tailieunhanh - Lecture International accounting (4/e): Chapter 1 - Timothy Doupnik, Hector Perera

Chapter 1 - Introduction to international accounting. This chapter include objectives: Discuss the nature and scope of international accounting; describe accounting issues confronted by companies involved in international trade (import and export transactions); explain the reasons for, and the accounting issues associated with, foreign direct investment; describe the practice of cross-listing on foreign stock exchanges;. | Chapter 1: Introduction to International Accounting Learning Objectives Discuss the nature and scope of international accounting Describe accounting issues confronted by companies involved in international trade (import and export transactions) Explain the reasons for, and the accounting issues associated with, foreign direct investment Describe the practice of cross-listing on foreign stock exchanges Explain the notion of global accounting standards Examine the importance of international trade, foreign direct investment, and multinational corporations in the global economy 1-2 2 International Accounting Includes study of various functional areas of accounting Focuses on the accounting issues unique to multinational corporations Can be defined at three different levels Supranational accounting Standards, guidelines, and rules issued by supranational organizations Company level Followed by company in international business activities and foreign investments International accounting Study of the standards, guidelines, and rules of accounting, auditing, and taxation existing within each country and comparison across countries 1-3 Accounting Issues Related to International Business—Sale to Foreign Customer First encounter with international business occurs as sales to foreign customers Credit sales are made to foreign customers who will pay in their own currency Gives rise to foreign exchange risk 1-4 Accounting Issues Related to International Business—Sale to Foreign Customer Suppose that on February 1, 2014, Joe Inc., a . company, makes a sale and ships goods to Jose SA, a Mexican customer, for $100,000 (.) However, it is agreed that Jose will pay in pesos on March 2, 2014. The exchange rate as of February 1, 2014 is .$1 = 10 pesos. How many pesos does Jose agree to pay? 1-5 Accounting Issues Related to International Business—Sale to Foreign Customer Even though Jose agrees to pay 1,000,000 pesos ($100,000 x 10 pesos/. $), Joe Inc. records the sale in . | Chapter 1: Introduction to International Accounting Learning Objectives Discuss the nature and scope of international accounting Describe accounting issues confronted by companies involved in international trade (import and export transactions) Explain the reasons for, and the accounting issues associated with, foreign direct investment Describe the practice of cross-listing on foreign stock exchanges Explain the notion of global accounting standards Examine the importance of international trade, foreign direct investment, and multinational corporations in the global economy 1-2 2 International Accounting Includes study of various functional areas of accounting Focuses on the accounting issues unique to multinational corporations Can be defined at three different levels Supranational accounting Standards, guidelines, and rules issued by supranational organizations Company level Followed by company in international business activities and foreign investments International accounting .