International Accounting
5th Edition
ISBN: 9781259747984
Author: Doupnik, Timothy S., Finn, Mark T., Gotti, Giorgio
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 2, Problem 3EP
Using their most recent annual reports, access the financial statements of two foreign companies located in the same country to complete this assignment.
Required:
- a. Determine the GAAP the two foreign companies use to prepare financial statements.
- b. Determine whether the financial statements provided by the two foreign companies include the same components (e.g., consolidated
balance sheet , consolidated income statement, consolidatedcash flows statement, and so on). - c. List any format differences (up to five) in the companies’ income statements.
- d. List any format differences (up to five) in the companies’ balance sheets.
- e. Note any terminology differences (up to five) that exist between the two companies’ income statements and balance sheets.
- f. In very general terms, assess whether the scope and content of the information provided in the notes to the financial statements is similar between the two companies.
- g. Provide your overall impression (no detail) of how the two companies’ sets of financial statements compare.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which translation method results in a set of financial statements as if the foreign subsidiary’s transactions were carried out in US dollars?
Current rate method
Temporal method
Required:
a. Prepare a schedule translating the December 31 20X1, trial balance from swiss francs to dollar.
b. Where is the translation adjustment reported on popular Creek's consolidated financial Statement and its foreign Sibsidiary?
Required:
1. Calculate the exchange gain or loss to be reported in 20X7. (Do not round intermediate calculations.)
2. Calculate the accounts receivable on the 31 December 20X7 statement of financial position.
3. Calculate the sales revenue to be recorded from the transactions listed above.
Thumb up if you have the correct answer! Thanks
Chapter 2 Solutions
International Accounting
Ch. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - 3. How does the relationship between financial...Ch. 2 - 4. Who are the major providers of capital...Ch. 2 - Prob. 5QCh. 2 - According to Gray, how does national culture...Ch. 2 - Prob. 7QCh. 2 - 8. How are the Anglo and less developed Latin...Ch. 2 - Prob. 9QCh. 2 - 5. What are the major problems caused by worldwide...
Ch. 2 - 6. What are the major problems caused by worldwide...Ch. 2 - According to Nobess simplified model of accounting...Ch. 2 - In what way does Nobess simplified model of...Ch. 2 - Prob. 14QCh. 2 - 11. How are the various costs that comprise cost...Ch. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 1EPCh. 2 - Prob. 2EPCh. 2 - Using their most recent annual reports, access the...Ch. 2 - 4. Cultural dimension index scores developed by...Ch. 2 - 5. Refer to Nobes’s judgmental classification of...Ch. 2 - Prob. 6EPCh. 2 - Prob. 7EPCh. 2 - 8. Various attempts have been made to reduce the...Ch. 2 - Prob. 9EPCh. 2 - Prob. 1CCh. 2 - Case 2-2
SKD Limited
SKD Limited is a...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Obtain the most recent annual reports for the company BP plc and British American Tobacco p.l.c . Examine the segmental disclosures provided in the segment notes of the annual reports of the two companies and comment on the following: i. Based on extracts from the segment notes, · how much and what segmental information is provided in the segment notes? · discuss whether the companies are in compliance with the relevant accounting standard, and · discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions. iii. Discuss the implications of your analysis and findings, such as policy implications.arrow_forwardQuestion Consider each of the following independent situations which have come to your attention. In each of the following independent and material situations assume that the client is a reporting entity and that a general-purpose financial report has been prepared and audited: Event 1: Part of Steel Limited's operations are in South America. Recent changes of government have made it impossible for you to verify the key accounts of inventory, fixed assets and cash and related income statement balances. Event 2: The management of Surf Limited's has refused to disclose a few, director related transactions on the grounds of commercial confidentiality. The financial controller reminds you that no other errors have been found in the financial report and states that the transactions are immaterial and therefore irrelevant to the users of the financial report. Event 3: The annual report of Ranger Limited includes a detailed graph showing revenue for the last 10 years. You note that there are…arrow_forwardForex: Translation and RemeasurementThe following assets are held by a subsidiary in a foreign country: 1. At what amount should be reported as total assets if the financial statement is to be translated as of Jan. 31?2. At what amount should be reported as total assets if the financial statement is to be remeasured as of Jan. 31?arrow_forward
- Based on the background example of this assignment, kindly provide answer/working of this assignment please. 1) The person in charge of the finances of the company MGT, S.A. wants to know the company's situation concerning the industrial sector to which it belongs. For this, it has the following information regarding the industry: a) General liquidity ratio is 1.55; the acid test is 1.20, and the ratio between the available and the current liabilities is 0.95. b)The debt ratio stands at 1.25. The margin on sales is 21%. The investment rotation is 1.45 times. c) Economic profitability is around 23%, and financial profitability is 29% The data referred to the company (in thousands of €) are the following: Assets Liability and Net Equity Non-current asset (net) 170 Equity 125 Stocks of finished products 45 Reservations 25 Clients 65 External Resources 105 Banks 70 Loans 65 Supplier 30 Total Assets 350 Total Net Equity…arrow_forwardThe FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on earnings per share using the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Identify the Codification topic number that provides the accounting for earnings per share. 2. What is the specific citation that describes the additional information for earnings per share that must be included in the notes to the financial statements? 3. Describe the required disclosures.arrow_forwardIn accordance with U.S. generally accepted accounting principles, which translation combination is appropriate for a foreign operation whose functional currency is the U.S. dollar? Choose the correct option. Method Treatmemt of transition adjustment a. Current rate other comprehensive income b. Current rate Gain or loss in net income c. Temporal other comprehensive income d. Temporal Gain or loss in net incomearrow_forward
- Siemens AG, a German company, is Europe’s largest engineering and electronics company. The company prepares its financial statements according to IFRS. Required: 1. Use the Internet to locate the most recent financial report for Siemens. The address is www.siemens.com. Locate the significant accounting policies disclosure note. 2. How does the company account for research and development expenditures? Does this policy differ from U.S. GAAP?arrow_forwardLooking for help with these two questions. 1. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian subsidiary in its functional currency, Canadian dollars.2. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements.arrow_forwardConsider each of the following independent situations which have come to your attention. Ineach of the following independent and material situations assumes that the client is areporting entity and that a general-purpose financial report has been prepared and audited:Event 1: Part of Steel Limited's operations are in South America. Recent changes inthe government have made it impossible for you to verify the key accounts of inventory, fixedassets and cash and related income statement balances. Event 2: The management of Surf Limited's has refused to disclose a few, director relatedtransactions on the grounds of commercial confidentiality. The financial controller remindsyou that no other errors have been found in the financial report and states that thetransactions are immaterial and therefore irrelevant to the users of the financial report. Event 3: The annual report of Ranger Limited includes a detailed graph showing revenue forthe last 10 years. You note that there are some…arrow_forward
- Consider each of the following independent situations which have come to your attention. Ineach of the following independent and material situations assume that the client is areporting entity and that a general-purpose financial report has been prepared and audited:Event 1: Part of Steel Limited's operations are in South America. Recent changes ofgovernment have made it impossible for you to verify the key accounts of inventory, fixedassets and cash and related income statement balances(50 -80 words)Event 2: The management of Surf Limited's has refused to disclose a few, director relatedtransactions on the grounds of commercial confidentiality. The financial controller remindsyou that no other errors have been found in the financial report and states that thetransactions are immaterial and therefore irrelevant to the users of the financial report. (50 -80 words)Event 3: The annual report of Ranger Limited includes a detailed graph showing revenue forthe last 10 years. You note that…arrow_forwardConsider each of the following independent situations which have come to your attention. Ineach of the following independent and material situations assume that the client is areporting entity and that a general-purpose financial report has been prepared and audited:Event 1: Part of Steel Limited's operations are in South America. Recent changes ofgovernment have made it impossible for you to verify the key accounts of inventory, fixedassets and cash and related income statement balances. (50 -80 words)Event 2: The management of Surf Limited's has refused to disclose a few, director relatedtransactions on the grounds of commercial confidentiality. The financial controller remindsyou that no other errors have been found in the financial report and states that thetransactions are immaterial and therefore irrelevant to the users of the financial report. (50 -80 words)Event 3: The annual report of Ranger Limited includes a detailed graph showing revenue forthe last 10 years. You note that…arrow_forwardConsider each of the following independent situations which have come to your attention. In each of the following independent and material situations assume that the client is a reporting entity and that a general-purpose financial report has been prepared and audited: Event 1: Part of Steel Limited's operations is in South America. Recent changes of government have made it impossible for you to verify the key accounts of inventory, fixed assets and cash and related income statement balances. Event 2: The management of Surf Limited's has refused to disclose a few, director related transactions on the grounds of commercial confidentiality. The financial controller reminds you that no other errors have been found in the financial report and states that the transactions are immaterial and therefore irrelevant to the users of the financial report. Event 3: The annual report of Ranger Limited includes a detailed graph showing revenue for the last 10 years. You note that there are some…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Business Diversification; Author: GreggU;https://www.youtube.com/watch?v=50-d__Pn_Ac;License: Standard Youtube License