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| Financial Reporting in The Global Arena | |
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| Introduction | |
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| Interaction Between Accounting and Its Environment | |
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| Nature of Capital Markets | |
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| Type of Reporting Regime | |
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| Size and Complexity of Business Entities | |
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| Type of Legal System | |
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| Level of Enforcement of Regulations | |
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| Rate of Inflation | |
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| Political and Economic Ties | |
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| Stature of the Accounting Profession | |
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| Existence of a Conceptual Framework | |
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| Quality of Accounting Education | |
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| Diverse Roles of Accounting in Countries | |
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| Policy Choices in Accounting | |
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| Effects of Diversity on Capital Markets | |
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| Classification of Financial Accounting and Reporting Systems | |
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| Review of Selected Classification Studies | |
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| Major Challenges Facing Accounting Globally | |
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| Global Convergence | |
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| Quality of Financial Reporting in Developed and Emerging Economies | |
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| Social Responsibilty Reporting | |
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| Financial Reporting in the High Technology Era | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| The Move to International Financial Reporting Standards | |
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| Introduction | |
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| Rationale for Harmonization | |
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| Pressures for Harmonization | |
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| Investors | |
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| Multinational Companies | |
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| Regulators | |
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| The Securities Industry and Stock Exchanges | |
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| Emerging Economies | |
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| Obstacles to Harmonization | |
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| Measuring Harmonization | |
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| Supra-national Organizations Engaged in Accounting Harmonization | |
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| International Accounting Standards Committee | |
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| International Accounting Standards Board | |
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| International Federation of Accountants | |
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| International Organization of Securities Commissions | |
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| United Nations | |
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| Organization for Economic Cooperation and Development | |
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| Other Harmonization Efforts | |
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| Bilateral or Mutual Agreements | |
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| World-Class Issuer | |
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| The IASC/IOSCO Initiative | |
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| Transition to IFRS in the US | |
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| Evidence on Harmonization | |
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| Global | |
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| Regional | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| Accounting for Currency Exchange Rate Changes | |
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| Introduction | |
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| Overview of Foreign Currency Markets and Exchange Rates | |
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| Foreign Exchange Exposure | |
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| Accounting for Exchange Rate Fluctuations | |
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| Foreign Currency Transaction Versus Translation | |
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| Translation Methods | |
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| Foreign Currency Translation in the United States | |
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| FASB Statement No. 8 (SFAS No. 8) | |
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| FASB Statement No. 52 (SFAS No. 52) | |
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| SFAS No. 52 and the Functional Currency Concept | |
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| SFAS No. 52 Translation in Highly Inflationary Economies | |
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| SFAS No. 133-Accounting for Derivatives and Hedging Activities | |
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| SFAS No. 161-Disclosures About Derivative Instruments and Hedging Activities | |
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| The International Accounting Standard on Foreign Currency Translation | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| Selected Financial Reporting and Disclosure Issues in the Global Context | |
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| Introduction | |
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| Accounting for Changing Prices | |
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| Inflation-Adjusted Accounting Models | |
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| General Price Level Adjusted (GPU) Model | |
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| Current Cost-Adjusted (CCA) Model | |
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| Accounting for Intangible Assets | |
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| Goodwill | |
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| Brands, Patents, and Trademarks | |
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| Research and Development | |
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| Geographic Segment Reporting | |
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| Research Evidence on Geographic Segment Reporting | |
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| Developments in Geographic Segment Reporting | |
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| Environmental and Social Reporting | |
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| Environmental Disclosures | |
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| Employee Disclosures | |
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| Global Reporting Initiative (GRI) | |
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| Survey of Corporate Responsibility Reporting | |
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| Value-added Statement | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| Using Corporate Financial Reports Across Borders | |
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| Introduction | |
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| Corporate Responses to Foreign Users of Financial Statements | |
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| Coping With Transnational Financial Reporting | |
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| Preparer Response to Transnational Financial Reporting | |
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| User Response to Transnational Financial Reporting | |
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| International Financial Statement Analysis | |
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| Depreciation and Revaluation of Long-lived Assets | |
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| Goodwill | |
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| Foreign Exchange | |
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| Pension and Other Post-employment Benefits | |
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| Consolidation and Group Reporting | |
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| Taxation | |
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| Additional Issues in International Financial Statement Analysis | |
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| Availability of Data | |
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| Reliability of Data | |
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| Timeliness of Data | |
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| Language, Terminology, and Format | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| Financial Reporting in Emerging Capital Markets | |
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| Introduction | |
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| The Nature and Importance of Emerging Capital Markets | |
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| The Role of Financial Reporting in Emerging Capital Markets | |
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| Characteristics of Financial Reporting in Emerging Capital Markets | |
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| Availability | |
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| Reliability | |
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| Comparability | |
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| Financial Reporting Policy Issues in Emerging Capital Markets | |
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| Information Availability | |
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| Strengthening Enforcement Capability | |
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| Convergence of Accounting Standards | |
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| Caveats Based on Recent Developments | |
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| Accounting in Selected Emerging Capital Markets | |
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| Mexico | |
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| People's Republic of China (PRC) | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| Managerial Issues In International Accounting | |
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| Introduction | |
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| Budgeting and Performance Evaluation | |
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| Using Appropriate Performance Measures | |
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| Using Appropriate Currencies | |
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| Transfer Pricing Policies | |
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| Other Considerations | |
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| Distinguishing Between Manager Performance and Subsidiary Performance | |
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| Some Comparative Evidence on Budgets and Performance Evaluation Systems | |
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| Global Risk Management | |
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| Multinational Capital Budgeting | |
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| Managing Foreign Exchange Risk | |
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| Transfer Pricing | |
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| Major Constituents Affected by Transfer Pricing Choices | |
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| Internal Constituents | |
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| External Constituents | |
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| Transfer Pricing Methods | |
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| Advance Pricing Agreements | |
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| Research Evidence on Determinants of International Transfer Pricing Methods | |
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| A Transfer Pricing Illustration | |
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| Information Technology | |
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| Complexities Involving IT Systems for MNCs | |
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| Global IT Challenges and Strategies | |
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| Ethics and Culture | |
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| Summary | |
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| Questions | |
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| Exercises | |
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| Cases | |
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| References | |
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| Test Prepper Questions | |
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| Appendices | |
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| List of Abbreviations | |
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| Directory of Relevant Web Sites | |
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| Subject Index | |