Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Question
Chapter 9, Problem 3.2E
To determine
Accounting principles:
Accounting principles are those baselines on which accounts are based on whereas disclosure requirements means management has not omitted informative disclosures in the F/S.
Differences in accounting principles and the disclosure requirements can have a competitive disadvantage to American Business.
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Students have asked these similar questions
2.Explain the environmental factors that lead to national differences in accounting.
3.What are the two main legal systems operating worldwide? How might these affect accounting?
Countries that rely on capital markets for finance, as opposed to banks and governments, are likely to expect greater levels of public disclosure in their accounting systems. Evaluate this argument and provide examples.
5.Outline and discuss three cultural aspects that can differ across countries. How do these cultural differences relate to differences in accounting systems?
6.What does accounting harmonisation mean? Differentiate harmonisation from convergence or adoption.
7.Explain the benefits of global adoption of IFRSs.
8. Outline the key challenges of US GAAP and IFRS convergence.
What is the disadvantage of international accounting ?
Select one :
a . uniformity practice b . Harmonization c . Mobilising global resources d . Market risk
1.Outline and differentiate the various definitions of international accounting?
2.Explain the environmental factors that lead to national differences in accounting?
3.What are the two main legal systems operating worldwide? How might these affect accounting?
4.Countries that rely on capital markets for finance, as opposed to banks and governments, are likely to expect greater levels of public disclosure in their accounting systems. Evaluate this argument and provide examples.
Chapter 9 Solutions
Advanced Accounting
Ch. 9.M - Prob. 1UTICh. 9.M - Prob. 2UTICh. 9.M - Prob. 3UTICh. 9.M - Prob. 4UTICh. 9.M - Prob. 5UTICh. 9.M - Prob. 1ECh. 9.M - Prob. 2ECh. 9.M - Prob. 3ECh. 9.M - Prob. 4.1ECh. 9.M - Prob. 4.2E
Ch. 9.M - Prob. 4.3ECh. 9.M - Prob. 4.4ECh. 9.M - Prob. 4.5ECh. 9.M - Prob. 4.6ECh. 9.M - Prob. 5ECh. 9.M - Prob. 6.1ECh. 9.M - Prob. 6.2ECh. 9.M - Prob. 7ECh. 9.M - Prob. M.1.1PCh. 9.M - Prob. M.1.2PCh. 9.M - Prob. M.2.1PCh. 9.M - Prob. M.2.2PCh. 9.M - Prob. M.3PCh. 9.M - Prob. M.4.3PCh. 9.M - Prob. M.4.4PCh. 9.M - Prob. M.4.5PCh. 9.M - Prob. M.4.6PCh. 9.M - Prob. M.5PCh. 9.M - Prob. M.6PCh. 9.M - Prob. M.7.1PCh. 9.M - Prob. M.7.2PCh. 9.M - Prob. M.7.3PCh. 9 - Prob. 1UTICh. 9 - Prob. 2UTICh. 9 - Prob. 3UTICh. 9 - Prob. 1.1ECh. 9 - Prob. 1.2ECh. 9 - Exercise 2 (LO 3) The accounting issues associated...Ch. 9 - Prob. 3.1ECh. 9 - Prob. 3.2ECh. 9 - Prob. 3.3ECh. 9 - Prob. 4.1ECh. 9 - Prob. 4.2E
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- A4) Finance When companies decide to establish themselves in a specific market, they can experience a variety of barriers to entry, Assess the various types of trade restrictions that may affect the international business?arrow_forward1.Why do different countries have different accounting standards? Explain your answer withsuitable example.2. What are the advantages of a single set of international accounting standards?arrow_forward1. What impact would harmonization of national accounting standards have on international businesses? 2. Are U.S. firms at a competitive disadvantage because they cannot use accounting reserves as German firms do?arrow_forward
- Which factor explaining why accounting practices differ across countries do you think is most important? Explain why.arrow_forwardQUESTION B Which of the following is NOT a factor direct investors look at when judging whether they will be able to operate in a foreign country? CA Trade policy and privatization policy. OB CC The functioning and efficiency of local markets. The quality of domestic accountability systems. Standards of treatment of foreign affiliates. OD.arrow_forwardWhich of the following is not a problem caused by diversity in accounting practices across countries? Multiple Choice Comparing companies in the same industry that are headquartered in different countries. Translating foreign currency balances into U.S. dollars. Converting local GAAP financial statements into U.S. GAAP for consolidation purposes. Maintaining separate accounting records in both the local and U.S. GAAP. Identifying and retaining personnel who are competent to prepare financial statements in both international and domestic accounting standards.arrow_forward
- Question #1 – What is the ‘expectations gap’? Is there even anything the accounting profession can do to close this ‘Expectations Gap’? Question #2 – To converge or not to converge, that is the question. The adoption of IFRS by U.S. companies would it easier to compare U.S. and foreign companies, as well as for U.S. companies to raise capital in foreign markets.arrow_forwardWhich TWO of the following statements would be an advantage of adopting IFRS Standards? i) It would be easier for investors to compare the financial statements of companies with those of foreign competitors. ii) Cross-border listing would be facilitated. iii) Accountants and auditors would have more defence in case of litigation. iv) The IFRS Standards can be more easily tailored to reflect the industries of the territory adopting them.arrow_forwardDiscuss the impact of globalization on accounting theory and the need for harmonization of accounting standards across different jurisdictions.arrow_forward
- 1.The IASB sets standards for: a. The private sector b. The public and private sectors c.The public, private and not-for-profit sector d. The private and not-for-profit sector 2. Which of these is not one of the benefits of a Conceptual framework? a. Reporting requirements will be more Consistent and logical b. It may allow firms to reduce their reported profit c. The need for specific accounting standards should be reduced d. Standard setting boards will be more accountable for their actionsarrow_forwardE2 global accounting standards are compelling. High quality standards by companies throughout the world has the potential to improve the comparability and transparency of financial information, List different types of accounting standards In the U.S., Generally Accepted Accounting Practices (GAAP) are the standard. In 2002, the European Union adopted IFRS Standards. Differentiate between GAAP and IFRS According to Ann Tarca (2012) “The Case for Global Accounting Standards: Arguments and Evidence” indicate several benefits in considering IFRS by the organization . Read the attached journal in the moodle and summarize the answers in your own words IFRS and Market Effciency IFRS and Economic developmentarrow_forward3. What are the advantages of rules-based standards? 4. Do you think that future international accounting standards will need to be more principlesbased or more rules-based? Many outside the United States claim that a problem with U.S. GAAP is that there are too many rules. They argue for principles-based accounting standards in which the broad principles of accounting are emphasized and less emphasis is placed on detailed implementation rules. Americans counter that IFRS may lack quality and rigor. Additional rules are necessary to provide adequate guidance to users.arrow_forward
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