Accounting: International Financial Reporting Standards and Accounting Standards Board Essay

Submitted By courtneyperez91
Words: 588
Pages: 3

What is the most common reason for expatriate failure? (p. 609-610)
Number one reason: Inability of spouse to adjust
Expatriate failure: the premature return of an expatriate manager to his or her home country

What are good predicators of success in a foreign posting?

What are some responses by labor to the increased bargaining power of multinationals?

What country has an accounting system that was developed with the government in mind? (Ch. 19 PowerPoint)
France and Sweden

What organization is responsible for formulating international accounting standards? (p. 647 Chapter Summary)
International Accounting Standards Board (IASB)

Which two accounting bodies are expected to dominate accounting practices? (p. 639)
U.S. Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB)

When a firm uses the exchange rate at the balance sheet date to translate financial statements of a foreign subsidiary into the home currency, what method or principle should the firm use? (p. 642)
Temporal Method

Financial statements of the U.S. firms must be prepared according to what regulations or standards? (p. 639)
Generally Accepted Accounting Principles (GAAP) – written by the U.S. Financial Accounting Standards Board (FASB)

What are the decision areas in financial management? (p. 654)
Investment decisions – decisions about what activities to finance
Financing decisions – decisions about how to finance those activities
Money management decisions – decisions about how to manage the firm’s financial resources most efficiently

What is the fee for moving cash from one location to another called? (p. 660)
Transfer fee

What are the corporate income tax rates of Canada, Ireland, Germany, and Japan? (p.661)
Canada – 36.1%
Ireland – 12.5%
Germany -38.36%
Japan – 40.69%

What term specifies that parent companies are not taxed on foreign source income until they actually receive a dividend? (p. 661)
Deferral principle: parent companies are not taxed on foreign source income until they actually receive a dividend

What are the ways that firms can transfer liquid funds across the borders? (p. 662-666)
Dividend remittances, royalty payments and fees, transfer prices, fronting loans

What is the most common method of transferring funds from subsidiaries to the parent? (p. 662)
Payment of dividends

With regard to the Li & Fung assigned case, what are two benefits to Li & Fung’s customers of working with the company?