1322754822_247__330G%252BWeek%252B13%252Bslides

1322754822_247__330G%252BWeek%252B13%252Bslides - Week 13...

Info iconThis preview shows pages 1–17. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 13: international accounting & finance 12/05/11 330G 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
12/05/11 330G Functional divisions under the MNE CFO 2
Background image of page 2
12/05/11 330G What the controller controls, 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
12/05/11 330G What the treasurer does, 4
Background image of page 4
Overall, -- a controller is responsible for the accounting function in an MNE, evaluates the financial results of business operations, collects and analyze data for internal and external financial decision makers -- a treasurer is responsible for the finance function in an MNE, writes checks, controls the company’s cash payments 12/05/11 330G 5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accounting in International Business 12/05/11 330G 6
Background image of page 6
Accounting for international differences: Financial statements differ from one country to another in six major ways: language currency type of statement (balance sheet, income statement, etc.) format extent of footnote disclosures underlying GAAPs on which statements are based 12/05/11 330G 7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accounting for international differences: -- format and content of financial statements are different in different countries, e.g., balance sheets for US and EU companies: Balance format in the US : assets = liabilities + shareholders’ equity Analytical format in the EU : fixed assets + current assets – noncurrent liabilities = capital and reserves 12/05/11 330G 8
Background image of page 8
Private-sector accounting standards: -- Financial Accounting Standards Board (FASB) : establishes accounting standards in the US -- International Accounting Standards Board (IASB): sets standards that can be used worldwide 12/05/11 330G 9
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
12/05/11 330G Environmental influences on accounting practices: -- international influence -- government -- academics -- accounting professionals -- local environment -- firm features -- industry -- other external factors, e.g., investors, creditors 10
Background image of page 10
Environmental Influences on Accounting Practices 12/05/11 330G 11
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cultural Differences in Accounting Secrecy and transparency: the degree to which firms disclose information to the public Optimism and conservatism: the degree of caution that firms display in valuing assets and recognizing income Culture influences: measurement practices , i.e., the methods of valuing of assets disclosure practices , i.e., the presentation of information and the discussion of results While Anglo-Saxon countries such as the U.K. and the U.S. have accounting systems that tend to be transparent and optimistic, Germanic and Latin countries tend to be secretive and conservative. 12/05/11 330G 12
Background image of page 12
Cultural Differences in Measurement and Disclosure for Accounting Systems 12/05/11 330G 13
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Classification of Accounting Systems of Developed Western Nations 12/05/11 330G 14
Background image of page 14
Classification According to Strong and Weak Equity Market Orientation 12/05/11 330G 15
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon