 这本书的概要我使用图1.1作为模板来描述这本书的大致轮廓。
由于学生们通常没有机会在第一节课上阅读第一章，所以我非常关注这一章的内容。
我讨论的要点是:•理想的会计环境。
在这里，基于现值的会计是很自然的。
我讨论了这种会计基础可行所需的理想条件，但没有详细讨论，因为这个主题在第2章有更深入的讨论。
新版精编2020国际会计完整考试题库258题(含标准答案)
2020年国际会计考试题库258题[含参考答案]一、填空题1．除外，不要求对外公布财务报告，会计报表中对信息的披露要求不够充分。
【参考答案：上市公司】2．根据协议，1973年成立的国际会计准则委员会作为国际会计师联合会的团体成员，独立制定和发布国际会计准则和审计准则。
（知识点5 国际会计协调化和趋同化的国际组）A.正确B.错误【参考答案：B】3．除了中国注册会计师协会需对政府部门进行报告以外，中国注册会计师的管理与的制度是相似的。
A.美国B.英国C.德国D.日本【参考答案：A】4．经济.政治.社会.法律.地理等因素，可统称为社会经济环境因素，最后一项是因素。
【参考答案：文化】5．指在机构和组织中，等级制度和权力的不公平分配能被接受的程度。
【参考答案：权利距离】6．衍生金融工具是从基本金融工具中派生出来的创新的金融工具，也称为。
【参考答案：金融衍生工具】7．与资产负债表中财务状况的计量直接联系的要素是： ..。
【参考答案：资产 ;负债 ;权益】8．国际会计准则委员会的总部设在，是民间机构。
【参考答案：英国伦敦】9．除外，不要求对外公布财务报告，会计报表中对信息的披露要求不够充分。
【参考答案：上市公司】10．荷兰《年度报表法》和《所得税法》的会计要求并不完全一致。
报告收益与应税收益之间的暂时性差异，要通过所得税的程序调节。
【参考答案：跨期摊配】11．IASB是的简称。
【参考答案：国际会计准则理事会】12．除了中国注册会计师协会需对政府部门进行报告以外，中国注册会计师的管理与的制度是相似的。
（）A.美国B.英国C.德国D.日本【参考答案：A】13．国际会计准则委员会的总部设在，是民间机构。
【参考答案：英国伦敦】14．经济合作与发展组织在会计的国际协调化方面发布的重要文件有（）A.《跨国公司行为规范中的会计披露要求》B.《关于在跨国公司投资的指南》C.《外国发行者证券跨国上市的首次挂牌交易的国际披露准则概要》D.《国际会计准则和欧洲会计指令间一致性的考察》【参考答案：B】15．对社会责任披露的另一争论是：对企业有关社会责任的投入和产出应该侧重定量反映还是。
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。
国际会计第七版课后答案第四章作者弗雷德里克
第四章比较会计:美洲和亚洲讨论问题1。
公共和私营部门机构参与调节和执行财务报告在美国。
财务会计准则委员会是一个私人的身体决定美国公认会计原则。
美国证券交易委员会有权决定美国公认会计准则对上市公司来说,但FASB推迟。
FASB和秒有一个密切的工作关系,确保FASB SEC标准是可以接受的。
美国证券交易委员会对上市公司实施财务报告规则。
公司积极审查申请。
审计师的执法者非公有制企业举行。
发布的会计准则在墨西哥是财务信息标准的研究和发展委员会(CINIF),一个独立的美国FASB公私部门的身体后图案。
墨西哥的权威发布会计准则是国家银行和证券委员会认可的政府机构,调节墨西哥证券交易所。
欧盟委员会负责执行上市公司财务报告准则。
然而,目前尚不清楚如何主动的委员会在调查其接收到的文件。
执行财务报告为非上市公司有效取决于审计师。
日本会计准则由私营部门机构设置,日本的会计准则委员会。
ASBJ的建立是最近在日本发展。
以前,会计准则制定是政府活动。
财务报告的执行有效取决于审计师。
证券交易所监管的金融服务机构,政府机构。
然而,目前尚不清楚如何主动FSA在监测由日本公司财务报告。
在中国会计准则制定是政府的活动。
中国会计准则委员会权威机构在财政部负责制定会计准则。
中国证券监督管理委员会是中国的政府机构监管的两个股票交易所。
中国证监会还负责执行上市公司财务报告。
许多中国执行机制的有效性问题。
印度特许会计师协会,一个私营部门的专业机构,在印度发展会计准则。
印度证券交易委员会财政部的一个机构,调节印度22证券交易所和负责执行财务报告规则。
然而,目前尚不清楚如何主动的董事会是由印度公司在监督财务报告。
总的来说,五个国家不同的私人和公共部门负责管理和执行财务报告。
在若干国家执法是可疑的。
美国最强大的机制来调节和执行五个国家的财务报告。
2。
美国和印度是普通法国家,面向公允表达的财务报告。
墨西哥也有面向公允表达的财务报告,因为美国的影响力。
国际会计作业3答案
《国际会计》作业3参考答案一、简答题1．答在母公司理论下，合并股东权益是关于母公司股东的权益，由母公司自身的股东权益和母公司在子公司股东权益中的份额两部分组成。
在合并资产负债表上，子公司股东权益的少数股权部分即少数股权应以单独项目反映在合并负债之中。
合并损益表是关于母公司净损益形成情况的报表，由于母公司净损益包括母公司自身形成的净损益与子公司净损益中属于母公司的份额，因而子公司净损益中属于少数股东的部分，应以单独项目“少数股东损益”列示在合并费用中。
合并留存收益表是关于母公司净收益分配情况的报表。
在编制股权取得日的合并资产负债表时，应对于公司净资产中的母公司部分按公允价值计量，而对属于少数股东的部分仍按原账面价值计价，即合并商誉只归属于母公司股东。
在母公司理论下，集团内发生的未实现损益也只抵销属于母公司的部分。
实体理论认为，合并会计报表应主要为集团所有股东的利益服务；在集团内无论是母公司股东还是子公司的少数股东，都是集团的股东，应平等地对待它们。
因而，应以单独项目“少数股权”反映在合并资产负债表的合并股东权益中；同样，在合并损益表中，也应以单独项目将“少数股东损益”反映在合并净收益中；合并留存收益表就是关于集团全体股东净收益分配情况的报表。
在实体理论下，若母公司以其现金等资产、债券甚至普通股购买子公司的控股权时，应按购买日的公允价值来计量子公司当时的全部净资产，从而合并商誉应归属集团的全体股东。
在实体理论下，集团内发生的未实现损益应予全部抵销。
2．答购买法是以母公司购买子公司为假设而编制合并会计报表的一种方法。
它将母公司取得对子公司的控制权视同母公司购买子公司的净资产，因而要求和购买其他资产一样，子公司的净资产应在合并资产负债表上按购买日(控制权取得日)的购买成本即公允市价计价。
具体来说，这种方法的要点是：在合并资产负债表上，子公司的净资产按控制权取得日的公允市价反映；母公司本身的净资产按账面价值反映。
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Chapter 3Comparative Accounting: EuropeDiscussion Questions1.Regulating and enforcing financial reporting is a government function in France. TheNational Accounting Board (CNC) and the Accounting Regulation committee (CRC) setaccounting standards under the jurisdiction of the Ministry of Economy and Finance. TheFinancial Markets Authority (AMF) ensures compliance with French accounting rules (forlisted companies). It is also a government agency.Public and private sector bodies are involved in the regulation and enforcement of financial reporting in Germany. The German Accounting Standards Board is a private sector body that develops German reporting standards for consolidated financial statements. However, German law (the HGB) governs financial statements at the individual company level. Enforcement also involves private and public sector bodies. The Financial Reporting Enforcement Panel is a private sector body that investigates compliance and relies on companies to voluntarily correct any problems that it finds. Matters that cannot be resolved are referred to the Federal Financial Supervisory Authority, a government agency, for final resolution.The regulation and enforcement of financial reporting is in the public sector in the Czech Republic. The Ministry of Finance is responsible for setting accounting principles and it also oversees the Czech Securities Commission which is responsible for enforcing compliance with Czech requirements. Some observers question the effectiveness of the Czech system.A private sector group is responsible for regulating financial reporting in the Netherlands. TheDutch Accounting Standards Board issues guidelines on acceptable accounting principles.Enforcement is handled by the Enterprise Chamber, a special accounting court. It rules on whether companies have used acceptable accounting practices, but only after an interested party has brought a complaint. The Financial Reporting Supervision Division of the Netherlands Authority for Financial Markets is responsible for enforcing reporting requirements for listed companies.Regulation of financial reporting is in the private sector in the United Kingdom. The Accounting Standards Board determines Financial Reporting Standards. The authority of the ASB is set out in the law. Two groups are responsible for enforcing financial reporting standards, one in the private sector and the other in the public sector. The Financial Reporting Review Panel (private sector) and the Department of Trade and Industry (public sector) can investigate complaints about departures from accounting standards. If necessary, they can go to court to force companies to revise its financial statements.2.Given the requirement that all EU listed companies must use International FinancialReporting Standards in their consolidated financial statements, all five countries follow fairpresentation principles for this group of companies’ financial statements. The differenceamong the countries comes with listed companies’ individu al financial statements and withnon-listed companies. The overall picture is quite confusing.At the individual company level, France and Germany require local accounting standards. Both can be characterized as legal compliance, conservative, and tax-driven. Individual companyfinancial statements in the Netherlands and United Kingdom may use either local requirements or IFRS. However, in either case the result is fair presentation financial statements. The Czech Republic requires IFRS in listed c ompanies’ individual company financial statements, so the result is that they are fair presentation. In all five countries, non-listed companies may use either IFRS or local accounting standards for their consolidated financial statements. As characterized above, the resulting financial statements will be quite different for German and French companies. Czech accounting standards are mostly fair presentation, but there is still some tax influence. Thus, the resulting financial statements can also be different depending on the choice that companies make. Finally, non-listed companies’ individual financial statements must be prepared under local accounting standards in the Czech Republic, France, and Germany. Local accounting standards or IFRS may be used by this group of companies in the Netherlands and United Kingdom.3.The recently established auditor oversight bodies discussed in this chapter are:a.France –Haut Conseil du Commissariat aux Comptes (High Council of ExternalAuditors)herlands – Netherlands Authority for Financial Marketsc.United Kingdom – Professional Oversight BoardThe oversight body in France is in a government agency, while the one in the U.K. is a private sector body. The Dutch body is an autonomous administrative authority under the Ministry of Finance. They are a response to recent accounting scandals and represent efforts to the tighten control over auditors.4. Tax legislation is a significant influence on local accounting requirements in France andGermany. It is unimportant in the Netherlands and United Kingdom. Tax legislation has limited influence in the Czech Republic. Given that Czech accounting is still evolving, tax law can be expected to fill in areas where accounting standards are missing.5. Consolidated financial statements are the statements of a group of companies under commonmanagement or control. Individual company financial statements are the statements of the separate legal entities (parent and subsidiaries) that make up the group. EU countries prohibit IFRS for individual company financial statements when these statements are the basis for taxation and dividend distributions. They are “legal compliance” countries (see Chapter 2) and individual company financial statements must comply with the law. Other countries permit or require IFRS for individual company financial statements because they are “fair presentation”countries (Chapter 2). Individual company financial statements are not the basis for taxation or dividends. Local accounting standards follow fair presentation principles.6. There is no conclusive evidence linking high levels of legal accounting and reportingrequirements in a country and corresponding high quality levels of financial reporting. It appears that high legal requirements (for example, in France and Germany) lead to a certain amount of professional or bureaucratic inertia and form over substance thinking in financial reporting. Indeed, countries with significant state regulation of accounting and accountants are generally not among the innovative accounting leadership countries. If anything, comparatively high levels of legal requirements appear to depress the overall quality of reporting.7.This quote paraphrases a statement in the preamble to the charter establishing the GermanAccounting Standards Committee. We agree. Private sector initiatives (self-regulation) havebeen more successful than governmental initiatives in developing financial reporting regulations for national and international capital markets.Two noteworthy examples are the Accounting Standards Board in the U.K. (discussed in Chapter 3) and the Financial Accounting Standards Board in the U.S. (discussed in Chapter 4).Both have been flexible and adaptable in developing reporting standards in response to new circumstances. They are arguably the premier national standard setting bodies in the world. It is also noteworthy that Germany and Japan (Chapter 4) have recently moved to establish private sector organizations.Chapter 8 discusses international harmonization and convergence. There, the work of the International Accounting Standards Board and the European Union are discussed. The EU was not effective in establishing standards for capital markets and has now endorsed the efforts of the IASB.8. Existing French companies’ legislation in the form of the Plan Comptable Général and Code deCommerce have the greatest influence on day-to-day French accounting practices. The two other authoritative sources of financial accounting standards and practices have comparatively modest or sporadic influence.9. The statement is true. The German Accounting Standards Board is a private-sector body likethe FASB (U.S.), ASB (U.K.), and IASB. The process for establishing standards is also similar.Working groups examine issues and make recommendations to the Board. These groups represent a broad constituency. GASB deliberations follow a due process and meetings are open.10.Accounting requirements in the Czech Republic are based on EU Directives. Examples noted inthe chapter are the following:a.True and fair view embodied in the Accountancy Act.b.Required audit.c.Statement of cash flows not a required financial statement (though it is required in thenotes).d.Disclosures of employee information and revenues by segment.e.Consolidated financial statements required.f.Abbreviated reporting requirements for small companies.g.Notes include accounting policies.h.Listed companies use IFRS in consolidated financial statements.The accounting measurements discussed are also consistent with EU Directives, for example, the requirement for the equity method.11.The Dutch Enterprise Chamber of the Court of Justice of Amsterdam helps ensure that filed orpublished Dutch financial statements conform to all applicable laws. Shareholders, employees, trade unions, or public prosecutors may bring proceedings to the Chamber by alleging that officially filed or published financial statements do not conform to applicable requirements.The Enterprise Chamber carries out its mission by determining whether the allegations of deficient financial reporting are true and how material such deficiencies are. Depending uponthe case, the Chamber may require that financial statements be modified or it may seekpenalties through the Court of Justice.The Chamber is composed of three judges and two Dutch RAs. There is no jury. Appeals of anyof the Chambers rulings are difficult, may only be lodged with the Dutch Supreme Court, andare restricted to points of law.12.Britis h financial statements must present a “true and fair view” of a company’s financial positionand results of operations. The intent is similar to the U.S. “presents fairly.” However, the “presents fairly” test in the United States is whether financial sta tements conform to U.S. GAAP.The “true and fair” test in the United Kingdom requires auditors to step back and see whether the financial statements –taken as a whole –result in a fair presentation. U.K. GAAP may be overridden if complying with them wo uld result in an “unfair” presentation. In other words, judgment is exercised in determining whether the financial statements are true and fair. Exercises1. Francea.The Conseil National de la Comptabilité, or CNC (National Accounting Board) throughthe latest Plan Comptable Général and the Comité de la Réglementation Comptable, orCRC (Accounting Regulation Committee). The CNC and CRC are attached to theMinistry of Economy and Finance.b.The Autoritédes Marches Financiers (AMF) for French listed firms. The Division ofCorporate Finance (SOIF) conducts a general review of legal and other filings with theAMF. The Accounting Division (SACF) verifies compliance with accounting standards.The Ministry of Justice is indirectly responsible for compliance with reportingrequirements by non-listed companies through its role in supervising statutory auditors.Germanya.The German Accounting Standards Board for consolidated financial statements.Parliamentary legislation for individual company financial statements.b.The Financial Reporting Enforcement Panel (FREP). Matters that FREP cannot resolveare referred to Federal Financial Supervisory Authority (BaFin).Czech Republica.The Ministry of Finance.b.The Ministry of Finance also has supervisory responsibilities. Audits are regulated by theAct on Auditors which established Chamber of Auditors to oversee the auditingprofession.The Netherlandsa.Dutch Accounting Standards Board.b.Dutch Enterprise Chamber of the Court of Justice in Amsterdam. Financial ReportingSupervision Division of the Netherlands Authority for Financial Markets for listed firms.United Kingdoma.Accounting Standards Board.b.Both the Department of Trade and Industry and the Financial Reporting Review Panel ofthe Financial Reporting Council can investigate complaints about departures fromaccounting standards and they can go to court if necessary to force compliance.2. Good arguments can be made that France and Germany have the most effective accounting andfinancial reporting supervision mechanism for publicly traded companies. In France, the Autoritédes Marches Financiers (AMF) is a government agency that supervises the stock market. It is the French equivalent of the U.S. Securities and Exchange Commission (SEC). Two divisions within the AMF enforce compliance with reporting rules. The Division of Corporate Finance (SOIF) conducts a general review of legal and other filings with the AMF (including the annual report).The Accounting Division (SACF) verifies compliance with accounting standards. The AMF has the power to force compliance with accounting requirements. Germany has a two-tiered system.A private sector body, the Financial Reporting Enforcement Panel (FREP) reviews suspectedirregular financial statements that come to its attention. It also conducts random review of financial statements. If companies do not voluntarily change their financial statements, FREP refers the matter to the Federal Financial Supervisory Authority (BaFin), a government agency that regulates the stock exchanges (and banking and insurance industries). In both countries, the agencies responsible for compliance are proactive. The responsibility in the Czech Republic is the Ministry of Finance, but there are many questions about its effectiveness. The responsibility in the Netherlands rests with the Enterprise Chamber. However, it isn’t proactive – cases must be brought to it first. The Financial Reporting Supervision Division of the Netherlands Authority for Financial Markets is new (2006) but it can be expected to be effective. In the United Kingdom, the Financial Reporting Review Panel and the Department of Trade and Industry investigate complaints about financial reporting practices. It isn’t clear how proactive either o ne is in enforcing reporting standards for publicly traded companies. The United Kingdom does not have the equivalent of the U.S. SEC. In our view the most effective way to enforce accounting and financial reporting rules for publicly traded companies is a through government agency that is proactive in insuring compliance.3. At the time of writing, the following accounting organizations discussed in this chapter werelinked to IFAC s website:FranceCompagnie Nationale des Commissaires aux ComptesConseil Supérieur de l’Ordre des Experts-ComptablesGermanyInstitut der Wirtschaftsprüfer in Deutschland e.v.WirtschaftsprüferkammerCzech RepublicChamber of Auditors of the Czech RepublicUnion of Accountants of the Czech RepublicThe NetherlandsKoninklijk Nederlands Instituut van Registeraccountants (Royal NIvRA)United KingdomChartered Institute of Management AccountantsInstitute of Chartered Accountants in England and WalesChartered Institute of Public Finance and AccountancyThe Association of Chartered Certified AccountantsInstitute of Chartered Accountants of Scotland4.The question asked for five expressions, terms, or short phrases unfamiliar or unusual in thestudent’s home country. Taking the United States as the home country, here are eighteen:a.Duality in individual company and consolidated statements — The idea that the two setsof financial statements may be based on different GAAP, as in France in Germany.b.Social report —Required in France for companies with 300 or more employees itdescribes, analyzes, and reports on matters of training, industrial relations, health andsafety conditions, wage levels, benefits, and other work conditions.panies Act — National law regulating, among other things, financial reporting anddisclosures by companies.d.True and fair override — The idea in the U.K. that professional judgment can override astandard if necessary to give a true and fair view.e.Provisions and reserves — Used to smooth income and often based on tax laws, such asin Germany.f.National chart of accounts — A formal chart of accounts designed for an entire economyand typically used for strong central economic control.g.Secret reserves —Undisclosed and deliberate understatements of assets oroverstatements of liabilities.h.Plan Comptable Général — French uniform national chart of accounts.i.Sworn book examiners — A class of statutory auditors legally sanctioned in Germany toconduct independent audit examinations of companies.j.Statutory auditors —Auditors who are required by law (statute) to audit a company’s financial statements.k.Enterprise Chamber of the Court of Justice of Amsterdam —A judicial institution receiving formal complaints of nonconformance with established Dutch accounting andreporting standards.l.Generally acceptable accounting principles — Accounting guidelines issued by the Dutch Accounting Standards Board in the Netherlands.m.Proportional consolidation —Consolidation technique often used for joint ventures where all assets and liabilities are prorated to the owners in strict proportion to theirrespective ownership interest percentages.n.Legal reserves — Appropriations of retained earnings required by law in most code law countries.o.Determination principle — German requirement for book/tax conformity.p.Parent company only statements —Unconsolidated financial statements of a company controlling other (subsidiary) companies.q.Coupon voucher privatization system - the method used by the Czech Republic to privatize large-scale, government-owned enterprises. Vouchers allowed CR citizens tobuy shares for a nominal price.r.Joint stock companies and limited liability companies - the terms used in the CR for corporations and limited liability partnerships, respectively. Joint stock companies issueshares while limited liability companies do not.5.For each country discussed in the chapter, there are several financial accounting practices orprinciples at variance with international norms. The items below are illustrative only.a.France –Liabilities for post-employment benefits do not have to be recognized andfinance leases do not have to be capitalized. Both accounting treatments are examples ofform over substance and violate fair presentation. The treatment of post-employmentbenefits will understate reported earnings and understate reported liabilities. The debt toasset ratio will be understated. It is unlikely that an analyst will be able to adjust for thisvariance. The treatment of leases understates assets and liabilities, and understates thedebt to asset ratio. The effect on income depends on how much lease payments differfrom the amount of depreciation that would be recognized had the leased property beencapitalized. It is unlikely that an analyst can adjust for this variance.b.Germany - Two different purchase methods are allowed, and goodwill can be treatedseveral ways. The effects on reported earnings and the debt to asset ratio are unclear andit is unlikely that an analyst can adjust for these variances.c.Czech Republic –Goodwill may be written off in the first year of consolidation orcapitalized and amortized over a maximum of 20 years. The international norm is now tocapitalize goodwill and impairments test it each year. If goodwill is written offimmediately, there will be no effect on income compared to the international norm,except in a year where an impairments write-down would occur. The debt to asset ratiowill be higher compared to the international norm. If goodwill is capitalized andamortized, reported earnings will be lower than what it would be under the internationalnorm. As goodwill gets amortized, the debt to asset ratio will increase compared to theinternational norm. Analysts should be able to adjust to achieve “apples to apples”comparisons as long as the effects of the goodwill accounting are disclosed by Czechcompanies.d.The Netherlands - Comprehensive current value accounting. Though only used by aminority of Dutch companies, this microeconomics approach to measurement isencouraged in the Netherlands to an extent not seen elsewhere. Expenses should behigher under current value accounting, especially for cost of goods sold and depreciation.This means that reported earnings will be lower. With higher asset values, the debt toasset ratio will decrease. Generally, the effects of applying current value accounting aredisclosed in footnotes, so analysts should be able to adjust for this variance.e.U.K. – Assets may be valued at historical cost, current cost, or a combination of the two.To the extent that current cost is used, the effects on reported earnings and the debt toasset ratio will be the same as described for Dutch current value accounting. Analystswill be able to adjust for this variance to the extent that the effects of using current costsare disclosed in the footnotes.6. At the time of writing, the following numbers are reported by the World Federation of Stocka Euronext is a merger of the Paris, Amsterdam, and Brussels Stock Exchanges.The London Stock Exchange is significantly larger than the other stock exchanges in terms of numbers of listed companies. It also has more foreign listed firms. However, Euronext has proportionately more foreign listed firms than the other exchanges. Students will probably speculate that most of the “foreign” listed firms on these exchanges are from other European countries, a statement that is in fact true. No data are reported by the Prague Stock Exchange. It is not a member of the World Federation of Stock Exchanges. However, the chapter notes that the Prague Stock Exchange is small.7. The country whose GAAP is most oriented toward equity investors appears to be the UnitedKingdom. Its GAAP is closest to IFRS, which is clearly aimed at equity investors. Under U.K.GAAP, goodwill may be capitalized and impairments tested, the IFRS treatment. LIFO is alsonot permitted, the IFRS treatment. The Netherlands comes in “second,” but Dutch GAAP differs with IFRS on these two issues. The country whose GAAP is least oriented toward equity investors appears to be Germany, with France a close second. Germany has the most differences with IFRS.8. At the time of writing, the following companies are listed on the New York Stock Exchange fromthe European countries discussed in this chapter:FranceAir France - KLMAlcatel-LucentAlstomAXACompagnie Generale Geophysique-VeritasFrance TelecomGroupe DanoneLafargePublicis GroupeRhodiaSanofi-SynthelaboSCOR GroupSodexho AllianceSuezTechnipThomsonTOTAL .Veolia EnvironmentGermanyAllianzAltanaBASFBayerDaimlerChryslerDeutsche BankDeutsche TelekomE.ONEpcosFresenius Medical CareInfineon TechnologiesPfeiffer Vacuum TechnologyQimondaSAPSGL CarbonSiemensCzech Republic – None.NetherlandsABN AMROAEGONAerCap HoldingsArcelor MittalBuhrmannChicago Bridge & Iron CompanyCNH GlobalCore LaboratoriesHeadING GroupJames Hardies IndustriesReed ElsevierRoyal AholdRoyal Dutch ShellRoyal KPNRoyal Philips ElectronicsTNTUnileverVan der Moolen Holding United KingdomAbbey NationalAMVESCAPAstraZeneca GroupBarclays BankBarclaysBG GroupBHP BillitonBPBritish AirwaysBritish Sky Broadcasting GroupBT GroupBunzlCadbury SchweppesCarnivalCorus GroupDiageoGallaher GroupGlaxoSmithKlineHansonHSBC HoldingImperial Chemical IndustryImperial Tobacco GroupInterContinental Hotels GroupInternational PowerLloyds TSB GroupNational GridNational Westminster BankPearsonPrudentialReed ElsevierRio TintoThe Royal Bank of Scotland GroupScottish PowerSignet GroupSmith & NephewSpirent CommunicationsTomkinsUnileverUnited UtilitiesVodafone GroupWOLSELEYThe United Kingdom and the Netherlands have the most listed companies from European countries. The United Kingdom has the most, reflecting a common language and financial reporting heritage with the United States. The Netherlands has the second most. The chapter talks about Dutch companies’ long history of international listings and the fact that the Amsterdam Stock Exchange has not been an important source of finance. It is not surprising that Dutch companies would look to the United States for finance. Dutch financial reporting is also aimed at fair presentation, just as the United States (and United Kingdom). There are no Czech companies listed on the NYSE, reflecting the fact that the Czech Republic has only recently become a market economy.9. The role of government in developing accounting and auditing standards is strongest in France.Government agencies are responsible for both activities and government involvement is all-encompassing. The private sector has little or no influence. The government plays the least role in the United Kingdom and the Netherlands. In both countries, the private sector is responsible for both accounting and auditing standards. Government influence is strong in Germany, but the German Accounting Standards Board is in the private sector and the German Institute is responsible for audit standards. The government is responsible for accounting standards in the Czech Republic (the Ministry of Finance), but auditing standards are developed by the Chamber of Auditors, a self-regulated professional body.10. The European Commission has set up the European Group of Auditors’ Oversight Bodies(EGAOB) to coordinate the new public oversight systems of statutory auditors and audit firms within the European Union. The EGAOB may also provide input to the Commission on issues such as endorsing International Standards on Auditing and assessing the public oversight systems in individual European countries. These public oversight systems have responsibility for overseeing:•The approval and registration of statutory auditors and audit firms•The adoption of standards on ethics, internal control of audit firms and auditing•Continuing education, quality assurance and investigative and disciplinary systems.At the time of writing, the EU Web site listed four EU countries with an auditing oversight body: •France (Le Haut Conseil du Commissariat aux Comptes)•Germany (Abschlussprüferaufsichtskommission – Auditor Oversight Commission)•Ireland (Irish Auditing & Accounting Supervisory Authority)•United Kingdom (Financial Reporting Council)12.a.All countries require the purchase method, so there is no effect on the ratios for thismethod.b.All countries require that goodwill be capitalized and amortized, so there is no effect onthe ratios for this method. Compared to the IFRS treatment (capitalize and impairmentstest), the general effect is: (1) liquidity ratios unaffected; (2) debt to equity ratiounaffected; debt to asset ratio will be higher; (3) both profitability ratios will be lower.c.The equity method is used in all five countries, so there is no effect on comparative ratios.d.Current cost revaluations are allowed in the Netherlands and U.K. This practice results inhigher asset values, higher equity, and lower income (because of higher depreciation andcost of goods sold charges). Both solvency ratios and both profitability ratios willdecrease. The liquidity ratios should be unaffected.e.German and French depreciation charges are tax-based, which are normally higher thaneconomics-based depreciation. This will reduce income and lower the profitability ratios.The more rapid write-off of fixed assets will cause lower total asset values. Thus, thedebt to asset ratio should increase. The debt to equity ratio and both liquidity ratiosshould be unaffected.f.LIFO is permitted in Germany and the Netherlands, but not widely used. Companiesusing LIFO should have lower income, so lower profitability ratios. Inventory willprobably be lower, causing the debt to asset ratio to increase and the current ratio todecrease. Cash flow to current liabilities will be unaffected.g.Probable losses are accrued in all five countries, so there is no effect on comparativeratios.h.Finance leases are not capitalized in France, Germany, and the Czech Republic.Companies will report comparatively lower noncurrent liabilities and noncurrent assets.Income will also be affected, but the amount is probably immaterial. The liquidity ratiosshould be unaffected. Both solvency ratios should be lower and return on assets will behigher. The effect on return on equity is probably immaterial.。