International Accounting

International Accounting, 7/e
Frederick D.S. Choi
Gary K. Meek
Chapter 1: Introduction
www.HelpWithAssignment.com

Learning Objectives
 How is international accounting distinct from
domestic accounting?
 What does international accounting diversity entail?
 Does international accounting have a history?
 What factors are contributing to the importance of
international accounting as a field of study?
 What external and internal reporting issues arise
when business and investing transcend national
borders?
 What is meant by the term, global capital markets,
and what does development mean for capital market
participants?

What is International Accounting?
 Domestic accounting: an information
specialty providing information about a firm to
users of that information as a basis for
economic decisions.
 International accounting (defined): same
as above except that the firm being reported
on is a multinational company with operations
and transactions that cross national
boundaries or an entity with reporting
obligations to non-domestic readers.

What Does International
Accounting Diversity Entail?
 Measurement principles
 Financial disclosure (corporate transparency)
 Auditing practices

Contributing Factors
 Accounting’s international heritage
 Double-entry originates in the Italian city states.
 Bookkeeping spreads to Germany and assists the spread
of capitalism.
 Dutch enhance income measurement.
 French use accounting for governmental planning and
control.
 Double entry assists the British in managing and controlling
commercial interests in the colonies.
 Accounting plays a major role in the U.S. industrial
revolution.

Contributing Factors (contin)
 Paradox of international accounting
 In many countries, accounting remains a nationalistic
affair.
 Accounting serves people and institutions whose
decisions are international in scope.
 Accounting diversity creates a demand for
harmonization.

 Growth and spread of multinational operations

 Reporting issues when business transcends
national boundaries
 Consolidation of foreign accounts
 Accounting for foreign currency fluctuations
 Accounting for changing prices
 International planning and control
 Performance evaluation of foreign operations
 Financial risk management
 International taxation and transfer pricing
 Financial innovation
 Identifying potential market risks
 Quantifying trade-offs associated with alternative risk reduction strategies
 Measuring risk exposures
 Accounting for specific hedge products
 Evaluating the effectiveness of hedging programs

 Global competition
 Competitive
benchmarking
necessitates
international
comparisons.

 Cross-border mergers and acquisitions
 Corporate valuation is a function of accounting
measurements that vary from country to country.
 E.g., the e in p/e valuation multiples.
 Internationalization of capital markets
 Raising external finance abroad means that
financial reports must increasingly travel
internationally.

 Reporting issues associated with
internationalization of capital markets
 How to analyze and interpret foreign accounts?
 How to report to foreign readers?
 How to harmonize reporting standards
internationally?

Other Chapter Exhibits

Chapter Exhibits (contin)

For more details on Accounting Assignment Help visit our website
at http://www.helpwithassignment.com/accounting-assignment-help

International Accounting

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (14)

Ähnlich wie International Accounting

Ähnlich wie International Accounting (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

International Accounting