International Accounting: User Perspectives / Edition 4

by Saudagaran

Overview

As business and capital markets continue to globalize, the need for cross-border financial information has increased. International Accounting: A User Perspective, by Shahrokh M. Saudagaran and L. Murphy Smith, introduces international accounting concepts to future accountants and business managers. In addition: The book takes a user perspective based on the fact that this perspective will be the most beneficial to future accountants and business executives, who will be users of transnational financial information. Because much of the text is based directly or indirectly on research evidence, it helps bring "state of the art" international accounting material into the classroom. The research provides the international accounting theory that pervades the decision making of every accountant and business manager. Every effort has been made to present the material completely, yet succinctly, and in a writing style that is easy to read and understand.

Product Details

ISBN-13:	9780808036876
Publisher:	C C H, Incorporated
Publication date:	07/28/2013
Edition description:	New Edition
Pages:	1
Product dimensions:	7.00(w) x 9.80(h) x 0.70(d)

Table of Contents

Chapter 1 Financial Reporting in The Global Arena 1-1

Introduction 1-1

Interaction Between Accounting and Its Environment 1-3

Nature of Capital Markets 1-3

Type of Reporting Regime 1-4

Size and Complexity of Business Entities 1-5

Type of Legal System 1-5

Level of Enforcement of Regulations 1-6

Rate of Inflation 1-6

Political and Economic Ties 1-7

Stature of the Accounting Profession 1-8

Existence of a Conceptual Framework 1-9

Quality of Accounting Education 1-10

Diverse Roles of Accounting in Countries 1-11

Policy Choices in Accounting 1-13

Effects of Diversity on Capital Markets 1-16

Classification of Financial Accounting and Reporting Systems 1-19

Review of Selected Classification Studies 1-19

Major Challenges Facing Accounting Globally 1-22

Global Convergence 1-22

Quality of Financial Reporting in Developed and Emerging Economies 1-22

Social Responsibilty Reporting 1-22

Financial Reporting in the High Technology Era 1-23

Summary 1-24

Questions 1-24

Exercises 1-25

Cases 1-27

References 1-29

Test Prepper Questions 1-33

Chapter 2 The Move to International Financial Reporting Standards 2-37

Introduction 2-37

Rationale for Harmonization 2-38

Pressures for Harmonization 2-40

Investors 2-40

Multinational Companies 2-40

Regulators 2-40

The Securities Industry and Stock Exchanges 2-41

Emerging Economies 2-41

Obstacles to Harmonization 2-41

Measuring Harmonization 2-43

Supra-national Organizations Engaged in Accounting Harmonization 2-44

International Accounting Standards Committee 2-44

International Accounting Standards Board 2-45

International Federation of Accountants 2-46

International Organization of Securities Commissions 2-59

United Nations 2-60

Organization for Economic Cooperation and Development 2-60

Other Harmonization Efforts 2-61

Bilateral or Mutual Agreements 2-61

World-Class Issuer 2-62

The IASC/IOSCO Initiative 2-63

Transition to IFRS in the US 2-63

Evidence on Harmonization 2-64

Global 2-64

Regional 2-65

Summary 2-71

Questions 2-72

Exercises 2-73

Cases 2-74

References 2-77

Test Prepper Questions 2-80

Chapter 3 Accounting for Currency Exchange Rate Changes 3-85

Introduction 3-85

Overview of Foreign Currency Markets and Exchange Rates 3-86

Foreign Exchange Exposure 3-87

Accounting for Exchange Rate Fluctuations 3-89

Foreign Currency Transaction Versus Translation 3-89

Translation Methods 3-92

Foreign Currency Translation in the United States 3-95

FASB Statement No. 8 (SFAS No. 8) 3-96

FASB Statement No. 52 (SFAS No. 52) 3-97

SFAS No. 52 and the Functional Currency Concept 3-100

SFAS No. 52 Translation in Highly Inflationary Economies 3-102

SFAS No. 133-Accounting for Derivatives and Hedging Activities 3-103

SFAS No. 161-Disclosures About Derivative Instruments and Hedging Activities 3-104

The International Accounting Standard on Foreign Currency Translation 3-105

Summary 3-106

Questions 3-106

Exercises 3-107

Cases 3-108

References 3-109

Test Prepper Questions 3-111

Chapter 4 Selected Financial Reporting and Disclosure Issues in the Global Context 4-115

Introduction 4-115

Accounting for Changing Prices 4-116

Inflation-Adjusted Accounting Models 4-118

General Price Level Adjusted (GPU) Model 4-119

Current Cost-Adjusted (CCA) Model 4-123

Accounting for Intangible Assets 4-125

Goodwill 4-126

Brands, Patents, and Trademarks 4-127

Research and Development 4-129

Geographic Segment Reporting 4-130

Research Evidence on Geographic Segment Reporting 4-131

Developments in Geographic Segment Reporting 4-137

Environmental and Social Reporting 4-139

Environmental Disclosures 4-139

Employee Disclosures 4-149

Global Reporting Initiative (GRI) 4-153

Survey of Corporate Responsibility Reporting 4-156

Value-added Statement 4-157

Summary 4-160

Questions 4-161

Exercises 4-162

Cases 4-164

References 4-166

Test Prepper Questions 4-169

Chapter 5 Using Corporate Financial Reports Across Borders 5-173

Introduction 5-173

Corporate Responses to Foreign Users of Financial Statements 5-174

Coping With Transnational Financial Reporting 5-185

Preparer Response to Transnational Financial Reporting 5-185

User Response to Transnational Financial Reporting 5-186

International Financial Statement Analysis 5-189

Depreciation and Revaluation of Long-lived Assets 5-189

Goodwill 5-190

Foreign Exchange 5-190

Pension and Other Post-employment Benefits 5-192

Consolidation and Group Reporting 5-192

Taxation 5-192

Additional Issues in International Financial Statement Analysis 5-197

Availability of Data 5-197

Reliability of Data 5-198

Timeliness of Data 5-198

Language, Terminology, and Format 5-199

Summary 5-201

Questions 5-201

Exercises 5-202

Cases 5-205

References 5-210

Test Prepper Questions 5-211

Chapter 6 Financial Reporting in Emerging Capital Markets 6-215

Introduction 6-215

The Nature and Importance of Emerging Capital Markets 6-217

The Role of Financial Reporting in Emerging Capital Markets 6-219

Characteristics of Financial Reporting in Emerging Capital Markets 6-220

Availability 6-220

Reliability 6-222

Comparability 6-227

Financial Reporting Policy Issues in Emerging Capital Markets 6-228

Information Availability 6-228

Strengthening Enforcement Capability 6-230

Convergence of Accounting Standards 6-231

Caveats Based on Recent Developments 6-232

Accounting in Selected Emerging Capital Markets 6-232

Mexico 6-233

People's Republic of China (PRC) 6-236

Summary 6-239

Questions 6-240

Exercises 6-241

Cases 6-243

References 6-245

Test Prepper Questions 6-248

Chapter 7 Managerial Issues In International Accounting 7-253

Introduction 7-254

Budgeting and Performance Evaluation 7-254

Using Appropriate Performance Measures 7-254

Using Appropriate Currencies 7-255

Transfer Pricing Policies 7-256

Other Considerations 7-256

Distinguishing Between Manager Performance and Subsidiary Performance 7-256

Some Comparative Evidence on Budgets and Performance Evaluation Systems 7-257

Global Risk Management 7-258

Multinational Capital Budgeting 7-258

Managing Foreign Exchange Risk 7-259

Transfer Pricing 7-262

Major Constituents Affected by Transfer Pricing Choices 7-262

Internal Constituents 7-263

External Constituents 7-263

Transfer Pricing Methods 7-265

Advance Pricing Agreements 7-267

Research Evidence on Determinants of International Transfer Pricing Methods 7-267

A Transfer Pricing Illustration 7-270

Information Technology 7-271

Complexities Involving IT Systems for MNCs 7-272

Global IT Challenges and Strategies 7-272

Ethics and Culture 7-274

Summary 7-277

Questions 7-278

Exercises 7-278

Cases 7-280

References 7-282

Test Prepper Questions 7-285

Appendices

List of Abbreviations A-289

Directory of Relevant Web Sites A-291

Subject Index I-295