会计学：企业决策的基础（管理会计分册）（原书第19版）课件 Chap015-Global Business and Accounting

Chapter15GlobalBusinessandAccountingInternationalAccountingStandardsBoardTheInternationalAccountingStandardsBoard,whichisdiscussedinthischapter,beganamissionin1993todevelopfinancialreportingstandardsthatwouldbeacceptabletoallgovernmentsandtheirrelatedsecuritiesmarkets.Thisisaveryambitiousgoalbecauseaccountingrules,procedures,andstandardsareaffectedbythepolitical,legal,economic,andculturalsystemsinwhichtheyareembedded.GlobalizationGlobalizationoccursasmanagersbecomeawareofandengageincross-bordertradeandoperations.Thinkofglobalizationasacontinuousprocessinwhich,atthemostbasiclevel,apurelydomesticcompany’smanagersbecomeawarethatchangesinforeignexchangerates,internationaltechnologicaladvances,culturaldiversity,orinternationalpoliticalandeconomicissueswillhaveanimpactontheirfirm’sabilitytocompete.World’sLargestMultinationalsSource:GlobalFinance,February22,2019()CountryNumberofCompanies%oftotal(500)UnitedStates12625.2China12024.0Japan5210.4Germany326.4France285.6UnitedKingdom214.2SouthKorea163.2Netherlands153.0Switzerland142.8Canada122.4Other6412.8Globalization:BasicTerminologyExporting:Atthesimplestlevel,sellingagoodorservicetoaforeigncustomer.Whileexportingmaintainscontroloverproductcreation,licensinggivesupsomecontrolforamonetaryreturn.Internationallicensing:Acontractualagreementbetweenacompanyandaforeignpartyallowingtheuseoftrademarks,patents,technology,designs,processes,intellectualproperty,orotherproprietaryadvantage.Mostmajormultinationalfoodmanufacturingcompaniesareinvolvedinsomeformofinternationalproductlicensing.Globalization:BasicTerminology(concluded)Internationaljointventure:Acompanyownedbytwoormorecompaniesfromdifferentcountries.Whollyownedinternationalsubsidiary:

Createdwhenacompanyusesitsownfundstoconstructorpurchase100percentequitycontrolofaforeignsubsidiary.Globalsourcing:TheclosecoordinationofR&D,manufacturing,andmarketingacrossnationalboundariesandtypicallyincludesexporting,licensing,jointventures,andwhollyownedsubsidiariesincross-borderoperations.ProcessesforIncreasingGlobalizationThosecompanieswishingtoglobalizetypicallyprogressthroughthefollowingstages:(1)exportingdomesticallyproducedproducts,(2)establishinglicensingandjointventurearrangements,(3)creatingwhollyownedsubsidiaries,and(4)full-scaleglobalsourcing.EnvironmentalForcesImpactingGlobalizationPoliticalandLegalSystemsManagersoperatinginorplanningoperationsinforeignsettingsmustmonitorassociatedpoliticalrisksincluding:Threatofgovernmentcontrolorseizureofassets.Differingtaxes,tariffs,andlicensingfees.Restrictionsonforeignownershippercentage.Restrictionsoncurrencyflows.Tradeagreementsspecifyingrawmaterialsources

andlaborcontent.Duty-freeforeigntradezones.Taxincentivesencouragingordiscouragingstockownership.Policiesaffectingindividualsavings.Policiesimpactingeducationallevelofcitizens.EconomicSystems:PlannedEconomyTheeconomicsystemsunderwhichbusinessesoperatesignificantlyaffecttheformandavailabilityofaccountinginformation.PlannedeconomyGovernmentusescentralplanningtoallocateresourcesanddetermineoutputamongvarioussegmentsoftheeconomy.Landandproductionfacilitiesaregovernmentownedandcontrolled.TheformerSovietUnionandSovietEasternBloccountriesusedcentralplanningandhadplannedeconomies.Chinacontinuestousecentralplanningextensively.EconomicSystems:MarketEconomyMarketeconomyOwnershipoflandandthemeansofproductionareprivate,andmarketsdictatetheallocationofresourcesandtheoutputamongsegmentsoftheeconomy.Companiesformerlyoperatinginaplannedeconomycanencountersignificantdifficultieswhenattemptingtooperateinamarketeconomy.Thereversecanalsobetrue.EconomicSystems:IndustrialOrganizationsInsomecountries,businessesarrangethemselvesintoindustrialorganizationsasonemethodofraisingcapital.InSouthKoreaandJapan,companiesgroupthemselvesintoconglomeratesrepresentingdifferentindustries.SouthKoreanconglomerates,calledchaebol,andJapaneseconglomerates,calledkeiretsu,consistofcompaniesthataregroupedascustomersandsuppliers,andtheyusuallycontainabank.Withinthesecartelsofcompanies,suppliersreceiveloans,investmentcapital,technology,andlong-termsupplyagreementsfromcustomershigheruponthepyramid.EconomicSystems:IndustrialOrganizations(concluded)Suppliersintegratetheiroperationswithothersuppliersandwiththeircustomers.Transactionsbetweensuppliersandcustomersarenotarm’s-lengthasinmostU.S.transactions.KEYPOINTIntheUnitedStates,antitrustandprice-fixinglawsprecludethetypeoforganizedbusinessgroupsfoundinJapanandSouthKorea.InternationalCaseinPoint:SamsungSamsung,Hyundai,LG,andotherKoreanchaebolhavereportedimpressivejumpsinsalesandprofitsinrecentyears.However,whilethebigKoreancompaniesexpanded,thesmaller-andmedium-sizedfirmsintheKoreaneconomystruggled.Whilethechaebolunquestionablyfueledthecountry’sgrowthinrecentdecades,theyaresopowerfulthattheymayhavehamperedinnovationfromsmaller-andmedium-sizedcompaniesthat,inturn,mayharmKorea’slong-runeconomicsuccess.Economistsareconcernedthatthechaebol’sdeepeninginfluencemaybehurtingfaircompetitionwithsuppliersandstart-ups.CulturalMindsetsThinkofcultureasthementalmindsetthataffectsthewayindividualsinasocietyactandperceiveeachothers’actions.Expertshaveidentifiedfourculturalmindsetsthatsignificantlydifferamonginternationallocations.Individualismvs.collectivismThedegreeofinterdependencethatasocietymaintainsamongindividuals,wherehighinterdependenceconnotescollectivism.CitizensofAsiancountriestypicallyscorehigheroncollectivismthanthoseintheUnitedStates.CulturalMindsets(cont.)UncertaintyavoidanceTheextenttowhichmembersofasocietyfeeluncomfortableorthreatenedbyunknownoruncertainsituations.CitizensofSouthAmericancountriesscorehighonuncertaintyavoidance.Short-termvs.long-termorientationWithalong-termorientation,perseverance,thriftiness,maintainingoforder,andlastingrelationshipsarehighlyvalued.Ashort-termorientationfocusesonthepastandthepresent,ignoresthefuture,andvaluespersonalstability.CulturalMindsets(cont.2)Largevs.smallpowerdistanceLargepowerdistanceculturesacceptunequallydistributedpowerwithinandacrossinstitutionsandorganizations.Theideathateveryoneiscreatedequalorshouldhaveanequalvoiceismorehighlyvaluedinsmallpowerdistancesocieties.CulturalMindsets(concluded)InternationalCaseinPoint:ManagementTrainingWestern-stylemanagementtrainingisarecentdevelopmentinmanycountries.BudapesthasoneoftheoldestgraduatemanagementprogramsineasternEurope,anditwasfoundedfairlyrecentlyin1988.Morespecifically,becausecompaniesinformerlyplannedeconomiesusedcentrallydeterminedaccountsandprocedures,accountingasaprofessiondidnotexistineasternEuropepriorto1988.Asaresult,companiesestablishingbusinessoperationsineasternEuropeanlocationshavedifficultylocatingtrainedaccountingpersonnel.Inaddition,priorbusinessrecordsareunreliable.Beforetheearly1990s,therewerenoindependentauditors,publicaccountants,ormanagementaccountantsinmosteasternEuropeancountries.HarmonizationofFinancialReportingStandardsHarmonizationofaccountingstandardsdescribesthedevelopmentofsimilaraccountingmethodsandprinciplesforusethroughouttheworld.TheIASBisparticularlyinterestedinharmonizationandischargedwiththeresponsibilityofestablishingandgainingacceptanceofIFRSs.WhiletheIASBhasnoregulatoryauthorityinanycountry,itusesitsinfluencetomovethereportingstandardsofallcountriesclosertogetherinhopesofbetterharmonizingthosestandards.IFRSGlobalAdoptionandConvergenceGlobalVariationinAccountingPracticesCurrencyExchangeRatesAcurrencyexchangerateistheamountitcoststopurchaseoneunitofcurrencywithanothercurrency.Thustheexchangeratemaybeviewedasthe“price”ofbuyingoneunitofaforeigncurrency,statedintermsofthedomesticcurrency(whichforourpurposeisU.S.dollars).Exchangeratesfluctuatedaily,basedontheworldwidesupplyanddemandforparticularcurrencies.U.S.DollarEquivalentsforFiveForeignCurrencies*ManyEuropeancountries,suchasAustria,Belgium,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,theNetherlands,Portugal,andSpain,areusingtheeuro.CurrencyConversion:Example1AssumethataU.S.companyowesaJapanesecompany1millionyen(expressed¥1,000,000).Howmanydollarsareneededtosettlethisobligation,assumingthatthecurrentexchangerateis$0.009029peryen?TorestateanamountofforeigncurrencyintermsoftheequivalentamountofU.S.dollars,wemultiplytheforeigncurrencyamountbytheexchangerate,asfollows:CurrencyConversion:Example2ConsiderthataJapanesecompanyagreestopayaU.S.company$10,000forimportedgoods.Todeterminetheequivalentamountofyen,theJapanesecompanyneedstoknowthenumberofyenperdollar.Theyenperdollarcanbecomputedbydividingonedollarbythenumberofdollarsperyen.Thus,$1

÷

$0.009029/yen=¥110.75423/dollar.Usingtheyenperdollarexchangerate,wecanconvertthedollarstoyenasfollows.ExchangeRateJargonInthefinancialpress,currenciesareoftendescribedasstrongorweak,orasrisingorfallingagainstoneanother.Tounderstandsuchterminology,wemustrememberthatanexchangerateissimplythepriceofonecurrencystatedintermsofanothercurrency.Considerthetableshowninapreviousslide.TheexchangeratefortheJapaneseyenis$0.009029.Atthisexchangerate,$1isequivalentto¥110.75423(aspreviouslyshown).Thus,whilewewouldsaythattheexchangeratefortheJapaneseyenis$0.009029,theJapanesewouldsaythattheexchangeratefortheU.S.dollaris¥110.75423.IsItRisingOrFalling?Assumethattheexchangeratefortheyen(statedindollars)risesto$0.0109.Atthisexchangerate,$1isequivalenttoonly¥91.74($1÷$0.0109=¥91.74).IntheUnitedStates,wewouldsaythattheexchangeratefortheyenhasrisenfrom$0.009029to$0.0109.InJapan,however,theywouldsaythattheexchangerateforthedollarhasfallenfrom¥110.75423to¥91.74.Inthefinancialpress,itmightbesaidthat“theyenhasrisenagainstthedollar”orthat“thedollarhasfallenagainsttheyen.”TransactionExample:CreditPurchaseOnAugust1,aU.S.companypurchasesmerchandisefromaBritishcompanyatapriceof10,000Britishpounds(£).TheamountispayableinfullonSeptember30.OnAugust1,theexchangerateis$1.63perpound.CreditPurchase―PricesStatedinaForeignCurrencyTransactionExample:CreditPurchase(cont.)OnAugust1,aU.S.companypurchasesmerchandisefromaBritishcompanyatapriceof10,000Britishpounds(£).TheamountispayableinfullonSeptember30.OnAugust1,theexchangerateis$1.63perpound.AtSeptember30,theexchangerateis£1=$1.61.CreditPurchase―PricesStatedinaForeignCurrencyTransactionExample:CreditPurchase(concluded)OnAugust1,aU.S.companypurchasesmerchandisefromaBritishcompanyatapriceof10,000Britishpounds(£).TheamountispayableinfullonSeptember30.OnAugust1,theexchangerateis$1.63perpound.AtSeptember30,theexchangerateis£1=$1.66.CreditPurchase―PricesStatedinaForeignCurrencyTransactionExample:CreditSaleOnAugust1,aU.S.companysellsmerchandisetoaBritishcompanyfor£10,000.ThefullamountwillbecollectedonSeptember30.OnAugust1,theexchangerateis$1.63perpound.OnSeptember30,theexchangerateis£1=$1.61.CreditSale―PricesStatedinaForeignCurrencyTransactionExample:CreditSale(cont.)OnAugust1,aU.S.companysellsmerchandisetoaBritishcompanyfor£10,000.ThefullamountwillbecollectedonSeptember30.OnAugust1,theexchangerateis$1.63perpound.OnSeptember30,theexchangerateis£1=$1.61.CreditSale―PricesStatedinaForeignCurrencyTransactionExample:CreditSale(concluded)OnAugust1,aU.S.companysellsmerchandisetoaBritishcompanyfor£10,000.ThefullamountwillbecollectedonSeptember30.OnAugust1,theexchangerateis$1.63perpound.OnSeptember30,theexchangerateis£1=$1.66.CreditSale―PricesStatedinaForeignCurrencyForeignExchangeTransactionCurrencyFluctuations—WhoWinsandWhoLoses?Gainsandlossesfromfluctuationsinexchangeratesaresustainedbycompanies(orindividuals)thathaveeitherpayablesorreceivablesthatarefixedintermsofaforeigncurrency.UnitedStatescompaniesthatimportforeignproductsusuallyhavelargeforeignliabilities.CompaniesthatexportU.S.productstoothercountriesarelikelytohavelargereceivablesstatedinforeigncurrencies.StrategiestoAvoidLossesfromRateFluctuationsTherearetwobasicapproachestoavoidinglossesfromfluctuationsinforeignexchangerates.Oneapproachistoinsistthatreceivablesandpayablesbesettledatspecifiedamountsofdomesticcurrency.Theotherapproachiscalledhedgingandcanbeaccomplishedinanumberofways.Illustration:SettlementApproachAssumethataU.S.companymakeslargecreditsalestocompaniesinMexico,butanticipatesthattheexchangeratefortheMexicanpesowillgraduallydecline.TheU.S.companycanavoidlossesbysettingitssalespricesindollars.Then,iftheexchangeratedoesdecline,theMexicancompanieswillhavetospendmorepesostopayfortheirpurchases,buttheU.S.companywillnotreceivefewerdollars.Ontheotherhand,theU.S.companywillbenefitfrommakingcreditpurchasesfromMexicancompaniesatpricesstatedinpesos,becauseadeclineintheexchangeratewillreducethenumberofdollarsneededtopayforthesepurchases.TheinterestsoftheMexicancompanies,however,areexactlytheoppositeofthoseoftheU.S.company.IftheMexicancompaniesanticipateanincreaseintheexchangeratefortheU.S.dollar,theywillwanttobuyatpricesstatedinpesosandsellatpricesstatedindollars.Ultimately,themannerinwhichthetransactionswillbepricedsimplydependsonwhichcompanyisinthebetterbargainingposition.HedgingHedging

isusedtominimizeoreliminatetheriskoflossassociatedwithforeigncurrencyfluctuations.Itreferstothestrategyof“sittingonbothsidesofthefence”—thatis,oftakingoffsettingpositionssothatyourgainsandlossestendtooffsetoneanother.Futurecontractsaretherighttoreceiveaspecifiedquantityofforeigncurrencyatafuturedate.YourTurn:ConsumerAssumeyouareinthemarketforanewracingbicycle.YouareconsideringbuyinganItalian,British,orU.S.racingbicycle.YouhaverecentlyheardthatthedollarisstrengtheningagainsttheeuroandisfallingagainsttheBritishpound.Thesetrendsareexpectedtocontinueforanothermonth.Howwouldthisnewsaffectyourassessmentofchoicesamongracingbicycles?GlobalSourcingDifferencesinexchangeratesinmanydifferentcountriescancreatesignificantcomplexitiesforfirmspracticingglobalsourcing.Manycompaniesunderestimatethecostofglobalizingtheirbusinessoperationsbecausetheyarenotfamiliarwithavarietyofenvironmentalcharacteristicsthatcanimpactthebusiness.Makingaccurateestimatesofcostsforglobalsourcingisachallengeforcompanieswishingtobecomemoreglobal.GlobalSourcingExample:MattelEstimatedProductCostforBarbieDollsForeignCorruptPracticesActPassedin1977andamendedin1988and1998bytheU.S.Congress.Prescribesfinesandjailtimeformanagersviolatingitsrules.U.S.-basedbusinessesareprohibitedfrominfluencepeddling.TheInternationalMonetaryFundandtheWorldBankinstitutedpoliciesinthelate1990stocutofffundingtocountriesignoringcorruptpractices.UnderFCPArules,itisillegalforallU.S.companiesandforeigncompaniesoperatingintheUnitedStates,theiraffiliates,andtheiragentstobribeagovernmentofficial.YourTurn:HeadofInternationalAcquisitionsAssumeyouaretheheadofinternationalacquisitionsforalargemultinationaltoycompanytradedontheNewYorkStockExchange.YouhavebeeninvolvedforseveralmonthsinadealtoacquirealargefacilityinamidsizecityincentralChina.ThisbuildingwillberemodeledbyyourcompanytoproducearangeoftoyproductsfortheChinesemarket,andisexpectedtoincreaseyourcompany’ssales.Foravarietyofreasons,progresshasbeenextremelyslowoncompletingtheacquisition.Cityadministratorshavecontinuallydelayedissuingthenecessarypaperwork,anditiswithinthediscretionoftheseofficialswhethertoapprovethetransferofthefacilitytoacompanydomiciledinaforeigncountry.YoudecidetoflytoChinatomeetwiththecity’stopthreeofficials.Duringyourmeetingitbecomesclearthatthethreecityofficialswouldguaranteeprocessingtheassociatedpaperworkmuchfasterifyourcompanywouldprovideasignificantpaymenttoeachofthemindividuallytohelpexpeditethenecessarywork.TheseadministratorspointoutthataGermancompanythatacquiredafacilityinthecitythepreviousyearwaswillingtopayextratoexpeditepaperwork.YourCEOhasmadeitcleartoyouthattheChinaprojectisveryimportantandexpeditingitiscriticalforitslong-runsuccess.Whatshouldyoudo?LearningObjectiveSummaryLO15-1LO15-1:Definefourmechanismscompaniesusetoglobalizetheirbusinessactivities.

Companiesglobalizetheirbusinessactivitiesthroughexporting,licensing,jointventures,andwhollyownedsubsidiaries.Multinationalcompaniesuseaglobalsourcingapproach.LearningObjectiveSummaryLO15-2LO15-2:Identifyhowglobalenvironmentalforces—politicalandlegalsystems,economicsystems,culture,andtechnologyandinfrastructure—affectaccountingpractices.

Countriesusetheirpoliticalandlegalsystemstotransferandcontrolbusinessassets.Marketversuscentrallyplannedeconomicsystemscreatedifferentdemandsforfinancialreporting.Cultureinfluencesbusinessrelationshipsthroughbeliefsandexpectationsofcustomersandbusinessassociates.Thetechnologyandinfrastructureofeachgloballocationwillaffectthetypeandcostsofbusinessactivitiesandrelatedfinancialaccountingreports.Theseenvironmentalforcesinteractwitheachotherinaffectingaccountingpractices.LearningObjectiveSummaryLO15-3LO15-3:Explainwhythereisdemandforharmonizationofglobalfinancialreportingstandards.Cross-borderdifferencesinaccountingandreportingcreateanalysisandcomparabilityproblemsbetweenandamo