Scenario:
You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility is that you are in charge of training the new hires for the year. The advantage of having these two responsibilities is that you can use the information gained in your accounting analysis to train your new hires.
Library Research Assignment:
The new hires have been debating capital structure and its relationship to countries accounting practices. You write your notes before tomorrows' training session and include the following:
* An explanation of the 3 capital structures.
* An explanation of at least 2 causes or reasons for differences in capital structure.
* A comparison of the accounting systems in 2 countries with different capital structures, including why each country's system is the way it is.
* Pick 1 country, and explain how the capital structure they use affects their accounting system in terms of (at minimum) transparency, tax accounting, financial accounting, and regulations.