1 - T Suzanne works for a large multinational company IBN Limited(IBN IBNs shares are traded on the two stock exchanges The company has operations

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

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

View Full DocumentRight Arrow Icon
T Suzanne works for a large multinational company, IBN Limited (IBN). IBN’s shares are traded on the two stock exchanges. The company has operations in six countries and sells its product around the world. Suzanne’s friend Joel owns and operates a rare-book store that specializes in comics. Joel started his business with his personal savings and has an outstanding bank loan that he uses to finance his inventory. Required Explain how the objectives of financial reporting would be different for IBN and Joel’s bookstore. IBN’s listing on the public stock exchanges will require an unqualified audit opinion. As a result, GAAP is a constraint for the company. However, IBN will try to adopt accounting policies that are acceptable in both of the countries in which it is traded to reduce recordkeeping and reporting costs. IBN will be most concerned about stewardship reporting. Its creditors and shareholders will be interested in cash flow prediction and performance evaluation. IBN’s management will want to maximize
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2012 for the course ACCOUNTING 1204 taught by Professor Chang during the Spring '11 term at Nanjing University.

Page1 / 5

1 - T Suzanne works for a large multinational company IBN Limited(IBN IBNs shares are traded on the two stock exchanges The company has operations

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online