ADholakiya - AC558 Unit 1 Assignment
.docx
keyboard_arrow_up
School
Purdue Global University *
*We aren’t endorsed by this school
Course
AC558
Subject
Accounting
Date
Jan 9, 2024
Type
docx
Pages
5
Uploaded by AdmiralGullPerson519 on coursehero.com
AC558 International Accounting Standards and Global Financing Report
Professor - David Adu-Boateng
Unit 1 - Assignment
Aneri Dholakiya 9/26/23
1. The New York Stock Exchange (NYSE) provides a list of non-U.S. companies listed on the exchange on its website www.nyse.com
). (Hint: Search the Internet for “NYSE List of Non-U.S. Listed Issuers.”)
A.
There are over 530 international companies that are listed on the NYSE and 45 countries are represented B.
Five countries with the largest number of foreign companies are Canada, United Kingdom, China, Brazil and Bermuda. C.
Companies are going to the extent of having their companies' shares listed on the NYSE because it gives the investors a sense of trust and provides transparency. It also provides the non-US companies additional capital and can increase their liquidity. The countries can also get access to a larger capital market for having their companies listed on NYSE.
(International Listings, n.d)
2. The various international accounting issues confronted by Besserbrau AG are exchange rates, tax variances, multiple compliance and standards, preparing consolidated financial statements, and tracking expenses and reports. Since the Besserbrau exports their products to China, the products will be sold to the foreign customers and therefore different currencies. So the company will have to translate China's currency (Yuan) into German currency (EURO). There will be different taxation rules and regulations, the company will have to follow those regulations and will have to consolidate the financials when the company is trying to consolidate and prepare the statements. There can be double taxation so they will have to make sure they know the rules and regulations for double taxation relief programs in each country. They will face issues with currency exchange rate which can fluctuate in the future. They will have to determine price according to the government regulation in the country and the capital market. To have an established company in China will take time for Besserbrau. They will have to establish effective controls over the operations and evaluate the performance of the company and
the management for the company's growth and its success. (Doupnik et al., 2019)
3. The two companies I choose are Cravana Co. (CVNA) and Tata Motor Ltd.
As far as the accounting principles for the domestic company, the company is responsible for providing the reports on the cash flow, operation and financials. There are 3 major financial statements required under GAAP: income statement, balance sheet and cash flow statement. The foreign company Tata Motor uses Indian Accounting Standards (IndAS). As far as the financial reports, there should be a minimum of balance sheets, statements of profit and loss, statements of
cash flows and statements of change in equity and related notes. List five format differences in the companies’ income statements.
1.
Different way of presenting the revenue and expenses
2.
Different way on how operating expenses are classified 3.
Different way in presenting non-operating income and expenses 4.
Different way of presenting taxes
5.
Extra items are treated differently
List five format differences in the companies’ balance sheets.
1.
Assets and liabilities are classified differently
2.
long -term and short-term are presented differently 3.
Deferred taxes are treated different 4.
Minority interests are presented different
5.
Goodwill and intangible assets are treated differently.
There are terminology differences between the income statement and balance sheet. Some of the terminology differences I noticed were sales vs revenue and long-term liabilities vs non-current liabilities.
Majority of the information provided on both companies' financial statements are similar. The note provided additional information about policies, expenses or contingencies. However, IndAS
had more detailed information in the reports and the notes. To compare the overall presentation of the financial statements and notes to financial statements between the two companies, we would need to examine the layout and formatting of the financial statements. The US GAAP income statement is based on text only vs the IndAS includes graphics, more color and the information is broken down in sections with additional notes per section.
4. In what way does Nobe’s simplified model of accounting diversity appear to explain accounting developments that have occurred in Europe over the past three decades?
Nobe’s simplified model of accounting diversity simplified the reason for international accounting diversity and the financing system. The reason why he simplified the accounting system is so that the common people can understand and realize the value, importance and have knowledge of accounting and finance. (Doupnik et al., 2019)
5. The Impact of Culture on Conservatism
PART I
In Gray’s mode, the culture of the country impact’s the accounting values which also impacts the
rules and regulation. The way finances are reported and how they are practiced will also be impacted. If there are no cultural differences, the financial rules and regulations should not change from country to country. The company’s finances are based on the overall economy of the country. The economy of the country is based on the culture and its values. PART II
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
52
NOVEMBER 2023 /FIN2203/FIN2063/FIN301 ASSIGNMENT You are required to: i. Select THREE(3) companies in different industries, listed under Bursa Malaysia, and make sure each company that you choose used different policies. Download any financial statement that is relevant for you for this assignment. ii. For each of the company, please identify the following: Permanent Asset Temporary Current Asset Permanent Sources of financing Temporary Sources of financing Spontaneuos Sources of financing iii. From the statements, justify your answer on working capital financing policies adopted by each company. Explain. iv. Assess for each of the companies's: a) Operating cycle. b) Cash conversion cycle. c) Annual savings if the operating cycle is reduced by 10 days.
arrow_forward
MULTIPLE CHOICE QUESTIONS: (A1&D3)
General-purpose financial statements are the product of
financial accounting.
managerial accounting.
both financial and managerial accounting.
neither financial nor managerial accounting.
Users of financial reports include all of the following except
creditors.
government agencies.
unions.
All of these are users.
The purpose of the International Accounting Standards Board is to
issue enforceable standards which regulate the financial accounting and reporting of multinational corporations.
develop a uniform currency in which the financial transactions of companies through-out the world would be measured.
promote uniform accounting standards among countries of the world.
arbitrate accounting disputes between auditors and international companies
arrow_forward
1. Add Allowance for Doubtful Accounts of $50, Accumulated Depreciation of $3450, and Treasury Stock of $450. Add the necessary formatting for a U.S. public company's external financial statement including the necessary underlines.
arrow_forward
Question 2
The following balances were extracted from the relevant books of accounts of the Controller and Accountant General Department at the end of December, 2019
Trail Balance as at 31 December, 2019
GHS
GHS
Foreign Investment
64,780.50
Taxes on Domestic Goods
40,000.00
Taxes on International Transactions
94,500.00
Personal Emoluments
160,000.00
Domestic Short Term Loan
6,750.00
Domestic medium and loan term loan
42,750.00
SSF Contribution
21,200.00
Pension and Gratuity
18,300.00
Taxes on Income & Properties
155,600.00
Contingency Fund
67.50
Local Investment
5,750.00
Value Added Tax
142,300.00
Administrative Expenses
100,000.00
Education Trust Fund
14,300.00
Sinking Fund
337.50
Road Fund…
arrow_forward
Assignment for ACG3111
This is the problem:
The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:
Assets:
Investments in IBM common shares 1,845,000
Less: Fair Value Adjustment (195,000)
1,650,000
No changes occurred during 2018 in the investment portfolio.
Prepare appropriate adjusting entries at Dec 31, 2018, assuming that the values of the common share were:
1,315,000
My question is if this problem is relating to an AFS security, the unrealized holding loss on AFS investment would be debited to OCI instead of NI.
However, when I did my homework, it seems that the correct answer is unrealized holding loss on AFS investment - NI. Could you tell me the explanation behind this answer, please?
arrow_forward
11)
QBG Geojit Securities LLC, licensed by the Capital Market Authority as a Financial Intermediary buying securities from issuing companies and issue to public. What is the “process”called in financial system?
a.
Direct process
b.
All
c.
Factoring process
d.
Intermediary Process
arrow_forward
M7 Q7
The following table contains current asset and current liability balances for Microsoft Corporation (MSFT):
ATTACHED
a. Assume that you are the lead banker for the syndicate of banks that manage Microsoft Corporation's line of credit. Your boss has asked that you report to him on the current state of Microsoft's liquidity. How would you describe the liquidity of Microsoft in 2013?
b. Have there been recent changes in Microsoft's liquidity? If so, have the changes been to improve the firm's liquidity? Explain your observations.
arrow_forward
block c/2019/1/2
How long does a company obliged to prepare accounts in accordance with the German Commercial Code (HGB) have to keep an opening balance sheet?
What are accounts receivable ?
What does the active or active or active person inform about? Liabilities side of a balance sheet? How can I determine the annual result in the balance sheet?
arrow_forward
Q39
Statement I: The objective of financial reporting is to provide insider information about the reporting entity. Statement II: The insider information provided about the reporting entity is useful only to international investors and lenders in making decisions about providing resources to the entity.
a.
Neither statement I is true nor statement II is true
b.
Only statement I is true
c.
Only statement II is true
d.
Statement I only false but statement II is true
arrow_forward
[6:00 pm, 28/04/2021] +92 302 2797988: Q.No.2
What journal entries Punjab Corporation is made in the following cases. Also, prepare a balance sheet for each. You are also required to pass the journal entries following cases with total debentures are 4221 (total no. of debentures) and $100 each 6% debenture.
(a) A company issued $ 500,000 6% debenture at par redeemable at par.
(b) A company issued $ 500,000 6% debenture at 10% discount redeemable at par.
(c) A company issued $ 500,000 6% debenture at 5% premium redeemable at par.
(d) A company issued $ 500,000 6% debenture at par redeemable at 10% premium.
(e) A company issued $ 500,000 6% debenture at 10% discount redeemable at 5% premium.
arrow_forward
https://massygroup.com/wp-content/uploads/2022/11/MASSY-DIGITAL-ANNUALREPORT-2022 (answer the following questions) Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide. b) Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.) c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.
arrow_forward
27
Assume that the Accounts receivables, notes receivables, cash balance and inventory of the company is OMR 500, OMR 700,OMR 600 and OMR 700 respectively. The equity and total liabilities are OMR 2000 and OMR7000 respectively. From the following given options identify the fixed assets of the company.
a.
OMR 2500
b.
None of the given options
c.
OMR 9000
d.
OMR 6500
Clear my choice
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Related Questions
- 52 NOVEMBER 2023 /FIN2203/FIN2063/FIN301 ASSIGNMENT You are required to: i. Select THREE(3) companies in different industries, listed under Bursa Malaysia, and make sure each company that you choose used different policies. Download any financial statement that is relevant for you for this assignment. ii. For each of the company, please identify the following: Permanent Asset Temporary Current Asset Permanent Sources of financing Temporary Sources of financing Spontaneuos Sources of financing iii. From the statements, justify your answer on working capital financing policies adopted by each company. Explain. iv. Assess for each of the companies's: a) Operating cycle. b) Cash conversion cycle. c) Annual savings if the operating cycle is reduced by 10 days.arrow_forwardMULTIPLE CHOICE QUESTIONS: (A1&D3) General-purpose financial statements are the product of financial accounting. managerial accounting. both financial and managerial accounting. neither financial nor managerial accounting. Users of financial reports include all of the following except creditors. government agencies. unions. All of these are users. The purpose of the International Accounting Standards Board is to issue enforceable standards which regulate the financial accounting and reporting of multinational corporations. develop a uniform currency in which the financial transactions of companies through-out the world would be measured. promote uniform accounting standards among countries of the world. arbitrate accounting disputes between auditors and international companiesarrow_forward1. Add Allowance for Doubtful Accounts of $50, Accumulated Depreciation of $3450, and Treasury Stock of $450. Add the necessary formatting for a U.S. public company's external financial statement including the necessary underlines.arrow_forward
- Question 2 The following balances were extracted from the relevant books of accounts of the Controller and Accountant General Department at the end of December, 2019 Trail Balance as at 31 December, 2019 GHS GHS Foreign Investment 64,780.50 Taxes on Domestic Goods 40,000.00 Taxes on International Transactions 94,500.00 Personal Emoluments 160,000.00 Domestic Short Term Loan 6,750.00 Domestic medium and loan term loan 42,750.00 SSF Contribution 21,200.00 Pension and Gratuity 18,300.00 Taxes on Income & Properties 155,600.00 Contingency Fund 67.50 Local Investment 5,750.00 Value Added Tax 142,300.00 Administrative Expenses 100,000.00 Education Trust Fund 14,300.00 Sinking Fund 337.50 Road Fund…arrow_forwardAssignment for ACG3111 This is the problem: The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following: Assets: Investments in IBM common shares 1,845,000 Less: Fair Value Adjustment (195,000) 1,650,000 No changes occurred during 2018 in the investment portfolio. Prepare appropriate adjusting entries at Dec 31, 2018, assuming that the values of the common share were: 1,315,000 My question is if this problem is relating to an AFS security, the unrealized holding loss on AFS investment would be debited to OCI instead of NI. However, when I did my homework, it seems that the correct answer is unrealized holding loss on AFS investment - NI. Could you tell me the explanation behind this answer, please?arrow_forward11) QBG Geojit Securities LLC, licensed by the Capital Market Authority as a Financial Intermediary buying securities from issuing companies and issue to public. What is the “process”called in financial system? a. Direct process b. All c. Factoring process d. Intermediary Processarrow_forward
- M7 Q7 The following table contains current asset and current liability balances for Microsoft Corporation (MSFT): ATTACHED a. Assume that you are the lead banker for the syndicate of banks that manage Microsoft Corporation's line of credit. Your boss has asked that you report to him on the current state of Microsoft's liquidity. How would you describe the liquidity of Microsoft in 2013? b. Have there been recent changes in Microsoft's liquidity? If so, have the changes been to improve the firm's liquidity? Explain your observations.arrow_forwardblock c/2019/1/2 How long does a company obliged to prepare accounts in accordance with the German Commercial Code (HGB) have to keep an opening balance sheet? What are accounts receivable ? What does the active or active or active person inform about? Liabilities side of a balance sheet? How can I determine the annual result in the balance sheet?arrow_forwardQ39 Statement I: The objective of financial reporting is to provide insider information about the reporting entity. Statement II: The insider information provided about the reporting entity is useful only to international investors and lenders in making decisions about providing resources to the entity. a. Neither statement I is true nor statement II is true b. Only statement I is true c. Only statement II is true d. Statement I only false but statement II is truearrow_forward
- [6:00 pm, 28/04/2021] +92 302 2797988: Q.No.2 What journal entries Punjab Corporation is made in the following cases. Also, prepare a balance sheet for each. You are also required to pass the journal entries following cases with total debentures are 4221 (total no. of debentures) and $100 each 6% debenture. (a) A company issued $ 500,000 6% debenture at par redeemable at par. (b) A company issued $ 500,000 6% debenture at 10% discount redeemable at par. (c) A company issued $ 500,000 6% debenture at 5% premium redeemable at par. (d) A company issued $ 500,000 6% debenture at par redeemable at 10% premium. (e) A company issued $ 500,000 6% debenture at 10% discount redeemable at 5% premium.arrow_forwardhttps://massygroup.com/wp-content/uploads/2022/11/MASSY-DIGITAL-ANNUALREPORT-2022 (answer the following questions) Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide. b) Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.) c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.arrow_forward27 Assume that the Accounts receivables, notes receivables, cash balance and inventory of the company is OMR 500, OMR 700,OMR 600 and OMR 700 respectively. The equity and total liabilities are OMR 2000 and OMR7000 respectively. From the following given options identify the fixed assets of the company. a. OMR 2500 b. None of the given options c. OMR 9000 d. OMR 6500 Clear my choicearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningAccounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning