ACT 4435 International Accounting
Professor Burks,DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 1 Introduction to International Accounting
Learning Objectives – To focus on while reading the chapter.
1.How is international accounting distinct from domestic accounting?
2.What does international accounting diversity entail?
3.Does international accounting have a history?
4.What factors are contributing, to the importance of international accounting as a field of study?
5.What external and internal reporting issues arise when business and investing transcend national borders?
6.What is meant by the term, global capital markets, and what does development mean for capital market participants?
Chapter 1 Discussion Questions on pages 29 and 30:
1 6
311
4 12
Chapter 1 Exercises on pages 30 and 31:
210
812
9
Case 1- 2 Global Benchmarks on pages 33 and 34.
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 2 Development and Classification of Accounting
Learning Objectives – To focus on while reading the chapter.
1.Identify and understand the importance of the eight factors that have a significant influence on accounting development.
2.Understand the four approaches to accounting development found in market-oriented Westerneconomies and identify countries in which each approach is prevalent.
3.Have a basic working knowledge of accounting classifications and how they compare with one another.
4.Explain the difference between the “fair presentation” and “legal compliance” orientations of accounting and identify nations in which each is prevalent.
5.Explain why distinctions of accounting at the national level are becoming blurred.
Chapter 2 Discussion Questions on pages 47 and 48:
1 9
210
3 12
Chapter 2 Exercises on pages 48 through 50:
410
511
Case 2 – 1 Are Classifications of Accounting Outmoded? on pages 51 and 52
Case 2 – 2 Volkswagen Group on pages 52 through 54.
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 3 Comparative Accounting: Europe
Learning Objectives – To focus on while reading the chapter.
1.Understand how financial reporting is regulated and enforced in five European countries: France, Germany, the Czech Republic, the Netherlands, and the U.K.
2.Describe the key similarities and differences between the accounting systems of these five countries.
3.Identify the use of International Financial Reporting Standards at the levels of the individual company and the consolidated financial statements in these five countries.
4.Describe the audit-oversight mechanisms in these five countries.
Chapter 3 Discussion Questions on pages 85 and 86:
1 7
2 9
4 12
Chapter 3 Exercises on pages 86 and 87:
1 8
311
612
7
Case 3 – 2A What Difference Does It Really Make? on pages 89 through 105
Case 3 – 2B Do the Diffences Really Matter? on pages 106 through 114
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 4 Comparative Accounting: The Americas and Asia
Learning Objectives – To focus on while reading the chapter.
1.Understand how financial reporting is regulated and enforced in five countries of the Americas and Asia: the U.S., Mexico, Japan, China, and India.
2.Describe the key similarities and differences among the accounting systems of these five countries.
3.Describe the auditor-oversight mechanisms in these five countries.
4.Explain the difference between principles-based and rules-based accounting standards.
Chapter 4 Discussion Questions on pages 142 and 143:
1 6
2 7
3 10
Chapter 4 Exercises on pages 143 through 146:
110
211
612
Case 4 – 1 Standing on Principles on pages 147 and 148
Case 4 – 2 Casino Capital on pages 148 and 149
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 5 Reporting and Disclosure
Learning Objectives – To focus on while reading the chapter.
1.Distinguish voluntary and mandatory disclosure and the applicable regulatory measures.
2.Identify the broad objectives for accounting disclosure systems in investor-oriented equity markets.
3.Discuss “triple-bottom line” reporting and why it is a growing tendency among large multinational corporations.
4.Have a basic understanding of the following selected corporate financial-disclosure practices:
(a) disclosures of forward-looking information,
(b) segment disclosures,
(c) social responsibility reporting,
(d) special disclosures for non-domestic financial statement users, and
(e) corporate governance disclosures.
Chapter 5 Discussion Questions on page 192:
1 6
2 9
412
Chapter 5 Exercises on pages 192 through 194:
1 8
3 9
611
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 6 Foreign Currency Translation
Learning Objectives – To focus on while reading the chapter.
1.Why do firms translate from one currency to another?
2.What is the difference between a spot, forward, and swap transaction?
3.What exchange rates are used in the currency translation process and what are their financial statement effects?
4.How does a translation gain or loss differ from a transactions gain or loss?
5.Is there more than one way of translating financial statements from one currency to another? If so, what are they?
6.How does the temporal method of currency translation differ from the current rate method?
7.What is the relationship between currency translation and inflation?
Chapter 6 Discussion Questions on pages 233 and 234:
1 7
2 8
312
5
Chapter 6 Exercises on pages 234 through 236:
1 8
3 9
510
7
Case 6 – 1 Regents Corporation on pages 238 and 239
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 7 Financial Reporting and Changing Prices
Learning Objectives – To focus on while reading the chapter.
1.What do we mean by the term, changing prices?
2.Why are financial statements misleading during periods of changing prices?
3.What are the various ways of adjusting financial statements for changing prices?
4.Do adjustments for changing prices vary internationally?
5.What does IAS 21 have to say about inflation adjustments in hyperinflationary countries?
6.What is the restate-translate controversy all about?
7.Is it possible to double-count for the effects of foreign inflation?
Chapter 7 Discussion Questions on pages 274 and 275:
110
211
712
8
Chapter 7 Exercises on pages 275 through 278:
2 6
3 7
411
512
Case 7 – 1 Kashmir Enterprises on page 279.
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 8 Global Accounting and Auditing Standards
Learning Objectives – To focus on while reading the chapter.
1.Define and understand the distinction between “harmonization” and “convergence” as they apply to accounting standards.
2.State the pros and cons of adopting international accounting standards.
3.Understand what is meant by “reconciliation” and “mutual recognition” of different sets of accounting standards.
4.Identify the six organizations that have leading roles in setting international accounting standards and promoting international accounting convergence.
5.Describe the structure of the International Accounting Standards Board and how it sets International Financial Reporting Standards.
6.Understand the major provisions of the U.S. Sarbanes-Oxley Act and why similar legislation is being enacted in other countries.
Chapter 8 Discussion Questions on page 308:
2 7
3 8
410
611
Chapter 8 Exercises on pages 308 through 311:
1 8
211
412
6
Case 8 – 2 Whither the Withering Standard Setters on pages 312 & 313.
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 9 International Financial Statement Analysis
Learning Objectives – To focus on while reading the chapter.
1.What is a logical approach to analyzing foreign financial statements?
2.Why is it difficult to undertake an international business strategy analysis?
3.What are some steps to examining foreign accounting practices?
4.How do cross-country variations in accounting measurements, disclosure practices, and auditing standards impact one’s analysis of foreign financial statements?
5.How can you cope with differences in national accounting measurement practices?
6.What does international prospective analysis entail and why is it difficult to perform in an international setting?
7.What are some pitfalls to avoid when conducting cross-country ratio analysis?
Chapter 9 Discussion Questions on pages 356 & 357:
1 7
2 8
6 9
Chapter 9 Exercises on pages 357 through 361:
1 6
2 7
310
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 10 Managerial Planning and Control
Learning Objectives – To focus on while reading the chapter.
1.What are the critical dimensions of business modeling?
2.What is involved in measuring the returns on a foreign investment. How does it differ from the domestic case?
3.How does one calculate a multinational company’s cost of capital?
4.Are there any issues involved in designing multinational information and control systems?
5.What is financial control and what are some international control issues?
6.How does Kaizen costing differ from traditional standard costing concepts?
7.What is involved in an exchange rate variance analysis?
8.What issues do managers face in evaluating their foreign operations?
9.What are some approaches employed by multinational companies to cope with exchange rate changes and inflation in performance evaluation of foreign operations?
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 11 Financial Risk Management
Learning Objectives – To focus on while reading the chapter.
1.What does risk management entail?
2.What are the various types of market risks that international financial managers encounter?
3.Identify four tasks involved in managing foreign exchange risk.
4.How does translation exposure differ from transaction exposure?
5.What is a financial derivative and how is it measured?
6.Identify three types of foreign currency hedges and their accounting treatments recommended by IAS 39 and FAS 133.
ACT 4435 International Accounting
Professor Burks, DBA, CPA
Textbook Assignments
International Accounting, Seventh Edition, Choi and Meek (2011)
Chapter 12 International Taxation and Transfer Pricing
Learning Objectives – To focus on while reading the chapter.
1.Identify the major types of tax systems that exist around the world.
2.Understand what determines a multinational entity’s effective tax burden.
3.Understand concepts relating to the taxation of foreign source income and the rationale behind the foreign tax credit.
4.Identify the major variables that complicate international transfer pricing.
5.Explain the meaning of arm’s-length price and the transfer pricing methods designed to achieve it.
6.Explain the concept of an advance pricing arrangement.
Chapter 12 Discussion Questions on pages 497 & 498:
2 9
510
8
Chapter 12 Exercises on pages 498 through 500:
1 8
2 9
410
7