Ch1.pptx - Ch 1 Introduction to International Accounting...

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1-1 Learning Objectives 1. Understand the nature and scope of international accounting. 2. Describe accounting issues created by international trade. 3. Explain reasons for, and accounting issues associated with, foreign direct investment (FDI). 4. Describe the practice of cross-listing on foreign stock exchanges. cross-listing 指的是 股票跨国交叉上市) 5. Explain the notion of global accounting standards. 6. Examine the importance of international trade, FDI, and multinational corporations (MNCs) in the global economy. Ch. 1 Introduction to International Accounting 1
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1-2 International Accounting can be defined at three different levels: 1. Supranational level 2. Company level. currency issues, gaap 3. International accounting standards What is International Accounting? 2
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1-3 Sale to foreign customer and foreign exchange risk On February 1, 2014, Joe Inc., a U.S. company, makes a sale and ships goods to Jose, SA, a Mexican customer, for $100,000 (U.S.). However, it is agreed that Jose will pay in pesos on March 2, 2014. The exchange ( spot ) rate as of February 1, 2014 is U.S.$1 = 10 pesos. How many pesos does Jose agree to pay? 1000000 How does Joe record the sale? 100 k Us dollars Suppose that on March 2, 2014, the exchange rate for pesos is U.S.$1=11 pesos. Joe Inc. will receive 1,000,000 pesos, which are now worth
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  • Spring '14
  • AlisonJ.Iavarone

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