会计学企业决策的基础14版15解析课件

GLOBALBUSINESSANDACCOUNTINGChapter

15GLOBALBUSINESSANDACCOUNTINGLearningObjectiveLO1Todefinefourmechanisms

companiesusetoglobalize

theirbusinessactivities.LearningObjectiveLO1TodefineGlobalizationOccursasmanagersbecomeawareofandengageincross-bordertradeandoperations.Ahighlevelofglobalizationisamultinationalenterprisethatbeginswithrawmaterialextractionandendswithfinalproductassemblyandsalesinmultipleforeignlocations.GlobalizationOccursasmanagerGlobalizationGlobalizationtypicallyprogressesthroughaseriesofstagesthatinclude:ExportingLicensingJointventuresWhollyownedsubsidiariesGlobalsourcing.GlobalizationGlobalizationtypLearningObjectiveLO2Toidentifyhowglobal

environmentalforces—

(a)politicalandlegalsystems,

(b)economicsystems,

(c)culture,and(d)technology

andinfrastructure—affect

accountingpractices.LearningObjectiveLO2ToidentiEnvironmentalForces

ShapingGlobalizationGlobalizationPoliticalandlegal

systemEconomic

systemCultureTechnologyand

infrastructureEnvironmentalForces

ShapingGEnvironmentalForces

ShapingGlobalizationPlannedEconomy

GovernmentownsfactorsofproductionMarketEconomy

PeopleownsfactorsofproductionEnvironmentalForces

ShapingGEnvironmentalForces

ShapingGlobalizationEnvironmentalForces

ShapingGLearningObjectiveLO3Toexplainwhythereis

demandforharmonization

ofglobalfinancial

reportingstandards.LearningObjectiveLO3ToexplaiHarmonizationofFinancialReportingStandardsTheInternationalAccountingStandardsBoard(IASB)hasasoneofitsstatedgoalstheharmonizationofaccountingstandards.Harmonizationisusedtodescribethestandardizationofaccountingmethodsandprinciplesusedindifferentcountriesthroughouttheworld.HarmonizationofFinancialRepHarmonizationofFinancialReportingStandardsHarmonizationofFinancialRepLearningObjectiveLO4Todemonstratehowto

convertanamount

ofmoneyfromone

currencytoanother.LearningObjectiveLO4TodemonsForeignCurrencies

andExchangeRatesAnexchangerateistheamountitcoststopurchaseoneunitofcurrencywithanothercurrency.¥1,000,000×$0.00764=$7,640ForeignCurrencies

andExchangLearningObjectiveLO5Tocomputegainsorlosses

onreceivablesorpayables

thatarestatedina

foreigncurrencywhen

exchangeratesfluctuate.LearningObjectiveLO5TocomputAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.Theamountispayableinfullonthatdate.OnJanuary1,2007,theexchangerateis$0.97perEuro.U.S.companypurchases€100,000fromfinancialinstitution.AccountingforTransactions

wiAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.TheamountispayableinfullonFebruary15,2007.OnJanuary1,2007,theexchangerateis$0.97perEuro.At1/31/07thespotexchangerateis€1=$0.96.On2/15/07,theexchangerateis€1=$0.98.AccountingforTransactions

wiAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.TheamountispayableinfullonFebruary15,2007.OnJanuary1,2007,theexchangerateis$0.97perEuro.At1/31/07thespotexchangerateis€1=$0.96.On2/15/07,theexchangerateis€1=$0.98.AccountingforTransactions

wiAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.TheamountispayableinfullonFebruary15,2007.OnJanuary1,2007,theexchangerateis$0.97perEuro.At1/31/07thespotexchangerateis€1=$0.96.On2/15/07,theexchangerateis€1=$0.98.AccountingforTransactions

wiLearningObjectiveLO6Todescribeseveral

techniquesfor

“hedging”againstlosses

fromfluctuations

inexchangerates.LearningObjectiveLO6TodescriHedgingFairValueHedge

Anygainorlossisrecognizedcurrentlyinearnings.Ifthehedgeisonavailable-for-salesecurities,anygainorlossisreportedinothercomprehensiveincomeontheequitysectionofthebalancesheet.Futurecontractsaretherightto

receiveaspecifiedquantityof

foreigncurrencyatafuturedate.HedgingFairValueHedge

AnygaTranslationofForeignCurrencyFinancialStatementsThisisthefirstyearofoperationsfora100%ownedMexicansubsidiaryoftheU.S.enterprise,Matrix,Inc.TranslationofForeignCurrencTranslationofForeignCurrencyFinancialStatementsTranslationofForeignCurrencTranslationofForeignCurrencyFinancialStatementsIfdividendsarepaid,thetranslationisbasedonthehistoricalratewhenthedividendispaid.Thetranslatedendingretainedearningscarriesforwardtothenextaccountingperiod.TranslationofForeignCurrencTranslationofForeignCurrencyFinancialStatementsThetranslationadjustmentisreportedinothercomprehensiveincomeintheequitysectionofthebalancesheetTranslationofForeignCurrencLearningObjectiveLO7Todiscusshowglobal

sourcingincreases

productcostcomplexity.LearningObjectiveLO7TodiscusGlobalSourcingDifferencesinexchangeratesinmanydifferentcountriescancreatesignificantcomplexitiesforfirmspracticingglobalsourcing.Manycompaniesunderestimatethecostofglobalizingtheirbusinessoperationsbecausetheyarenotfamiliarwiththeenvironmentalcharacteristicspreviouslydiscussed.€¥£₣₧Customs

dutiesImport

feesMulticountry

taxlawsTax

treatiesGlobalSourcingDifferencesinLearningObjectiveLO8Toexplaintheimportance

oftheForeignCorrupt

PracticesAct.LearningObjectiveLO8Toexplai

Inmanycountriesaroundtheworld,briberyispartofdoingbusiness.Inmanycountries,thisofficiallysanctionedcorruptionisnotviewedaswrongorunethical.However,U.S.-basedbusinessesareprohibitedfrominfluencepeddling.TheIMFandWorldBankinstitutedpoliciestocutofffundingtocountriesignoringcorruptpractices.ForeignCorruptPracticesActInmanycountriesaroundtheEthics,Fraud,and

CorporateGovernanceTheForeignCorrupt

PracticesAct(FCPA)applies

toU.S.companiesandforeigncompaniesoperatinginthe

UnitedStates,theiraffiliates,

andtheiragents.ViolationsoftheFCPA

exposecompaniesandindividuals

tobothcivilandcriminalliability.Ethics,Fraud,and

CorporateGEndofChapter15EndofChapter15GLOBALBUSINESSANDACCOUNTINGChapter

15GLOBALBUSINESSANDACCOUNTINGLearningObjectiveLO1Todefinefourmechanisms

companiesusetoglobalize

theirbusinessactivities.LearningObjectiveLO1TodefineGlobalizationOccursasmanagersbecomeawareofandengageincross-bordertradeandoperations.Ahighlevelofglobalizationisamultinationalenterprisethatbeginswithrawmaterialextractionandendswithfinalproductassemblyandsalesinmultipleforeignlocations.GlobalizationOccursasmanagerGlobalizationGlobalizationtypicallyprogressesthroughaseriesofstagesthatinclude:ExportingLicensingJointventuresWhollyownedsubsidiariesGlobalsourcing.GlobalizationGlobalizationtypLearningObjectiveLO2Toidentifyhowglobal

environmentalforces—

(a)politicalandlegalsystems,

(b)economicsystems,

(c)culture,and(d)technology

andinfrastructure—affect

accountingpractices.LearningObjectiveLO2ToidentiEnvironmentalForces

ShapingGlobalizationGlobalizationPoliticalandlegal

systemEconomic

systemCultureTechnologyand

infrastructureEnvironmentalForces

ShapingGEnvironmentalForces

ShapingGlobalizationPlannedEconomy

GovernmentownsfactorsofproductionMarketEconomy

PeopleownsfactorsofproductionEnvironmentalForces

ShapingGEnvironmentalForces

ShapingGlobalizationEnvironmentalForces

ShapingGLearningObjectiveLO3Toexplainwhythereis

demandforharmonization

ofglobalfinancial

reportingstandards.LearningObjectiveLO3ToexplaiHarmonizationofFinancialReportingStandardsTheInternationalAccountingStandardsBoard(IASB)hasasoneofitsstatedgoalstheharmonizationofaccountingstandards.Harmonizationisusedtodescribethestandardizationofaccountingmethodsandprinciplesusedindifferentcountriesthroughouttheworld.HarmonizationofFinancialRepHarmonizationofFinancialReportingStandardsHarmonizationofFinancialRepLearningObjectiveLO4Todemonstratehowto

convertanamount

ofmoneyfromone

currencytoanother.LearningObjectiveLO4TodemonsForeignCurrencies

andExchangeRatesAnexchangerateistheamountitcoststopurchaseoneunitofcurrencywithanothercurrency.¥1,000,000×$0.00764=$7,640ForeignCurrencies

andExchangLearningObjectiveLO5Tocomputegainsorlosses

onreceivablesorpayables

thatarestatedina

foreigncurrencywhen

exchangeratesfluctuate.LearningObjectiveLO5TocomputAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.Theamountispayableinfullonthatdate.OnJanuary1,2007,theexchangerateis$0.97perEuro.U.S.companypurchases€100,000fromfinancialinstitution.AccountingforTransactions

wiAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.TheamountispayableinfullonFebruary15,2007.OnJanuary1,2007,theexchangerateis$0.97perEuro.At1/31/07thespotexchangerateis€1=$0.96.On2/15/07,theexchangerateis€1=$0.98.AccountingforTransactions

wiAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.TheamountispayableinfullonFebruary15,2007.OnJanuary1,2007,theexchangerateis$0.97perEuro.At1/31/07thespotexchangerateis€1=$0.96.On2/15/07,theexchangerateis€1=$0.98.AccountingforTransactions

wiAccountingforTransactions

withForeignCompaniesOnJanuary1,2007,aU.S.companypurchasesequipmentfromanItaliancompanyfor€100,000.TheamountispayableinfullonFebruary15,2007.OnJanuary1,2007,theexchangerateis$0.97perEuro.At1/31/07thespotexchangerateis€1=$0.96.On2/15/07,theexchangerateis€1=$0.98.AccountingforTransactions

wiLearningObjectiveLO6Todescribeseveral

techniquesfor

“hedging”againstlosses

fromfluctuations

inexchangerates.LearningObjectiveLO6TodescriHedgingFairValueHedge

Anygainorlossisrecognizedcurrentlyinearnings.Ifthehedgeisonavailable-for-salesecurities,anygainorlossisreportedinothercomprehensiveincomeontheequitysectionofthebalancesheet.Futurecontractsaretherightto

receiveaspecifiedquantityof

foreigncurrencyatafuturedate.HedgingFairValueHedge

AnygaTranslationofForeignCurrencyFinancialStatementsThisisthefirstyearofoperationsfora100%ownedMexicansubsidiaryoftheU.S.enterprise,Matrix,Inc.TranslationofForeignCurrencTranslationofForeignCurrencyFinancialStatementsTranslationofForeignCurrencTranslationofForeignCurrencyFinancialStatementsIfdividendsarepaid,thetranslationisbasedonthehistoricalratewhenthedividendispaid.Thetranslatedendingretainedearningscarriesforwardtothenextaccountingperiod.TranslationofForeignCurrencTranslationofForeignCurrencyFinancialStatementsThetranslationadjustmentisreportedinothercomprehensiveincomeintheequitysectionofthebalancesheetTranslationofForeignCurrencLearningObjectiveLO7Todiscusshowglobal

sourcingincreases

productcostcomplexity.LearningObje