Problem: 1 International accounting is impacted by a wide range of factors, including accounting diversity, global accounting standards, multinational companies, and the global economy.Think about the meaning of international accounting. As you do so, consider the variety of factors that impact it. Consider how accounting diversity can potentially create problems internationally, the implications of global (international) accounting standards, and how international accounting impacts multinational companies, as well as local and global economies. Also think about factors that you believe have the greatest and least impact on international accounting.
With these thoughts in mind write an analysis of factors that have the greatest and least impact on international accounting.
Problem 2. A substantial portion of the global economy can be attributed to international business and trade of imports and exports. In recent years, there has been tremendous growth with international business and trade, as well as growth in the number of companies involved with trade. The sheer scope of international business and trade of importers and exporters inevitably lends itself to accounting issues. Consider the impact of undervalued Chinese currency and the penalties Congress is considering imposing on Chinese trade on the company. Write a brief evaluation of the impact of one of the above current issues on companies. Provide your opinion of ways in which countries and lawmakers can resolve the current issue you selected.
Problem 3. Users of financial statements depend on companies to report fair and accurate financial data. Accounting standards and principles not only support this fair and accurate reporting, but they also help create consistency that allows for reliable financial comparisons between different companies. In the United States, the Securities and Exchange Commission (SEC) requires publicly-traded companies to follow the U.S. Generally Accepted Accounting Principles (U.S. GAAP). Although these authoritative accounting principles are primarily established by the FASB, there are many boards and organizations that contribute to the standard setting process. These principles have a direct impact on the way data is organized and presented, which in turn can have an impact on how companies make decisions and operate. Consider the impact of the authoritative accounting principles that govern international accounting in the United States on Wal-Mart's financial statements.