Chapter One Introduction to International Accounting Learning Objective 1. Understand the nature and scope of international accounting. 2. Describe accounting issues created by international trade. 3. Explain reasons for‚ and accounting issues associated with‚ foreign direct investment (FDI). 4. Describe the practice of cross-listing on foreign stock exchanges. 5. Explain the notion of global accounting standards. 6. Examine the importance of international trade‚ FDI‚ and
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International Accounting Standards Board (IASB) is an independent‚ private-sector body that develops and approves International Financial Reporting Standards (IFRS). The IASB was formed in 2001 to replace the International Accounting Standards Committee. Its mission is “to develop a single set of high quality‚ understandable‚ enforceable and globally accepted International Financial Reporting Standards”. The Financial Accounting Standards Board (FASB) is a private‚ not-for-profit organization whose
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Print. Bragg‚ Steven M. Wiley GAAP 2011: Interpretation and Application of Generally Accepted Accounting Principles. Hoboken‚ New Jersey. John Wiley & Sons Inc.‚ 2010. Print. "FASB: Property‚ Plant and Equipment." FASB: Financial Accounting Standards Board. N.p.‚ n.d. Web. 26 Nov. 2012. <http://www.fasb.org/jsp/FASB/Page/SectionPage>. Kieso‚ Daniel E.‚ Jerry J. Weygandt‚ and Terry D. Warfield. "Wiley: Intermediate Accounting‚ 14th Edition." Wiley: Intermediate Accounting‚ 14th Edition. N
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Ratios‚ margins and financial leverage The following figures are taken from the latest 12 months of data available‚ in this case for the latest 12 months ending in September 2010. For Microsoft‚ the quick ratio is defined as “cash and equivalents plus receivables‚ divided by current liabilities†(Forbes‚ 2010) is 2.1. A company with a Quick Ratio of less than one is unable to pay back their current liabilities. The current ratio‚ total current assets divided by total current liabilities
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21. General-purpose financial statements are the product of a. financial accounting. b. managerial accounting. c. both financial and managerial accounting. d. neither financial nor managerial accounting. 22. Users of financial reports include all of the following except a. creditors. b. government agencies. c. unions. d. All of these are users. 23. The financial statements most frequently provided include all of the following
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Accounting 3314 International Assignment #1 IASB stands for International Accounting Standards Board; it is the independent board charged with the standard setting of the IFRS. The IASB is important because it develops and publishes the IFRS as well as provides rulings on interpretations of the IFRS. The IASB consist of 15 fulltime multinational members; the current chairman is Hans Hoogervorst from the Netherlands. IFRS stands for International Financial Reporting Standards and is the organization
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P2-q1a Convergence between IFRSs and US GAAP The IASB and the US Financial Accounting Standards Board (FASB) have been working together since 2002 to achieve convergence of IFRSs and US generally accepted accounting principles (GAAP). A common set of high quality global standards remains a priority of both the IASB and the FASB. In September 2002 the IASB and the FASB agreed to work together‚ in consultation with other national and regional bodies‚ to remove the differences between international
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Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards‚ the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However‚ there are also several key differences between the two. Presently‚ the United States Financial Accounting Standards Board (FASB) and the IASB have committed to work together
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performance. Different stages involved in financial accounting are governed by certain standards set by organisations such as The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The standards made by IASB are known as International Financial Reporting Standards (IFRS) and by FASB is known as Generally Accepted Accounting Principles (GAAP). IFRS is applicable in international level and GAAP is used mainly in the United States. What is meant by a ‘conceptual
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Dye‚ R. and Sunder‚ S. (2001). ’Why not allow the FASB and IASB standards to compete in the US? ’ Accounting Horizons‚ 15:257-271. Easterbrook‚ F. and Fischel‚ D. (1984). ’Mandatory disclo- 272 sure and the protection of investors ’. Virginia Law Review‚ 70: 669-715. FASB (1998). Statement of Financial Accounting Standards No. 133‚ Accounting for Derivative Instruments and Hedging Activities. Norwalk‚ CT: Financial Accounting Standards Board. FASB (2003). Statement of Financial Accounting Standards
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