国际会计复习资料2

1、Chap ter 1:What is Intern ati onal Acco un ti ng?Domestic accounting: an information specialty providing information about a firm to users of that information as a basis for econo mic decisi ons.International accounting (defined): same as above except that the firm being reported on is a mult in ati

2、 onal compa ny with operations and transactions that cross national boundaries or an entity with reporting obligations to non-domestic readers.What Does Intern ati onal Acco unting Diversity En tail? Measureme nt prin ciplesFinan cial disclosure (corporate tran spare ncy)Audit ing practicesCon tribu

3、t ing FactorsAccounting ' s international heritageDouble-entry originates in the Italian city states.Bookkeep ing spreads to Germa ny and assists the spread of capitalism.Dutch enhance in come measureme nt.French use accounting for governmental planning and con trol.Double entry assists the Brit

4、ish in man agi ng and con troll ing commercial in terests in the coloni es.Acco un ti ng plays a major role in the U.S. in dustrial revoluti on.Paradox of intern ati onal acco untingIn many countries, accounting remains a nationalistic affair. Acco un ti ng serves people and in stituti ons whose dec

5、isi ons are intern ati onal in scope.Acco un ti ng diversity creates a dema nd for harm oni zati on.Growth and spread of mult in atio nal operati onsReport ing issues whe n bus in ess transcends n ati onal boun dariesConsolidation of foreign accountsAcco un ti ng for foreig n curre ncy fluctuatio ns

6、Acco un ti ng for cha nging pricesIntern atio nal pla nning and con trolPerforma nee evaluati on of foreig n operati onsFinan cial risk man ageme ntInternational taxation and transfer pricingFinan cial inno vati onIdentifying potential market risksQuan tify ing trade-offs associated with alter nativ

7、e risk reduct ion strategiesMeasuri ng risk exposuresAcco unting for specific hedge productsEvaluati ng the effect iven ess of hedgi ng programsGlobal competiti onCompetitiveben chmark ingn ecessitates intern ati onalcomparis ons.Cross-border mergers and acquisiti onsCorporatevaluatio nis a function

8、 of acco untingmeasureme nts that vary from country to coun try.In ternatio nalizatio n of capital marketsRais ing exter nal finance abroad means that finan cial reports must i ncreasi ngly travel intern ati on ally.Reporting issues associated with internationalization of capital marketsHow to an al

9、yze and in terpret foreig n acco un ts?How to report to foreig n readers?How to harm onize report ing sta ndards intern ati on ally?Some questi ons in chapter 1:1. explain how international accounting differs from purely domestic acco un ti ng.In the domestic case, accounting is an information servi

10、ce that provides finan cial in formati on about a domestic en tity to domestic users of that information.Internationalacco unting is disti nctive in that the en tity being reported on is either a mult in ati onal compa ny with operati ons and tran sact ions that tran sce nd n ati onal boun daries or

11、 in volves an entiiy with reporting obligations to readers who are located outside the reporting entity' s country of domi2. what con temporary factors are con tribut ing to the intern ati on alizati on of the subject of acco unting.Factors contributing to the internationalization of the subject

12、 of accounting include: the growth and spread of mult in ati onal operati ons around the world, the phe nomenon of global competiti on, the in creas ing nu mber of cross-border mergers and acquisitions that occur almost daily, continued adva nces in in formati on tech no logy, and the internationali

13、zation of the world' s capital market：3. describe how foreign direct-investment activities differ from international trade and the implications of this differe nee for acco un ti ng.International trade involves importing and exporting activities.The major accounting issue associated with foreign

14、 trade involves accounting for foreign currency tran sact ions. Foreig n direct in vestme nt, on the other hand, in volves con duct ing operati ons abroad. This activity exposes accountants to a new set of issues that run the gamut from having to consolidate foreign currency accounts based on divers

15、e measurement rules to issues ofevaluati ng the performa nee of foreig n subsidiary man agers.Chapter 2:Why Study Developme nt and Classifieati on?Developme ntHelps understand a nation' s accounting.Explains the differences and similarities in accountingaround the world.Classifieati onHelps unde

16、rstand why and how national accountingsystems differ.Helps analyze whether these systems are converging or diverg ing.Are a way of viewing the world.-Reveals what group members have in com mon, and what dist in guishes groups from each other.Developme ntSources of financeEquity marketsProfits measur

17、e how well man agers have run the compa ny. Accounting is used to assess cash flows, risks, and to value the firm.Exte nsive disclosures.BanksCon servative earnings for creditor protecti on.Less exte nsive disclosures.Legal system-Code lawLaws are all-embraci ng.Acco un ti ng tends to be prescriptiv

18、e and procedural.Acco unting focuses on legal form.Acco un ti ng sta ndards and procedures are in corporated into n atio nal laws.-Com mon lawLaws develop on a case-by-case basis.Acco un ti ng develops from experie nee and judgme nt.Accounting tends to be flexible, adaptive, and innovative.Acco unti

19、ng focuses on econo mic substa nee.Accountingrules are established by private sectorprofessi onal orga ni zati ons.Taxatio nMust companies record revenues and expenses in their acco unts to claim them for tax purposes?Are finan cial acco un ti ng and taxati on the same? Or are they differe nt?Politi

20、cal and economic tiesAcco un ti ng ideas and tech no logies are tran sferred through conq uest, commerce, and other forces.In flatio nInflation distorts historical cost measurements.Countries with high inflation often require that companies in corporate price cha nges into the acco un ts.Level of ec

21、ono mic developme ntAffects the types of transactions and which ones are most prevale nt in the economy which, in turn,Affects the acco unting issues that are faced.Educatio nal levelAffects the capability for professi onal acco un ti ng trai ning. Where educati onlevels are low, coun tries importac

22、co unting training or send citize ns elsewhere to get it. SUMMARYSeveral variables are closely associated.-Com mon law legal system, strong equity markets, and separation of financial and tax accounting.-Code law legal system, credit-based financing, and acco unting rules that conform to tax law.Res

23、ult is two basic orientations of accounting.-Fair prese ntati on-Legal complia neeCultureCulture (Hofstede)In dividualism vs. collectivismPower dista nee -high vs. lowUncertainty avoidanee -high vs. lowMasculi nity vs. femi ninityAcco unting values (Gray)Professi on alism vs. statutory con trolUni f

24、ormity vs. flexibilityCon servatism vs. optimismSecrecy vs. tran spare ncyClassifieati onFour approaches to accounting development (Mueller 1967)-Macroee ono mic approachAcco un ti ng derived from and desig ned to enhance n ati onal macroee ono mic goals.Example: Swede n-Microee ono mic approachAcco

25、 un ti ng derived from microee onomics.Maintaining physical capitalSeparati on of capital and in comeReplaceme nt costsExample: the Netherla nds-I ndepe ndent discipli ne approachAcco un ti ng derived from bus in ess practices, judgme nt, and trial-a nd-error.Examples: U.K. and U.S.-Uniform approach

26、Acco unting is sta ndardized by cen tral gover nment and used as a tool for adm ini strative con trol.Example: FranceLegal systems: com mon law vs. code law acco un ti ng -Com mon law acco un ti ngOriented toward fair presentation, transparency, and full disclosureSeparatio n betwee n tax and finan

27、cial acco un ti ngAcco un ti ng sta ndard sett ing in private sectorParallels stockholder model of corporate gover nance-Code law acco un ti ngLegalistic orientation, opaque with low disclosureAlig nment betwee n tax and finan cial acco un ti ngAcco un ti ng sta ndard sett ing in public sectorParall

28、els stakeholder model of corporate gover nancePractice systems: fair presentation versus legal complia nee acco un ti ng-Why national accounting distinctions are becoming blurredImportanee of stock markets as a source of finance is grow ing.Dual finan cial report ing is beco ming more com mon, parti

29、cularly where duality is sanction ed.Some code law countries are shifting responsibility for acco unting sta ndard sett ing to the private sector.-Fair prese ntatio n acco un ti ngSubsta nee over form.Orie nted toward decisi on n eeds of exter nal in vestors.Helps judge man agerial performa nee and

30、predict future cash flows and profitabilityExte nsive disclosuresIFRS are aimed at fair prese ntati on.Found in U.K., U.S., Netherla nds and coun tries in flue need by them.The trend for consolidated financial statements.-Legal complia nee acco untingDesigned to satisfy government-imposed requiremen

31、ts, such as:Calculat ing taxable in comeCompl ying with macroec ono mic pla nCon servative measureme ntsIn come smooth ingWill persist in code law countries for individual-company finan cial stateme ntsSome questi ons:l. the chapter identifies seven economic,sociohistorical,and in stituti onal facto

32、rs believed to in flue nee acco unting development.explain how each one affects accounting practice.Sources of finance. Where capital markets/shareholders are the principal source of finance, accounting focuses on profitability, stewardship, and a fair presentation of results and finan cial positi o

33、n.There are high levels of disclosurein published financial statements. When banks are the principal source of finance, accounting tends to be conservative and disclosures are usually relatively low (banks have direct access to information). When gover nments are the prin cipal source of finance, ac

34、co un ti ng is aimed at the information needs of government agencies such as tax collecti on, assembli ng macroec ono mic statistics, or complia nee with macroec ono mic goals.Legal system. Acco un ti ng in code law coun tries tends to be highly prescriptive, detailed, and procedural, designed to co

35、ver every possible circumsta nee.Acco unting sta ndardsare a part of n ati onal laws. Acco un ti ng in com mon law countries is more adaptive and innovative and tends to allow more judgme nt to suit the circumsta nee. Acco un ti ng standards are set in the private sector.Taxation.This tends to paral

36、lel the legal system. Incom mon law countries (where accounting standards are set by the acco unting professi on), acco un ti ng and taxati on are separate. In code law countries (where accounting standards are national laws), accounting and taxation are esse ntially the same.Political and econo mic

37、 ties. Acco unting tech no logy and expertise is imported and exported based on the con tacts that nations have with each other through commerce, conq uest, etc.Inflation . Historical cost accounting is the basis for in itially record in g tran sact ions around the world.In flati onputs stress on th

38、e historical cost principle. Where inflation is high, acco un ti ng adjusts recorded amounts to reflect price level cha nges.Level of economic development. This factor defines the difficulty and types of the acco un ti ng issues that are faced in a n atio n. Acco unting is complex where bus in ess t

39、ran sact ions are complex (in highly developed econo mies); it is simpler where transactions are simpler (in less developed coun tries).Education levels. This factor defines the limits of acco un ti ng sophisticati on in a n ati on.Acco un ti ng cannotget very sophisticated where educatio n levels a

40、re relatively low (uniess the country imports accounting training or its citize ns are sent elsewhere for it).2. how do cultural values in flue nee acco unting?Culture underlies institutional and other arrangements in a nation that directly affect accounting development. In dividualism, power dista

41、nee, and un certa inty avoida nee are likely to be the most importa nt in flue nces. In dividualism, small power dista nee, and weak uncertainty avoidanee tend to be correlated with and found in com mon law coun tries with fair prese ntati on accounting.There is a strong accounting profession,accoun

42、tants rely on professional judgment, and capital markets are the prin cipal source of finan ce.Collectivism, large power distanee, and strong uncertainty avoida nee tend to be correlated with and found in code law coun tries with legal complia nee acco un ti ng.Theprofessi on is relatively weak - ac

43、co un ti ng is in flue need by law, in stead.Acco un ti ngis more con servative andprescriptive, and banks and governments are the principal sources of finance.3. what is the major accounting classifications in the world?The chapter discusses three majoracco untingclassifications. The first is the o

44、ne by Mueller (1967):? Macroec ono mic approach, where accounting practice is designed to enhance macroec ono mic goals;?Microec ono micapproach, whereacco un ti ngdevelops from theprin ciples of microec onomics;?In depe ndentdiscipli ne approach,where acco unting develops from bus in ess practices

45、based on judgme nt and trial-and-error; and? Uniform approach, where accounting is sta ndardized so it can be used as a tool of administrativecontrol bycen tral gover nment.The second classification is the one based on legal systems, which closely parallels the third classification based on practice

46、 systems. Gen erally speak ing, the features of com mon law acco un ti ng (legal system) are those described for fair presentation accounting (practice system). The features of code law accounting (legal system) are those described for legal complia nee acco unting (practice system).Fair prese ntati

47、 on (com mon law) emphasizes substa nee over form and is orie nted toward the decisi on n eeds of exter nal in vestors. Thus, it is capital markets orie nted.Finan cialstateme nts help in vestors judge man agerial performa nee and predict future cash flows and profitability. Exte nsive disclosures p

48、rovide additi onal releva nt in formati on for these purposes.Legal complianee (code law) accounting is designed to satisfygover nmen t-imposedrequireme nts such ascalculat ing taxable in come or compl ying with the n ati onal gover nment ' macroec ono mic pla n. The in come amount may also be t

49、he basis for divide nds paid to shareholders and bonuses paid to employees. Conservative measurements en sure that prude nt amounts are distributed and smooth in come brings stable tax, divide nd and bonus payouts.As no ted above, fair prese ntati on acco un ti ng is associated with com mon law coun

50、 tries, while legal complia nee accountingis associated with code law countries.However, many companies from code law countries now follow International Financial Reporting Standards in their consolidated financial statements. IFRS are based on the prin ciples of fair prese ntati on.4. Why national

51、accounting distinctions are becoming blurredImportanee of stock markets as a source of finance is grow ing.Dual finan cial report ing is beco ming more com mon, particularly where duality is sanction ed.Some code law countries are shifting responsibility for acco unting sta ndard sett ing to the pri

52、vate sector.Chapter 3:IFRS in the Europea n Un io nStarting in 2005, all EU-listed companies must follow IFRS in their con solidated finan cial stateme nts.Gen erally, IFRS con solidated stateme nts are permitted for non-listed compa ni es.Requireme nts for in dividual compa ny finan cial stateme nt

53、s vary -IFRS may be required, allowed, or prohibited.IFRS are based on fair prese ntati on prin ciplesFranceOverview-“ The Plan ”ati-nal uniform chart of accounts (national acco un ti ng code)Objectives and prin ciples of finan cial report ingDefin iti ons of eleme ntsRecog niti on and valuati on ru

54、lesStan dardized chart of acco untsModel finan cial stateme nts-Other in flue nces on French acco unting rules Commercial legislati on (Code de Commerce) Tax lawsAcco un ti ng regulati on and en forceme nt-CNC -National Accounting BoardKeeps pla n curre ntMakes ruli ngs and recomme ndati ons on acco

55、 unting issues -CRC -Accounting Regulation CommitteeCon verts CNC ruli ngs and recomme ndati ons into binding regulati ons-AMF -Fi nancial Markets AuthoritySupervises securities markets.-OEC Tnstitute of Public AccountantsReprese nts the acco unting professi on.Members prepare financial statements,

56、and provide tax, in formati on systems, and man ageme nt advisory services. -CNCC -National Institute of Statutory AuditorsMembers audit and give an opinion on finan cial stateme nts. Must report criminal acts to the High Council of External Auditors.Substa ntial overlap in OEC and CNCC membership.S

57、tatutory auditors not allowed to provide accounting services to the same clie nt.AMF oversees audits of listed companies, but relies on a committee of the CNCC to con duct audit-quality reviews.Unu sual features of French finan cial report ingMust report results of environmen tal activitiesReports a

58、imed at preve nti ng ban kruptciesSocial reportGerma nyOverview-Creditor protecti onCon servative bala nee sheet valuati onsReserves as protect ion aga inst un foresee n risks and in solve ncyAcco un ti ng is desig ned to compute a prude nt in come amount that leaves creditors unharmed after distributions are made to owners-I