Assignment
FOR QUESTIONS 1 AND 2 REQUIRED CHAPTERS ARE:
• Chapter 1: Introduction to International Accounting
• Chapter 2: Worldwide Accounting Diversity
• Chapter 3: International Convergence of Financial Reporting
Textbook:
Doupnik, T. S., & Perera, H. (2015). International accounting (4th ed.). New York, NY: McGraw-Hill Education.
1). International Operations CLO: Choose a company that you are familiar with that has significant overseas operations. In your post, address the following prompts:
• Explain the unique accounting issues that this company faces as a result of international operations.
• Describe any financial reporting issues that arise because of international operations.
• Are there any unique tax issues as a result of investing overseas?
• Discuss some of the issues that arise in evaluating and maintaining control over foreign operations.
Your post should be 200-250 words in length
2. International Harmonization CLO: 5. Chapter 3 describes different phases in the harmonization efforts of the IASC. Identify one of the phases and describe its importance in the overall scheme of international harmonization of accounting standards. Use evidence from the text or external sources to support your position.
Your post should be 200-250 words in length.
FOR QUESTIONS 3 AND 4 REQIRED CHAPTERS ARE:
• Chapter 4: International Financial Reporting Standards: Part I
• Chapter 5: International Financial Reporting Standards: Part II
Article
Ernst & Young. (2011, December). US GAAP versus IFRS. Retrieved from
https://www.ey.com/Publication/vwLUAssets/US_GAAP_v_IFRS:_The_Basics/$FILE/US%20GAAP%20v%20I
FRS%20Dec%202011.pdf
3). Who Should Regulate? CLOs: 4,5. Consider the following statement:
"Experience shows that the needs of national and international markets, for international harmonization in particular, are better served by self-regulation and development than by government regulation".
Based on what you've read this week, form an argument for, or against, this statement.
Develop a 200 - 300 word explanation supporting your position.
4). GAAP vs. IFRS CLOs: 3,4,5. 1st Post Due by Day 3. The United States uses Generally Accepted Accounting Principles (GAAP) as the basis of financial reporting. The International Financial Accounting Standards (IFRS) is an alternative way to report financials. This article Ernst & Young's US GAAP vs. IFRS: The Basicscompares the two methods of financial reporting.
After reading the article from Ernst and Young, answer the following questions:
• How does the GAAP reporting method cause cash flows to differ from net income?
• How are the features of the Income Statement, Balance Sheet, and Statement of Cash Flow utilized in both the GAAP and the IFRS reporting methods?
• Does it make sense to adapt a worldwide standard for financial reporting? Should this be mandated orvoluntary?
• Provide some of the potential costs and benefits of switching from GAAP to IFRS.